Vietnam's coconut prices plummet during the off-season, quality varies leading to frequent returns in the Chinese market.

A coconut farmer in Vinh Long Province said that the coconuts are already ready for harvest, but traders are offering only 40,000 VND per dozen (12 pieces), while in August, prices were as high as 100,000 to 130,000 VND per dozen. He said that since the beginning of the year, coconut farmers have had good profits, but weak market purchases towards the end of the year have caused a sharp drop in prices.

Most coconut plantations in the western part of Vietnam are experiencing similar situations. Traders and export companies said that the current purchase price for first-grade coconuts is 40,000 to 50,000 VND per dozen, which is consistent with the off-season levels of previous years.

A report from the Import and Export Bureau of the Ministry of Industry and Trade of Vietnam pointed out that the drop in coconut prices is not only happening in Vietnam but also in Thailand. At the end of October, the price of fresh coconuts in Songkhla Province, Thailand, was only equivalent to 1,300 to 2,100 VND per piece, even lower than the production cost. The department said that inconsistent coconut quality and difficulties in market access are the main challenges faced by Thai coconut farmers, forcing Thailand to seek solutions to stabilize prices and enhance its competitiveness in the Chinese market.

Cao Ba Dang Khoa, Vice President and Secretary General of the Vietnam Coconut Association, said that apart from seasonal factors, the sharp drop in fresh coconut prices is also due to the "market shock" caused by the rapid growth of exports. He said, "Many companies are purchasing large quantities of coconuts, but the screening is not strict, leading to coconuts of varying sizes and tastes being mixed in containers and exported to China. Some batches of coconuts are returned, forcing traders to sell them domestically at low prices."

Khoa said that during his recent trip to China, a representative from the Pingxiang Fruit Association reported that many batches of Vietnamese coconuts were returned due to issues such as uneven sweetness, lack of traceability information, or planting area codes. He added, "Customers in Shanghai or Beijing are willing to pay a high price for coconuts, but if the quality is unstable, Vietnamese companies will find it difficult to maintain their market share."

The Vietnam Coconut Association believes that international market demands for coconuts are increasing, as the quality requirements for fresh coconuts, which are consumed directly, are much higher than those for processed coconuts. Currently, the retail price of fresh coconuts in the Beijing market is about 90,000 VND per piece (24.3 yuan), while the price in the United States is as high as 120,000 VND (32.4 yuan). Importers only select coconuts from planting areas with international certification and sustainable production.

Most coconut planting areas in Vietnam are still in a spontaneous state, with an oversupply of coconuts on one hand and a severe shortage of products that meet export standards on the other. Khoa suggested re-planning the planting areas, applying traceability technology, and clearly labeling the planting area codes, quality indicators, and cultivation records. He emphasized, "Thailand is able to export fresh coconuts to Europe at a price of 4.39 USD per piece due to its strict management of planting areas. Vietnam needs to follow this practice to achieve sustainable competitiveness."

According to customs statistics, in the first nine months of this year, Vietnam exported fresh coconuts worth 138 million USD, an increase of nearly 17% year-on-year. The export value of processed coconuts reached 260 million USD, an increase of 55% year-on-year. However, with the sharp drop in prices, the number of enterprises participating in export purchases has decreased by about 30%.