The export value of fruits and vegetables in January 2021 is estimated at US$260 million, down by 7.6% compared to the same period in 2020.

Picture for illustration.

Export value decreased by 7.6%

According to the Department of Agricultural Product Processing and Market Development (Ministry of Agriculture and Rural Development), the export value of fruits and vegetables in January 2021 is estimated at US$260 million, down by 7.6% compared to the same period in 2020.

In the domestic market in January 2021, dragon fruit in Binh Thuan province is grown for the Lunar New Year. However, the price of this fruit is still very low, only VND5,000-8,000 per kg.

Due to off-season dragon fruit production, the cost of fertilizer is high, making farmers face difficulties in price. In contrast, the price of pineapple in Long An province increased due to the decrease in supply while the market demand was still high. Currently, type 1 pineapple costs about VND10,000 per kg, twice as in the same period in 2020.

Regarding vegetables and fruits for the Lunar New Year, the overall supply will not be insufficient, but the selling prices of some items may increase compared to the same period in 2020.

Typically, in Da Lat, tomato prices could increase due to unstable weather, the ripening time of the tomatoes changed. Some other items may increase slightly or decrease depending on the market demand, but the increase is acceptable.

Mr. Nguyen Quoc Toan, Director of the Department of Agricultural Product Processing and Market Development, said that the Covid-19 pandemic had a great impact on Vietnam's fruit and vegetable exports.

In the future, enterprises need to strengthen supervision of goods quality, avoid violating regulations of other countries on standards, testing, quarantine and food safety so that the customs clearance process will not be affected.

Strive to reach export target of US$4 billion 

Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association said that in 2021, vegetables and fruits are still essential items for the health of consumers, especially in the context of the pandemic, so fruit and vegetable products are still in high demand.

The export target of the fruit and vegetable industry in 2021 is US$4 billion. This is the number that it would have reached in 2020 without Covid-19.

"If the situation is difficult, it is possible that the export this year will reach a pre-pandemic level of about US$3.7 billion, equal to 2019," Mr. Dang Phuc Nguyen added.

Representatives of some businesses directly exporting fruit and vegetables also said that the scope of the fruit and vegetable industry in the world market is still very large. The outlook for fruit and vegetable exports in 2021 is expected to be more positive, especially when Vietnam has signed many Free Trade Agreements such as the EVFTA, the UKVFTA, and the RCEP.

However, in the context of the pandemic, consumers will pay more attention to health issues, so markets will strengthen technical barriers, including China, which is considered "easy", is also gradually more "difficult".

In order to make good use of opportunities to promote fruit and vegetable exports, businesses must have a methodical investment such as the planting area must reach Global GAP, the factory must have ISO certification, social and environmental certification. These are the things that should be in place before negotiating with a partner.

Once there are customers, it is essential that businesses continue to maintain these conditions and avoid the situation of canceled export shipments due to failures to meet conditions and requirements.

Regarding promoting the export of fruits and vegetables in 2021, the Import-Export Department (Ministry of Industry and Trade) said that exporting enterprises should increase investment in processed and preserved products and vegetables to meet export requirements in the context of uncontrolled pandemic and natural disasters forecast in 2021.

In the Chinese market alone, the Import and Export Department assessed that the living standards of Chinese people have improved, consumers increasingly appreciate the quality and safety of agricultural products and foodstuff. China is still a large purchasing power market and the largest destination for Vietnamese fruits and vegetables.

"In order to boost exports to this market, businesses need to improve the quality of fruit and vegetable products and meet the standards required by the Chinese side," the representative of the Import and Export Department said.

In 2020, China was the largest importer of the Vietnamese fruit and vegetables with 56.3% market share; followed by the US market with US$168.8 million (accounting for 5.2%); Thailand reached US$157.2 million (accounting for 4.8%); South Korea reached US$143 million (accounting for 4.4%); Japan reached US$127.7 million (accounting for 3.9%). In 2020, the market with the strongest increase in fruit and vegetable export value is Cambodia (up by 142%). In contrast, the market with the strongest drop in export value was Laos (down by 45.5%).