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Vietnam Expands Citrus Exports to the EU and China

Fresh Pomelo

Market Intelligence Analytics Team

Published Nov 5, 2020

Vietnam’s citrus exports have been growing consistently in the global market, and within the Vietnamese citrus industry, grapefruit and pomelo producers are holding high hopes as the fruits expand to new export destinations in the EU, US, and potentially to China.

Vietnam’s citrus exports have been growing consistently in the global market, reaching an export value of USD 38 million in 2019. Between 2015-19, the export value has grown by 18 percent, with quantity exported also seeing a similar increase of 21 percent. Within the Vietnamese citrus industry, grapefruit and pomelo producers have high hopes as the fruits expand to new export destinations in the EU, US, and potentially to China.

Grapefruit Enters the EU Market Under the EVFTA

The EVFTA came into effect on August 1st, and citrus exports are expected to make large gains through the agreement. For the first time, exports of grapefruit and pomelos were officially allowed into the European market, a market with great potential for these fruits. The EU is one of the largest importers of fresh grapefruit, second to Russia, where the Netherlands alone took up nearly 20 percent of import shares in 2019. The Netherlands is well-known as a gateway for the import and distribution of goods to the rest of Europe, where grapefruit is re-exported to Germany, France, among others.

Consumption within the EU has been holding steady, with minor fluctuations, compared to the declining grapefruit market in the US. Imports for fresh grapefruit are expected to increase for the 2019/20 season, owing to Spain’s lackluster production which has caused the EU’s fresh grapefruit forecasts to decline by 11 percent, according to the USDA. Leveraging the EVFTA, Vietnam will be able to take advantage of the EU’s drop in production this season.

Potential Entry into the Chinese Market

Along with the EU, Vietnam has also been eyeing the Chinese market for grapefruit exports, with grapefruits reportedly a priority fruit up for negotiations for official exports to China, behind durians. Chinese consumption of grapefruit has been growing substantially, where demand is so high that despite increased domestic production over the years, imports are still necessary to match the demand. As of July 2020, Chinese consumption of fresh grapefruit stood at 4.74 million MT, an increase of 11 percent over the past five years.

Graph 1. Production and planted areas of grapefruit (incl. pomelo) in Vietnam, 2013-18.

Source: FAOSTAT.

Improvements in Production and Quality

With the diversification of export markets, Vietnam has taken the steps to bump up production as well as the quality of the fruits. According to the FAO, production for grapefruit and pomelos spiked in Vietnam by 15 percent from 2018 to 2019 alone, and an increase in planted areas by 84 percent during the same period. In light of the fruit’s entrance to a wider market, more growers are starting to switch to organic production. Some traditional growers of sugarcane are also looking to switch to producing pomelos and grapefruits with the growth of the industry and the ease of exportability.

Sources