Rice, fruits bright spot amid Vietnam export slump
In this article (5)
While exports of textiles, wood products and seafood plummeted in the first five months of 2023, those of rice and fruits have risen.
Overall exports between January and May were worth US$136.17 billion, down 11.6% year-on-year, according to the General Statistics Office.
Seafood, wooden furniture, handicrafts, and textile exports fell by double digits. Many businesses ran out of orders.
Fruits, rice and a few other staple products were bright spots, however. Fruit and vegetable exports grew by 29% to $1.9 billion, mainly due to increased Chinese imports, according to the Vietnam Fruit Association.
Among the top fruit and vegetable markets, strongest growth was seen in exports to China, the U.S., the Netherlands, and Malaysia. China alone accounted for $805 million worth of products.
Exports of processed foods such as instant and rice noodles and spices grew by 10-30%. Nguyen Anh Tuan, deputy general director of Colusa – Miliket Food Joint Stock Company, said exports, which went to 30 countries and territories, were 30% higher year-on-year.
Shipments to key export markets such as the U.S., Japan and South Korea increased sharply, he added.
Every year Lotus Rice exports several thousand tons of the grain to the EU market, but this year it is not “able to buy enough quality rice to sell,” its director Huynh Van Khoe said.
“There has never been a year when we’ve seen this many rice export orders. Even though rice prices have increased, our partners still want to buy large quantities.”
“able to buy enough quality rice to sell,”
China’s reopening has greatly benefited, Nguyen Dinh Tung, general director of Vina T&T Import and Export Company, said.
In the first four months of the year his company’s fruit exports grew by 20%, he said. He added that it has a contract to ship 1,500 containers (of 15 tons each) of durian to China.
Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, said Vietnamese fruits are becoming popular because of their taste.
Vietnamese durian, mango and dragon fruit are better priced and have higher quality than their competition from China and India, he said.
Vietnam also has a favorable climate and better farming techniques than other countries, and grows fruits all year round unlike in other countries, where they are seasonal, he said.
In the latter half of this year fruit and vegetable exports could spike if businesses meet the demands of the Chinese market using good agricultural practices, he said. “Fruit and vegetable exports this year could top $4 billion.”‘
Several factors drive the export boom. China’s reopening has led to a rise in demand for food staples, the war between Russia and Ukraine has forced countries to create food reserves and drought has caused a decrease in global food supply.
Markets such as Europe, the U.S. and the UK have increased food imports for their reserves.
A report by the U.S. Department of Agriculture said global output in the 2022-23 rice crop is expected to reduce by 2% from last year to 503 million tons, the first annual decline since 2015-16.
Yet businesses warned that the big picture for exports during the rest of 2023 is not very bright. The global economy is still in recession, inflation remains high and the risks of rising raw material prices still lurks.
Questions & Answers
Q.What is the overall value and year-on-year change for Vietnam's total exports during the first five months of 2023?
What is the overall value and year-on-year change for Vietnam's total exports during the first five months of 2023?
Overall exports between January and May were worth US$136.17 billion. This represents a decline of 11.6% compared to the same period in the previous year, according to the General Statistics Office.
Q.Which specific export categories experienced significant declines during the period mentioned?
Which specific export categories experienced significant declines during the period mentioned?
Exports of textiles, wood products, and seafood plummeted. Seafood, wooden furniture, handicrafts, and textile exports all fell by double digits, leading many businesses to run out of orders.
Q.Which markets showed the strongest growth for Vietnamese fruit and vegetable exports?
Which markets showed the strongest growth for Vietnamese fruit and vegetable exports?
Among the top fruit and vegetable markets, the strongest growth in exports was seen to China, the U.S., the Netherlands, and Malaysia. China alone accounted for $805 million worth of products.
Q.What factors are driving the increased demand for Vietnamese food staples globally?
What factors are driving the increased demand for Vietnamese food staples globally?
Several factors drive this boom, including China’s reopening leading to higher demand, the war in Ukraine prompting countries to create food reserves, and drought causing a decrease in global food supply.
Reader pulse
Will Vietnam sustain this export growth?
17,510 votes so far