Vietnamese Mango Exports Nearly Doubled in 2021 but off to a Difficult Start in 2022

Vietnam exported more than 600,000mt of mangoes in 2021 worth USD 310 million. The export value indicates a 71.46% YoY increase compared to the USD 180.8 million exported in 2020. Exports were destined for 53 countries and territories with mangoes shipped to among others Russia, the US, South Korea, the European Union, Australia, and China. Shipments to Japan, which is a small but growing market, tripled to 640 tons. China is the largest consumer of Vietnamese mangoes, accounting for 83.95% of the total export volume in 2020.

The free trade agreements Vietnam signed in recent years are helping it access new markets, to increase the export volume and reach of mangoes. Vietnam has around 87,000 hectares of mango producing areas, with the Mekong Delta accounting for 48% of the country’s total production area. The area under mangoes has increased in recent years and new plantings are in the works due to favourable export prices. Mangoes can be grown in Vietnam throughout the year with minimum quality fluctuations, allowing producers to supply buyers year-round. Producers have also moved to grow mangoes according to VietGAP and GlobalGAP standards, helping to generate high-quality products for export.

By all accounts, 2022 is set to be a stellar year for Vietnamese mango exports. However, the year is not off to a great start with fruit and vegetable exports, including mangoes, down 12.3% to USD 493 million during January and February 2022 compared to the same period last year. Export-reliant mango producers are struggling with low selling prices that are running nearly 70% below normal owing to difficulties exporting to the key market of China. Typically in April, Vietnam would be buzzing with buyers, for export to China. However, in 2022, the mangoes are ripe but traders are not buying the produce. This is most likely due to China’s strict COVID-19 border controls which have caused intermittent closures and long delays at ports of entry. This is especially true for the overland border crossings typically used to ship Vietnamese mangoes to China.

The lack of market access to China and the subsequent oversupply of mangoes are causing prices to plummet. Historically, Australian-bred varieties such as Kensington Pride and R2E2, which are favoured by Chinese consumers, sell for USD 1.52 to 1.74/kg with prices sometimes reaching highs of USD 2.18/kg. The new outbreak of COVID-19 in China at the start of March 2022 has put significant downward pressure on Vietnamese mango prices with the trend continuing into April. Since the start of April 2022 mangoes have been trading at a farm gate price ranging from USD 0.44 to 0.52/kg.

These low prices come after mango producers in Vietnam have already experienced increased input costs especially in fertiliser, fuel, and agrochemicals during the 2022 production season which are the result of COVID-19-related supply chain issues and inflationary pressures exacerbated by the Russia-Ukraine war. Many growers have reportedly given up on trying to harvest their mangoes because the low prices do not cover the labour and transportation costs. Local authorities are discouraging producers from leaving ripe mangoes on the trees to fall to the ground as rotting fruit on the ground allows the fruit fly life cycle to continue unabated causing orchard sanitation issues and phytosanitary problems for future harvests.

Under these difficult export conditions, Vietnamese producers should consider departing from an overreliance on China and pursue diversification opportunities by utilising the existing FTAs and short shipping routes to important markets such as South Korea, Japan, Singapore, and Australia. New Zealand is also a potential new opportunity with the two governments agreeing to increase agricultural cooperation in April 2022. The Iranian market is also open to receiving mangoes from Vietnam. These markets will become increasingly important as Vietnam aims to grow its mango exports. Vietnam plans to increase its hectarage under mangoes from 87,000 hectares to 140,000 hectares and produce 1.5mt million annually by 2030. The country also plans to double its mango export value from USD 310 million in 2021 to US$650 million by 2030, taking advantage of growing global demand.