Unlocking the Door to Success: Vietnamese Fruits Enter the Northeast Asian Market

"A plethora of Vietnamese fruits are now gaining access to the Northeast Asian market, significantly contributing to the country's goal of exporting $7 billion worth of fruits and vegetables by 2024. This encouraging news was shared by Mr. Dang Phuc Nguyen, Secretary-General of the Vietnam Fruit and Vegetable Association, on August 2nd."

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Vietnamese enterprises are purchasing durians that meet the export standards to China. Photo: Anh DÅ©ng/VNA

As of the end of July, fruit and vegetable exports had brought in 3.8 billion USD, with durian alone contributing 40% of the total fruit and vegetable export value. This remarkable achievement is attributed to the free trade agreements (FTAs) that have come into force, opening up and reducing tariffs for many Vietnamese agricultural and fruit products.

Notably, Northeast Asian markets, including China, South Korea, and Japan, are witnessing a remarkable breakthrough, accounting for 80% of Vietnam’s fruit and vegetable export turnover.

Mr. Dang Phuc Nguyen analyzed that China is a populous market with a high demand for fruits and vegetables and has been a traditional customer of many types of Vietnamese fruit. Meanwhile, Japan and South Korea are countries with high populations and incomes, and they have a significant demand for high-quality agricultural and fruit products.

These two countries are also members of the Regional Comprehensive Economic Partnership (RCEP). Vietnamese export enterprises, when exporting to these markets, not only benefit from tariffs but also reduce transportation and logistics costs and maintain the quality of agricultural products compared to exports to distant markets such as the EU and the US.

Objectively, since the beginning of 2024, tensions in the Red Sea region have prolonged the flow of goods from Asia to Europe and the Americas and vice versa, causing freight rates to increase by 2 to 3 times compared to before. This has made it difficult for goods, especially agricultural products from Europe and the Americas, to be exported to Asia. In this context, Vietnam, with its geographical advantages, diverse fruit varieties, and increasingly high quality, has become the preferred source of supply for markets such as China, Japan, and South Korea.

Meanwhile, Mr. Luong Ngoc Quang, from the International Cooperation and Communication Department of the Plant Protection Department, said that in the RCEP bloc, the number of agricultural products allowed to be exported to China is the largest, with 12 products, including dragon fruit, jackfruit, lychee, longan, mango, watermelon, banana, mangosteen, black jelly, durian, sweet potato; and temporarily, coconut, passion fruit, and chili.

New Zealand ranks second with five types of fruit, including mango, dragon fruit, longan, lemon, and grapefruit. Japan allows the import of dragon fruit, mango, lychee, and jackfruit from Vietnam. South Korea imports dragon fruit, mango, and most recently has officially granted permission for Vietnamese fresh grapefruit. In addition, the Ministry of Agriculture and Rural Development is actively negotiating to open the market for frozen durian and grapefruit to China and grapefruit to Japan…

According to Mr. Luong Ngoc Quang, when a new market accepts a product, it opens up opportunities to increase export turnover and affirm the position of Vietnamese agricultural products. However, the process of negotiating to open a market is not simple, taking a lot of time and effort. It usually takes 3 to 5 years, or even longer, to sign a protocol for some products.

Therefore, once the market is opened, producers and exporters must strictly comply with the standards set by the importing country. It is essential to avoid the case of “one bad apple spoils the bunch,” where a violating enterprise or shipment can lead to warnings or export suspensions for the entire industry.

Mr. Nguyen Thanh Hieu, Deputy Director of the Southern Fruit Research Institute, stated that Vietnamese fruit is becoming increasingly diverse, and its quality is improving, gaining the love of consumers in many markets. After a period of international integration, most exporting enterprises have proactively updated information and regulations of the market regarding food safety and plant quarantine…

However, the agricultural value chain begins with farmers, a group with limited access to changing market regulations and policies. Therefore, management agencies, local authorities, and enterprises need to actively support farmers in raising awareness and improving production capacity to meet market standards. They should also work on enhancing product packaging and design, thereby contributing to building and consolidating the brand of Vietnamese fruit and agricultural products in the international market.