The King of Fruits Awaits: Frozen Durian Primed for Official Export to China

According to statistics from the Ministry of Agriculture and Rural Development, fruit and vegetable exports in the first six months reached $3.43 billion, a 28.1% increase compared to the same period in 2023. China remains the top consumer of Vietnamese produce, accounting for 64.5% of the market share, with exports totaling $1.71 billion as of May 2024, a 33.4% increase year-on-year.

High Hopes for Frozen Durian

Durian continues to be Vietnam’s strongest export to China in the first half. The Vietnam Fruit and Vegetable Association estimates trade value to reach $1.5 billion, with over 90% being fresh durian. If the protocol for exporting frozen durian is signed soon, exports of this fruit to China will surge.

During his recent visit to China in late June, Prime Minister Pham Minh Chinh requested the early signing of the protocol and completion of procedures to open the market for Vietnamese frozen durian and fresh coconut…

From the perspective of exporting businesses, Mr. Truong Viet Thang, Director of Toan Thang Import-Export Trading Co., Ltd. (in Dong Nai province), shared that his company is ready to export frozen durian to the Chinese market. “Investing in a frozen durian export facility requires five times more capital compared to a fresh durian packaging warehouse, so there will likely be fewer competitors, and competition may be less fierce than for fresh durian,” Mr. Thang said. “China has developed many processed durian products and needs a large supply of raw materials. This segment also offers more stability than fresh durian due to its two-year shelf life,” he added.

Mr. Thang also noted that frozen durian focuses on meat quality and doesn’t require attractive external appearances like fresh durian, so Vietnam can export about 30% more of its durian produce, bringing significant economic value. However, as durian prices have already peaked, adding frozen products is unlikely to further increase prices but will mainly stabilize output. “If durian prices rise further, they will exceed consumers’ purchasing power,” he said.

Mr. Dang Phuc Nguyen, Secretary-General of the Vietnam Fruit and Vegetable Association, said that in 2023, China spent about $1 billion on importing frozen durian, so in the first year of entering the Chinese market, Vietnam could export $300-500 million worth of frozen durian annually.

“In the future, China will increase its imports of frozen, peeled durian for processing, reducing transportation costs by eliminating the peel at the source. Vietnamese businesses exporting frozen products will also have less pressure in complying with phytosanitary regulations (regarding harmful organisms associated with fresh fruit) and can sell deeper into China’s interior thanks to the longer shelf life,” Mr. Nguyen assessed.

The Ministry of Agriculture and Rural Development’s report for the first half of 2024 shows that durian continues to be a tropical fruit with hot growth in terms of area, reaching 153,900 hectares, up 17.4% over the same period last year. Durian harvest volume in the first half of 2024 is estimated at 487,700 tons, an increase of over 20% compared to the same period last year.

According to the Vietnam Fruit and Vegetable Association, durian exports are expected to increase in the coming months as the largest growing region in the country, the Central Highlands, enters the harvest season. Not only is the volume large, but durian prices in July are also high because the region mainly grows Monthong durian, and Thailand’s supply has ended, narrowing the supply.

Fresh Coconut, Grapefruit, Avocado, and More

In addition to frozen durian, the Secretary-General of the Vietnam Fruit and Vegetable Association said that among the fruits being negotiated for export to China, coconut also has great potential, with sales expected to reach about $300 million per year. For grapefruit, avocado, custard apple, and rose apple, each fruit can bring in $10-20 million per year due to competition from domestic products and limited market demand.

According to Mr. Cao Ba Dang Khoa, Secretary-General of the Vietnam Coconut Association, although the two countries have not signed the coconut export protocol, many Chinese businesses have recently come to the association to look for suppliers. “Just two days ago, a group of large Chinese coconut processing companies visited us. They said they were facing a severe shortage of raw materials, and in the first half of the year, they could only secure 30-35% of their needs,” Mr. Khoa informed.

Mr. Khoa also shared that since the coconut export protocol with China has not been signed, the association mainly encourages Chinese businesses to establish companies in Vietnam to facilitate future purchases. “We encourage not only Chinese companies but also Vietnamese enterprises to organize coconut collection points in the material region instead of relying on traders as at present. Currently, the cost from the garden to the factory accounts for up to 30% of the material cost of coconut due to the roundabout collection process, which is not scientific. Of course, we will screen to select businesses with genuine purchasing needs and a commitment to long-term operation in the material region,” he said.

Regarding avocado, Mr. Nguyen Van Muoi, Deputy Head of the Southern Office of the Vietnam Gardeners Association (VACVINA), also expressed high hopes as China is a huge market.

According to Mr. Muoi, avocado is easy to grow, requires little care and fertilizer, and does not need a large investment like durian. “This suits farmers with small capital. However, when targeting the export market, farmers should choose high-quality avocado varieties with thick peels and long shelf lives,” he advised.