New Zealand apple exporters are focusing on Vietnam's expanding economy, leveraging the relationship with the Socialist Republic of Vietnam as both "friends" and business partners. As New Zealand's apple crop reaches international markets, exporters aim to tap into Vietnam's growing consumer base.
Vietnam is recognized as the fastest-growing economy in Southeast Asia, with two-way trade with New Zealand valued at $2.68 billion, reflecting a 40% growth over the past five years. Horticultural imports and exports between the two countries complement each other due to climatic conditions. Last year, New Zealand fruit companies exported $172 million worth of fruit, primarily apples, followed by kiwifruit and cherries, to Vietnam, according to Ministry for Primary Industries data.
Hawke's Bay-based Mr Apple, owned by Scales Corporation, exports about a quarter of New Zealand's $932 million apple export trade annually. Ben McLeod, head of sales and marketing, noted Vietnam's rapid economic growth. "Many people say Vietnam is like the new China just maybe 10 years behind," McLeod said. He highlighted the importance of free trade agreements, which provide leverage against competitors like Chile and South Africa.
Nelson apple exporter Heartland Fruit has increased its apple exports to Vietnam since sending its first container in 2012, reaching over 100 containers in 2024, valued at $7.83 million. Heartland Fruit's sales and marketing manager, Brendon Osborn, emphasized the competitive nature of the market and the focus on premium quality. "It's become very competitive, and I think that's because there's just a huge influx of apples into that market," Osborn said.
Prevar, an industry-owned company in Hawke's Bay, is focused on developing apple and pear varieties for licensee growers. CEO Tony Martin noted the need for investment in marketing and quality to expand in Vietnam's market of 100 million people. "New Zealand's not a scale producer. We have made ourselves successful through quality and premium products," Martin said.
Fresh produce company T&G Global expanded its apple distribution in Vietnam following a diplomatic visit led by Prime Minister Christopher Luxon. A comprehensive strategic partnership was signed, making New Zealand one of 12 countries with such a partnership with Vietnam.
New Zealand's Trade and Investment Minister of State, Nicola Grigg, stated the country's position to capitalize on Vietnam's demand for high-value food. "As Vietnam gets wealthier, Vietnamese people want to buy high-quality products from around the world," Grigg said.
Source: RNZ