Agro-staples project further gains
Agro-staples project further gains
Fruits, vegetables, and coffee were key exports for Vietnam’s agricultural sector in 2024, and the commodities are expected to have another promising year.
Some of Vietnam’s fruit and vegetables are being successfully exported to countries around the world, photo Le Toan |
Last week, Doan Nguyen Duc, chairman of HAGL Group, worked with Gia Lai People’s Committee to discuss plans to develop transport connections between material areas in the province and Laos to create better conditions for harvesting agricultural produce for export.
“HAGL currently has 7,000 hectares of banana fields in Vietnam and Laos for export to China, Japan, and South Korea. Another key fruit is durian, which not only generates high export value but contributes to creating a brand for Vietnam’s agricultural produce on international markets,” said Duc. “HAGL will start to harvest around a quarter of its 2,300-ha of durian gardens from this year.”
China needs 7-10 years to meet its own durian demand if it grows on overseas land. This is why the next five years will be a golden opportunity for the company,” Duc said.
He added that for every dollar he spends on growing durian trees, he earns five dollars of pre-tax profit. “No one believes it, but this is a fact recorded in our company’s accounting books,” he said.
Meanwhile, Intimex Group JSC expects to achieve an import-export turnover of $1.5 billion and a revenue of $3.3 billion in 2025.
The completion of Phase II of Intimex’s instant coffee factory by the end of 2025 will not only help the enterprise increase its production and export capacity but also open up opportunities for Vietnamese coffee in the global market. The group will focus on expanding the market in Asia and Africa - markets with great potential and rapid growth.
HAGL and Intimex are two of the largest agriculture import and export companies in Vietnam, along with Vietnam Southern Food Corporation, Agrex Saigon Foodstuffs, and Vilaconic.
Growing potential
For 2025, the agriculture export sector has set a target of over $8 billion and is confidently eyeing $10 billion in the near future.
“Processing and exporting enterprises of fruit and vegetables are facing a great opportunity to increase export turnover due to many expansion opportunities in large markets, especially for products such as durian, passion fruit, and fresh coconut. Meanwhile, the global market demand for these sources is increasing, while Vietnam has an attractive market opening policy,” said Dang Phuc Nguyen, secretary general of the Vietnam Fruit and Vegetable Association.
Nguyen mentioned that the agricultural product with the highest growth in 2024 was durian, with an export value of over $3.2 billion, an increase of $1 billion compared to 2023, and is expected to reach $4 billion in 2025.
“Durian will continue to be the main export product in 2025, and China remains the largest durian export market for Vietnam, accounting for over 90 per cent of the export value of this fruit. Passion fruit will also be a bright spot in the fruit and vegetable industry, as it accounts for nearly one-third of the export turnover to the EU, equivalent to $100 million per year, mainly in the form of frozen processing,” he added.
In 2025, Vietnam is expected to expand its export of passion fruit to the United States and lychees to the South Korean market. It is forecasted that the annual export turnover of passion fruit to the US will range from $50-100 million.
“Deducting the reserve for unexpected situations, the export potential of fruits and vegetables in 2025 is still expected to grow, at least by $8 billion,” added Nguyen.
A similar optimism is observed in the coffee industry. According to the Vietnam Coffee and Cocoa Association (VICOFA), prices are currently at their highest levels, nearly double compared to last year.
Fresh coffee is priced at 85 US cents per kilogramme, raw beans at $5 per kilogramme, and robusta on the global market exceeds $5,000 per tonne. For the whole year of 2024, Vietnam’s coffee exports are estimated to reach 1.32 million tonnes, valued at $5.48 billion. It is projected that during the harvest season, Vietnam’s output for the 2024-2025 crop year could reach 1.47 million tonnes, with exports potentially hitting $6 billion.
