Vietnamese Access to Chinese Market may Lead to Increased Dragonfruit Exports

Published 2022년 10월 12일

Vietnam is the 2nd largest exporter of dragon fruit, mainly exporting to countries such as China, Japan, Australia, and the United States. Out of these, China is a crucial trading partner that maintains strict regulations for fruit imports.The border-sharing dragon fruit-producing provinces in Vietnam usually export 80% to 95% of the fruit they produce to China. However, in the last two years, the exports have decreased significantly due to increased COVID-19 protocols (congested borders lead to decreased exports). Recently, Vietnam’s Ministry of Industry and Trade has negotiated protocols and regulations on exporting fruits with its Chinese counterpart to ensure that trade activities between traders of the two countries occur more efficiently.

Dragon fruit is native to the southern parts of Vietnam, but farmers across the country have started planting the fruit due to its high demand. The fruits are primarily grown for export and based on international certification and phytosanitary requirements. Vietnam exports tropical fruit to countries like China, Japan, Australia, and the United States, which have stringent entry requirements. Dragon fruit is grown in many provinces, but the major producing regions include Binh Thuan (29,000 ha), Long An (11,000 ha) and Tien Giang (8,000 ha), which together account for 93.6% of the area under dragon fruit production and 95.5% of the national dragon fruit output. Binh Thuan, the largest province, exports 85% of its dragon fruit production to China to the Chinese market. At this time, the dragon fruit garden in Tien Giang province is at the end of the favorable season and the fruit is harvested. Similarly, the dragon fruit produced in Long An is mainly consumed in the Chinese market.

Since the last two years, Vietnam experienced difficulties exporting to China due to strict COVID-19 protocols and border checks, which caused congestion and delays. As COVID-19 related measures subside and the transportation systems improve, Vietnam’s exports to China will likely improve as well in the coming months. In addition, in October, most of the dragon fruit orchards are ripe, and the flowering fruit is likely to provide the market with a large output in the next few months, which means ample volume will be available for export. Higher dragon fruit output, along with relaxation in import regulations, is likely to boost Vietnamese exports to China this year.

Vietnam’s Ministry of Industry and Trade, in early 2022, realized that the ability to export dragon fruits to the Chinese market was becoming more and more difficult as they implemented strict regulations on product traceability and food safety. The Plant Protection Department (Ministry of Agriculture and Rural Development) of Vietnam started coordinating with the General Department of Customs of China to negotiate technical exchanges and develop protocol for eight types of fruit officially exported to China, which includes dragon fruit. The stipulation of these protocols will help trade activities between traders of the two countries to take place more efficiently, keeping in mind the quality parameters of the fruit. The current dynamics clearly indicate that not only is the dragon fruit trade between Vietnam and China going to increase, but the ease of doing the trade will also improve.