Coconut industry at risk of serious raw material shortage in Vietnam

Published 2024년 12월 14일

Tridge summary

The Vietnam Coconut Association is expressing concern over the significant decline in the domestic price of coconuts, which has reached a record low of 1,000 VND per fruit, leading to reduced farmer morale and reduced operating capacity for processing enterprises. The association attributes this issue to the current 0% export tax on dry coconut materials, which encourages the export of raw materials, thereby harming the local processing industry. The industry also faces challenges such as decreasing quality of raw materials and changing weather conditions. To ensure the industry's long-term growth, the association emphasizes the need for reasonable tax policies, cooperation among businesses, and the development of a sustainable coconut value chain. Additionally, logistics plays a crucial role in enhancing the industry's competitiveness, with sea transport and improved cold chains aiding the export of Vietnamese coconuts to China and other regions.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

This is the warning of Ms. Nguyen Thi Kim Thanh, President of the Vietnam Coconut Association, at the forum "Connecting production and consumption of coconut products" in Ben Tre on December 13, organized by the Department of Quality, Processing and Market Development and the Agriculture newspaper. According to Ms. Thanh, the domestic price of coconuts once fell to a record low, only 1,000 VND per fruit, making farmers discouraged and afraid of this tree. Meanwhile, many processing enterprises are forced to operate at a low capacity, with a capacity of only 10-15% due to a lack of raw materials. Another serious problem is that many enterprises have primary processing facilities in Vietnam but export raw materials to other countries, especially China, for deep processing. The President of the Vietnam Coconut Association said that the cause comes from the policy of 0% export tax on dry coconut materials, creating a great advantage for exporting raw materials but causing heavy ...

Source: VNExpress