Vietnamese fruit loses market share at home
Vietnamese fruit loses market share at home
Vietnam has many advantages for tropical fruits, but because of poor packaging, marketing and high prices, local fruits cannot compete with imported products.
In Hanoi, imported fruit is priced reasonably and sells well. For example, apples imported from the US and New Zealand are only VND56,000 to VND70,000 ($2.5-3) per kilo, similar to the prices of some local fruits like Hoa Loc mango or mangosteen.
According to the Ministry of Agriculture and Rural Development, about 17,000 to 18,000 tons of fruit arrive at HCM City’s Thu Duc fruit wholesale market every night, including 30% of imported fruits. Apples, pears, and oranges from Thailand, the Republic of Korea, and the US are more favored and sell very well.
Imported fruit is not only available at supermarkets but also traditional markets and mobile markets in Hanoi.
Customers say that imported fruits are well packed and the prices are also reasonable.
According to the Ministry of Agriculture and Rural Development, in January-July 2016, Vietnam earned US$1.4 billion from export of vegetables and fruits. Many picky markets are now opened to Vietnamese fruit such as the US, EU, Japan, the RoK. It is expected that fruit exports will bring in over US$2 billion for the country this year.
Deputy Minister of Agriculture and Rural Development Le Quoc Doanh said that the fruits are considered a "savior" for agricultural exports of Vietnam. The Ministry and related agencies are speeding up trade promotion for this item, which has potential in both quantity and quality.
Doanh said it is good to explore foreign markets but the domestic market is also important.
"Vietnam is spending a lot of money to import fruit. If Vietnamese fruits satisfy picky foreign markets, then there is no reason that local customers cannot choose it. The matter is our poor marketing and promotion activities. Some customers still favor foreign than local products," said Doanh.
Ho Quoc Nguyen, Director of External Relations of Big C supermarket chain, said that besides imported fruit, supermarkets also sell fruit of foreign origin grown in Vietnam.
This kind of fruit is cheaper than imported fruit of the same kind. It sells very well.
Nguyen Khac Huy, Director Hoang Phat Fruit Co., after a long time of improving quality, Vietnam’s fruits have satisfied the condition of imports of many countries such as the US, New Zealand, Japan...
Besides foreign markets, fruit exporters are beginning to pay attention to the local market.
Fruit and vegetable imports from Australia skyrocket
Vietnam imports from Australia have risen sharply in recent times, particularly industrial raw materials, according to the latest statistics from the General Department of Vietnam Customs.
Worthy of notice were fruit and vegetable imports, which grew by 322% to more than US$19.8 million in the first half of this year. Other products saw a sharp growth, such as cotton (up 319.7%), coal (160.8%), ores and minerals (88.8%) and base metals (41.7%).
Vietnam Customs also reported that trade turnover between Vietnam and Australia hit more than US$2.4 billion in the first six months, of which Vietnam’s exports to Australia were US$1.3 billion (down 17% against the same period last year) and imports reached US$1.1 billion (up 9.1%).
