Thailand expedites durian exports to compete with Vietnam
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Thai exporters are halving the time it takes to deliver durian to China, from 8 days to four days, in order to better compete with Vietnam over the pungent fruit.
Thailand shipped 477,700 tons of fresh durian to China in the first five months, valued at a record high of $1.75 billion and the highest in 30 years, according to official data.
This is because the country has been utilizing a new railway connecting it with Laos and China which help reduce transportation time.
TerapongTechasathian, Assistant Chief Operation Officer at Pan-Asia Silk Road Ltd, which operates the railway, said that in April the company set the record by transporting 25 containers of durians from Thailand to China in one day.
The train arrived at the destination in 4.5 days, quicker than the original estimate of six days, he added.
In March, Thailand raised its durian export quality to retain Chinese customers.
CEO of Vietnam’s fruit exporters Vina T&T, Nguyen Dinh Tung, said that Thailand is making moves to consolidate its durian market share in China amid rising competition from Vietnam.
Vietnamese fresh durian exports to China in the first five months surged 18 times to $477 million. China accounted for 95% of all durian exports from Vietnam.
Vietnamese durian can be harvested all year round, which is an advantage compared to Thai durian, Tung said. But Thailand has more advantage in shipment time, he added.
Dang Phuc Nguyen, general secretary of Vietnam Fruits & Vegetables Association, said that Vietnam’s border with China means it is easier to export to there by road.
Exporting by train from Thailand to China is fast but costly, he added.
Vietnamese exporters need to be prepared to compete with rising competition not only from Thailand but also Malaysia and the Philippines for the Chinese market, with demand forecast to reach 2 million tons a year in the future, Nguyen said.
Increasing exports quality, building brands and investing in technology to enhance preservation are key tasks, he added.
Questions & Answers
Q.What is Thailand doing to reduce its durian export time to China?
What is Thailand doing to reduce its durian export time to China?
Thailand is utilising a new railway, connecting it with Laos and China. This has helped halve the delivery time for durian to China, reducing it from eight days to four days.
Q.How significant were Thailand's durian exports to China in the first five months?
How significant were Thailand's durian exports to China in the first five months?
Thailand shipped 477,700 tons of fresh durian to China, valued at a record $1.75 billion. This is the highest export value in the past 30 years for the country.
Q.What advantages do Vietnam and Thailand each have in the durian export market to China?
What advantages do Vietnam and Thailand each have in the durian export market to China?
Vietnam benefits from durian availability all year round and easier road access to China due to its border. Thailand has an advantage in shipment time, thanks to the new railway infrastructure.
Q.What is the forecast for durian demand in the Chinese market?
What is the forecast for durian demand in the Chinese market?
Demand for durian in the Chinese market is forecast to reach 2 million tons annually in the future. This indicates significant growth potential for all exporting countries.