Market diversity
In addition to strong growth in revenue, the export of fruit and vegetables also witnessed a diversity in markets. In January, China was the largest importer of Vietnamese fruit and vegetables with a 59.1% share, followed by Thailand and the US, which accounted for 5.2% and 4.3% of Vietnamese exports, respectively. Some markets with strong growth included Ukraine, Cambodia and Egypt, whose imports of fruit and vegetables from Vietnam increased by between five and eleven times.
It is notable that exports to China rose compared with the same period last year but the market share declined from 61.7% to 59.1% in January, indicating that the reliance of Vietnamese fruit and vegetable exports on established markets is falling in tandem with the decent growth in some new markets.
As Vietnam has joined many free trade agreements such as the EU-Vietnam Free Trade Agreement, the Regional Comprehensive Economic Partnership and the UK-Vietnam Free Trade Agreement, the export of fruit and vegetables has many favourable conditions to conquer high-quality markets in 2021.
Focus on processing
According to assessments of many enterprises, as the Covid-19 pandemic remains complicated, processed products will help increase the export value of fruit and vegetables.
Vina T&T General Director Nguyen Dinh Tung said although the coronavirus pandemic surged many times in 2020, it did not greatly affect the company’s export activities as many kinds of fruit had already been processed and could be stored safely for a long time.
Therefore, enterprises should invest in deep processing so that when the export of fresh fruits faces difficulty, they can be processed and may even have their value enhanced.
General Secretary of the Vietnam Fruit and Vegetable Association Dang Phuc Nguyen stated that there is good reason to believe that the export of fruit and vegetables will continue to post strong growth in the coming months, given the encouraging performance in the first two months of the year.
He added that the export of fruit and vegetables is well-positioned to increase in terms of revenue thanks to the signed free trade agreements. In addition, many kinds of Vietnamese fruit and vegetables have met the stringent requirements of high-quality markets such as the US, the EU and Japan, which makes consumers around the world have confidence in Vietnamese agricultural goods.
Therefore, the sector needs to continue focusing on enhancing product quality and safety by developing cultivation areas that meet good agricultural practices and processing facilities that meet the required standards.
Given that Covid-19 has yet to be brought under control, exporters also need to pay attention to packaging and transport to prevent the transmission of coronavirus so that they can be easily cleared to enter other countries.
