Philippine supply declines, Vietnamese bananas capture Japanese market

According to Nikkei Asia, Japanese trade statistics show that Vietnam's banana imports surged to 33,000 tons in 2024, a nearly 14-fold increase from 2019, raising Vietnam's market share in Japan from 0.2% to 3.2%.

Although Vietnam holds a small share of Japan's total banana imports, the surge in imports is eroding the long-standing dominance of Philippine bananas. The latter's market share has fallen from around 90% in the early 2010s to approximately 75% last year. Currently, Vietnam ranks third in banana exports to Japan, behind the Philippines and Ecuador.

Industry insiders attribute Vietnam's rapid rise to its competitive pricing and superior quality. Price displays from a chain supermarket show that Vietnamese bananas retail for about 10% less than those from the Philippines. Meanwhile, thanks to preferential trade terms under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Japan's tariff on Vietnamese bananas is as low as 5.4% and will be completely eliminated by 2028. In contrast, tariffs on Philippine bananas range from 8-18% depending on the season, which may further enhance Vietnam's price advantage in the coming years.