Following the official recognition for export two months ago, Vietnamese coconut sales to China have seen an increase, with orders now in the thousands of containers. The Vietnam Coconut Association (VCA) notes that since the allowance of fresh coconut exports to China, key enterprises have managed to secure contracts ranging from 30-50 containers, with a record deal involving 1,500 containers. The VCA anticipates that fresh coconut exports to China will hit $250 million this year, making up 25 percent of the total export value of the industry.
Cao Ba Dang Khoa, the secretary general of the VCA, highlighted, "This demonstrates the enormous potential of the Vietnamese coconut market in China. The opening of the Chinese market for fresh coconuts is a very positive signal, not only for the coconut industry but also for increasing farmers' incomes and boosting local economic development." Nguyen Dinh Tung, CEO of Vina T&T Group, shared that the company has received numerous purchase inquiries from Chinese partners following agricultural promotion fairs, with the company ready to meet demand with six growing area codes and one packaging facility certification.
Aside from fresh coconuts, there is a demand in China for processed coconut products such as coconut milk, water, dried coconut, and jelly. Nguyen Van Thu, chairman of GC Food, mentioned the company's strategy to enter the Chinese market with coconut and aloe vera processed products, aiming for these exports to constitute 15 percent of its total revenue next year. However, competition, particularly from Thailand, poses a challenge due to lower coconut prices.
Nguyen Dinh Tung emphasized the need for the Vietnamese coconut industry to enhance production processes, packaging, and preservation to remain competitive and meet China's quarantine standards. Coconuts are part of Vietnam's plan to develop key industrial crops by 2030, with the country currently having significant cultivation across 15 provinces. In 2023, Vietnam exported fresh coconuts to 15 countries worldwide, with a notable increase in exports to China driven by the demand for fresh and nutritious food products.
The VCA also reports rising demand from other markets such as India and the Middle East. A recent protocol signed between Vietnam's Ministry of Agriculture and Rural Development and China's General Administration of Customs on phytosanitary requirements for fresh coconuts has further facilitated access to the Chinese market, home to 1.4 billion people.
Source: Vietnam Investment Review