“Globally, coffee supply remains lower than rising demand. Another positive factor for Vietnamese coffee is the EU’s anti-deforestation regulation set to take effect at the end of 2025,” said Nguyen Nam Hai, chairman of the VICOFA. “Vietnam is one of the most proactive countries in complying with this regulation, ensuring continued advantages in coffee exports. In addition to raw exports, Vietnam is also accelerating the export of processed, instant, and branded Vietnamese coffee, helping the country achieve new milestones in coffee exports,”
The fruit and vegetable industry achieved remarkable growth in 2024, with export revenue hitting $7.12 billion, 27.1 per cent higher or nearly $1.5 billion more than in 2023. Many Vietnamese fruit and vegetable products such as durian, bananas, jackfruit, mangoes, longans, pomelos, watermelons, and passion fruits have also been successfully exported to various international markets.
Especially, the country’s coffee industry achieved success in the past year, with exports reaching 1.24 million tonnes. Coffee was the third most valuable agricultural product after vegetables and rice, with an export turnover exceeding $5.2 billion.
Vietnam’s fruits and vegetables are exported to more than 60 countries. The industry is also expanding its portfolio of processed products, which account for an increasing share of exports.
Meeting the requirements
Meanwhile, data from the Vietnam Fruit and Vegetable Association showed that Vietnam’s fruit and vegetable market share continued to expand in major markets in 2024. In China, market share rose from third to second place, while exports to the United States grew by over 30 per cent, and exports to Thailand surged by more than 80 per cent. Vietnamese fruits and vegetables are now present in over 60 markets worldwide. Besides fresh produce, Vietnam also exports processed fruit and vegetable products.
In August 2024, Vietnam signed an MoU to export fresh coconuts to the Chinese market, while also opening doors for many fresh fruit products to enter the US, and South Korea. At the same time, the country also successfully negotiated the export of passion fruit to the Australian market, marking it the fifth fruit to be officially exported there following mangoes, longans, lychees, and dragon fruit.
“This success is not only due to the introduction of new products into the markets but reflects the ability of Vietnamese fruit to meet import requirements. It highlights the awareness among producers and exporters about adhering to regulations when entering new markets,” said Nguyen Quang Hieu, deputy general director of the Plant Protection Department under the Ministry of Agriculture and Rural Development.
The department has successfully aligned the agreement terms with both Chinese regulations and Vietnam’s production conditions, yielding significant benefits for businesses, cooperatives, and farmers in terms of both input costs and administrative procedures, Hieu added.
Besides that, the Ministry of Industry and Trade, and the Ministry of Foreign Affairs were also active in supporting and opening new markets for fruits and vegetables. Together with the efforts of state management agencies in raising the profile of Vietnamese agricultural products, producers had to drastically change their awareness in complying with regulations of markets in Northeast Asia, the US, the EU, and the Middle East, and must continue to do so.
|
Do Ha Nam, chairman and CEO Intimex Group
Intimex Group finished 2024 strongly. Import-export turnover reached $1.4 billion, and revenue reached $3 billion, contributing $15.4 million to the state budget. With support from banks, the prices of agricultural exports increased significantly alongside market expansion, leading to remarkable growth in turnover and revenue compared to previous years. This marks the most successful year in the history of our operations. Entering 2025, the market is forecast to face numerous challenges, especially pressure to reduce agricultural product prices as Vietnam’s are higher than other countries. Additionally, climate change, security instability, and global economic uncertainties will continue to create unpredictability. Nevertheless, we have still targeted import-export turnover of $1.5 billion, and revenue of $3.3 billion to celebrate the 20th anniversary of the company in 2026. With this goal in mind, the business strategy of in-depth investment and breakthrough profit will be vigorously implemented by the group this year. Alongside completing the second phase of the instant coffee factories by the end of 2025, increasing the capacity of rice processing plants for export, and expanding market presence in Asia and Africa are plans set by the company to create opportunities for sustainable development and contribute to strengthening our position in the industry. With a team of over 1,000 highly qualified and experienced staff in agricultural produce exports, along with innovative strategies and determination, we believe in a new year full of opportunities, and hope to continue to enhance the value of Vietnamese agriculture on the international market. |
