Vietnam's Processed Fruit and Vegetable Exports Reach All-Time High of Over 1 Billion USD

According to the latest data released by the Vietnam Fruit and Vegetable Association, Vietnam's exports of processed fruit and vegetable products exceeded 1 billion USD by the end of 2023, marking the highest level to date.

According to the Vietnam Fruit and Vegetable Association, processed fruit and vegetables currently account for approximately 21% of the total export value of the sector, with major markets including the United States, Europe, Japan, and South Korea. Recently, China has also become an important market for importing these products.

The main processed fruit and vegetable products from Vietnam include mangoes, cucumbers, cashews, peanuts, canned fruits, bottled juices, among others, which have experienced a growth rate of 22-60% compared to the same period last year. Improved quality and quantity of raw materials, coupled with a series of free trade agreements, have contributed to the sustained growth of this industry.

Explaining the surge in processed fruit and vegetable exports, Mr. Dang Phuc Nguyen, Secretary General of the Vietnam Fruit and Vegetable Association, stated that Vietnam has signed 16 free trade agreements to date. These agreements have provided favorable customs duties for goods, including some markets with zero tariffs. This competitive advantage has benefited the processed fruit and vegetable industry.

The proportion of processed fruits and vegetables in Vietnam is still low, so the development potential is still very large.

Furthermore, the COVID-19 pandemic has highlighted the challenges of exporting fresh agricultural products in the long term. Processed agricultural products, on the other hand, have the advantage of being able to reach further distances and are less dependent on transportation, while consumer demand for such products is increasing.

However, according to Mr. Nguyen, the majority of processed agricultural products, especially frozen ones, from Vietnam are sold in international markets as raw materials for further processing into food and beverages. This has resulted in the Vietnamese fruit and vegetable brand being relatively less known.

According to the Ministry of Agriculture and Rural Development, the volume of processed fresh fruits accounts for a low proportion, approximately 4.5 million tons (equivalent to 14%) out of the annual harvest volume of 31 million tons.

Currently, Vietnam has 150 modern fruit and vegetable processing factories with a processing capacity of nearly 1.1 million tons per year. However, these factories only process around 8-10% of the annual fruit and vegetable production. Therefore, there is still great potential to boost the processed fruit and vegetable industry in Vietnam.

It is forecasted that this year, exports of processed fruit and vegetables will continue to grow at a rate of approximately 20-25%.

Source: Tien Phong Newspaper