Vietnam's coconut exports surpassed US$1 billion last year, driven by a new protocol with China and efforts to diversify markets. According to Vietnam Customs, exports of all coconut products increased by 20% to nearly $1.1 billion, with fresh coconuts alone rising 61% to $390 million.
Vietnam, with 200,000 hectares dedicated to coconut farming, produces 2 million tons annually. One-third of this output meets the organic standards of the U.S. and Europe. The country has over 600 companies involved in coconut production and processing, ranking fifth globally in coconut exports.
China accounted for 25% of Vietnam's coconut exports, facilitated by a protocol on fresh coconuts signed in August last year. This development has positioned Vietnam as the third-largest coconut supplier to China, holding a 20% market share. Other major export destinations include the E.U., the U.S., Canada, and South Korea.
However, future supply may face challenges as farmers have been hesitant to expand their farms in recent years. Additionally, competition with exporters from Thailand, India, and the Middle East, along with the growth of processing factories in China, presents further obstacles. Cao Ba Dang Khoa, General Secretary of the Vietnam Coconut Association, highlighted these issues and urged the government to negotiate with China to include more farming areas in Vietnam for approved shipments.
Source: VNExpress