Vegetable and fruit exports face tough competition from imports

With turnover of $375 million in May, fruit and vegetables were among the biggest export items for Vietnam, while imports of the same equalled $183 million.  The high export turnover of $375 million represented a sharp increase of 75 percent in comparison with the same period last year.

The increase of $161 million in vegetable and fruit export turnover made up 26 percent of the total exports increase of 13 key farm produce and agriculture material items.  Analysts said the target of $3 billion in vegetable and fruit export turnover this year is within reach.

However, Vietnam, which takes pride as a big vegetable and fruit exporter, also had to import $183 million worth of products in May, a sharp rise of 79 percent compared with the same period last year, raising the import turnover to nearly half a billion of dollars in the first five months of the year.

Nguyen Dinh Bich, a trade expert, pointed out big problems in the market structure. The exports to the Chinese market have been increasing rapidly from less than 30 percent in 2014 to 65 percent in 2015.  The growth rate exceeded 70 percent in 2016, while it reached 75.5 percent in the first five months of 2017. In 2014, Vietnam exported $435 million worth of products to China, but exported $1.054 billion to other markets.

The trend reversed in 2015: while exports to China increased sharply by $760 million in turnover to $1.195 billion, exports to other markets decreased by $410 million to $644 million. The same situation was seen in 2016 and the first five months of 2017.

“Do Vietnam’s fruit flow to China’s Guangxi province to be sorted and labeled as ‘made in China’ for re-export to the world market?” Bich asked, emphasizing that Guangxi is China’s ‘fruit granary’ with output of 359 kilos per head per annum,1.8 times higher than the average level of the country.

Imported fruits are displayed in advantageous positions at supermarkets for the upper and middle class, and sold at high prices.

Thai exporters enjoy big benefits from the Vietnamese market. In May 2015, Vietnam imported $13 million worth of fruit from Thailand, which accounted for one-third of total fruit import turnover.

Meanwhile, the figure soared to $38 million in May 2016 and to $129 million in May 2017.