Workers package fresh coconuts for export at a processing facility in Vinh Long province. (Photo: VNA)

As plant-based products surge worldwide, a coconut powerhouse is taking shape in Vietnam’s Mekong Delta. Anchored by Vinh Long’s vast groves and deep-processing drive, the country’s coconut industry is eyeing a new billion-dollar frontier.

In 2025, the province’s coconut export value is expected to exceed 500 million USD, underscoring its status as the nation’s leading “Coconut Capital”.

With nearly 120,000 hectares of coconut – equivalent to about 65% of national coconut cultivation – the enlarged province of Vinh Long (which now also includes the former provinces of Tra Vinh and Ben Tre) commands a raw-material base unmatched by most global coconut producing regions.

Although Vietnam accounts for only around 2% of global coconut-growing area, its value-added ratio is almost three times the world average, thanks to product diversification and deep processing. This advantage is particularly evident in Vinh Long.

According to Chau Huu Tri, Director of the Agricultural Extension Centre under the provincial Department of Agriculture and Environment (DAE), coconuts grown between the Tien and Hau rivers absorb nutrient-rich alluvium, producing fruits with abundant sweet water and thick flesh – attributes highly sought after by international buyers.

Yet structural challenges persist. Most farmers cultivate only around 0.4 hectare on average, leaving production fragmented and limiting investments in improved varieties and farming techniques.

Although the province hosts 183 coconut-processing enterprises, linkages between the State, scientists, businesses and farmers remain relatively loose, leaving the value chain exposed to fluctuations.

Organic production – vital for markets such as the US, the European Union and Northeast Asia – also faces bottlenecks due to inconsistent national frameworks on certification, traceability and pest control.

Processing power

Despite these constraints, Vinh Long’s long-term export potential remains exceptionally strong. Vietnam already masters about 90% of its coconut-processing technologies, enabling nearly every part of the coconut tree to be transformed into high-value products, according to Tri.

As global demand rises for plant-based beverages, natural ingredients and sustainable materials, opportunities for the province to strengthen its role in global value chains continue to expand.

A key contributor to this momentum is Tra Bac Joint Stock Company (Trabaco), one of the province’s largest deep-processing firms. Exporting to more than 30 countries, the company produces activated carbon, desiccated coconut, frozen coconut milk and a range of coir-based products.

CEO Huynh Khac Nhu said investment into Vinh Long’s coconut sector – both domestic and foreign – was accelerating, with new projects valued between 500 billion VND and 1 trillion VND (20 - 40 million USD).

However, raw material supply remains insufficient, forcing factories to source coconuts from neighbouring provinces. Only around 2% of local farmers own more than five hectares, making it difficult to establish uniform cultivation zones that meet international standards.

Nhu suggested prioritising the rehabilitation of mixed coconut gardens, expanding industrial-grade varieties, improving traceability systems and modernising harvesting and transport chains.

With an economic lifespan of more than 60 years, coconut trees can support long-term value chains if production is organised methodically.

Market imbalance

This view is echoed by Pham Hong Duong, Deputy General Director of Betrimex Import Export Joint Stock Company, who noted that Vietnam produces roughly 1.7 billion coconuts annually, ranking sixth globally and standing as the world’s leading exporter of canned coconut water.

The industry earned 1.05 billion USD in 2024, but with more advanced deep processing, this figure could rise to 1.8 billion USD each year.

Yet farmers often sell fresh aromatic coconuts for about 30,000 VND (1.20 USD) per dozen, while factories pay up to 15,000 VND (0.60 USD) for a single industrial-grade fruit.

This imbalance is a direct result of insufficient industrial varieties suitable for deep processing.

Vinh Long currently has more than 30,000ha of internationally certified organic coconut, but safeguarding this advantage requires strict biological pest management.

Duong warned that even one month of pest outbreak could reduce output for an entire year, stressing the need to prioritise sustainable biological crop protection.

Building resilience

According to Van Huu Hue, Deputy Director of the provincial Department of Agriculture and Environment, Vinh Long is pursuing a comprehensive strategy to strengthen climate-adaptive cultivation, enhance deep-processing capacity and tighten value-chain cohesion.

The province is expanding internationally certified organic zones, selecting drought- and salt-tolerant varieties, adopting water-saving irrigation systems and promoting low-emission farming techniques.

Biological control agents such as parasitic wasps and earwigs are being encouraged to protect coconut farms against pests.

Beyond agriculture, Vinh Long also aims to link coconut production with tourism, promote local craft villages and develop OCOP products — especially those made from the province’s well-known sáp coconut variety.

On the processing side, Vietnam still lags behind the Philippines and Indonesia in advanced technologies, particularly in preserving drinking coconuts.

To meet rising quality standards in major markets, the province plans to introduce new incentives to attract investment into modern deep-processing technologies that fully use coconut water, flesh, husk, shell, and trunk.

Digital transformation – including blockchain-based traceability and automated quality monitoring - will be prioritised.

To strengthen the value chain, Vinh Long will support the establishment of modern agricultural cooperatives, intensify international trade promotion and build a strong global presence for the “Vinh Long Coconut” brand. International cooperation will also be expanded to access high-end technologies and premium markets.

In support of long-term development, the agricultural sector has proposed a project to analyse soil characteristics, build a detailed coconut soil map using ArcGIS and develop a comprehensive data system for planning from 2026 to 2030, with a vision to 2050.

With outstanding natural advantages, expanding processing capacity and increasing international demand, Vinh Long is well positioned to accelerate Vietnam’s ascent toward a new billion-dollar frontier in coconut exports.