Vietnamese export staples enjoy growing demand
Vietnamese export staples enjoy growing demand
Vietnamese exporters are recording rising orders for rice, fruit and vegetables, and coffee at the beginning of 2024, signalling a vibrant year for Vietnam’s agricultural exports.
According to the Ministry of Agriculture and Rural Development, rice, coffee, and fruit and vegetables brought in over $14 billion in export revenues last year, the highest level ever. It is forecast that exports in these three categories will reach as much as $17.5 billion in 2024.
Already this year, Trung An High-Tech Agriculture JSC has signed six orders with a volume of 1,500 tonnes of rice for the EU, the United Kingdom, Malaysia, Dubai, and Australia, with the highest price of almost $1,400 per tonne.
General director Pham Thai Binh said, “There are many opportunities for rice exports in light of the growing demand in major markets such as Indonesia, the Philippines, and China. Vietnam’s rice export may be similar to the volume last year, but the value is greater thanks to higher prices.”
Meanwhile, Nguyen Dinh Tung, chairman of Vina T&T Group, said, “The company has just exported the first shipment of durian to China and An Giang mango to the United States and Australia in 2024. The export market is sending positive signals as we achieve full orders from our traditional buyers.”
Last year, Vina T&T Group generated $73 million in export revenue, up 40 per cent on-year. The company mainly exports durian, dragon fruit, mango, longan, grapefruit, and coconut to demanding markets such as the US, Australia, Europe, and China. The company expects its exports to achieve double-digit growth this year in light of the positive signals in the market.
Vietnam’s fruit and vegetable sector has become a bright spot in agricultural exports, as its export turnover hit a record high of nearly $5.6 billion last year. Among them, durian accounted for $2.4 billion, while processed fruits and vegetables made up $1 billion.
In addition, Vietnam also exported 1.61 million tonnes of coffee in 2023, earning $4.2 billion, down 9.6 per cent in volume but up 3.1 per cent in value on-year. The average coffee export price climbed 14.1 per cent on-year to $2.834 per tonne.
According to the Ministry of Industry and Trade’s Agency of Foreign Trade, Vietnam’s coffee exports continue to benefit from the rise in robusta coffee prices, which is likely to reach a peak amidst the potential supply shortage.
Meanwhile, Vietnam’s rice exports also jumped to a record high of eight million tonnes last year, generating over $4.8 billion in revenue. The nation maintains an average rice export of 7-8 million tonnes per year, indicating stability in stock and supply chain. As a result, many foreign buyers are increasingly importing Vietnamese rice.
The Vietnam Food Association said that rice exports will continue benefiting from a favourable context in 2024 as the world is facing a shortage of five million metric tonnes, with importers such as Indonesia and the Philippines still having demand for imported rice, and India likely to maintain export restrictions.
Agricultural exports are expected to grow this year as Vietnam’s production, processing, and supply capacity are increasingly improved. The country’s agricultural products have been present in over 190 countries and territories.
However, Vietnam only holds a modest market share in major markets. Specifically, Vietnamese agricultural products account for less than 5 per cent of China’s total import value within this product category. There is also ample room for growth in the US, EU, and Japan.
After successful exports of fresh durian, Vietnam has set its sights on frozen durian this year. The country has completed procedures and documents and is waiting for a licence for the official export of durian to China. Thus, durian exports could climb 30 per cent to reach $3.5 billion this year. In addition, Vietnamese authorities are also promoting the official export of other produce to China, such as fresh coconut.
