While 90% of Vietnam's durian is exported to China, Vietnamese durian accounts for only about 5% of the total imports of this market.
According to the Vietnam Fruit and Vegetable Association, in October 2023, the export of fruits and vegetables is estimated to reach nearly USD 700 million, up 4.7% from the previous month and up 126.2% compared to the same period in 2022. Overall, in the first 10 months of 2023, the export of fruits and vegetables reached USD 4.912 billion, an increase of 78.4% compared to the same period in 2023. Notably, surpassing other fruits, durian is expected to contribute more than 30% to the total export turnover of fruits and vegetables, equivalent to about USD 2 billion.
It can be seen that after signing the memorandum, the export of durian to the Chinese market has experienced a spectacular breakthrough. Ms. Vu Kim Hanh, Chairwoman of the High-Quality Vietnamese Business Association, informed that by 2025, China's durian market capacity could reach USD 20 billion, and globally it could reach USD 28.6 billion. The industry's growth rate in the period 2019-2025 is forecasted to be about 7.2% per year. "90% of Vietnam's delicious durian has been exported to China, but considering the total import volume of the 1.4 billion market, the market share of Vietnamese products is only 5%, the rest is from Thailand and Malaysia," said Ms. Vu Kim Hanh.
Ms. Vu Kim Hanh believes that the Vietnamese durian industry is still pinning hopes on the Chinese market. Therefore, she hopes that the Ministry of Agriculture and Rural Development and localities will tighten the management of planting area codes, have strong sanctions for violations to ensure the standards, quality, and reputation of Vietnamese products.
Regarding the export market, according to businesses in the industry, although the export turnover of Vietnamese durians to China has experienced strong growth in the past, it is still low compared to Thailand. Especially, recently, Thailand has raised the standards for exported durians, specifically increasing the dryness of durian flesh from 32% to 35% and monitoring each batch to ensure compliance with the specified requirements. This poses many challenges for durian growers and businesses in Vietnam.
Ms. Ngo Tuong Vy, General Director of Chanh Thu Fruit Import-Export Corporation, evaluates that Thailand's move affirms the quality standard position that this country has in many export markets.
Facing the race for the "throne" in the durian export market to China, Ms. Ngo Tuong Vy assesses that Vietnamese durians are still far behind in terms of both quantity and quality compared to Thailand.
In terms of quantity, Vietnam is facing the challenge of farmers developing durian excessively, posing the risk of an imbalance in supply and demand, and the operation of consumption linkages will face many difficulties. However, if compared to Thailand, the current durian output in Vietnam is still small, and there is still room for development of this product.
"At its peak, the provinces with the largest durian cultivation scale in the country, such as Tien Giang, Dong Nai, Dak Lak, harvest a maximum of about 250 containers per day. But for Thailand, exporting 1,000 containers of durians to China is a normal thing for many years," Ms. Ngo Tuong Vy cited as an example.
Although the durian output of Vietnam is still low compared to Thailand, Ms. Ngo Tuong Vy appreciates the advantage of handling off-season by Vietnamese durian growers. If in the past, only a few localities in the Mekong Delta could grow durians for off-season, now durians can be grown in regions across the country.
Especially in places like Soc Trang, Dong Thap, An Giang, where soil conditions are not conducive to durian tree development, but now people can grow and are highly appreciated by consumers for their quality.
Mr. Dang Phuc Nguyen, Secretary-General of the Vietnam Fruit and Vegetable Association, said that it is expected that by the end of October 2023, durian exports will bring in approximately USD 2 billion. And it is likely that throughout this year, durian exports will reach about USD 2.2 - 2.3 billion.
Speaking about the advantages of Vietnamese durians, Mr. Dang Phuc Nguyen said that Vietnamese durians are available all year round, while Thailand only has them in the season. Besides, our logistics costs for exports to the Chinese market are lower than Thailand. The quality of Vietnamese durians is also very good, so although we have just entered the durian market, we have achieved very commendable results.
The value of Vietnam's durian exports has continuously increased from USD 29.2 million in