In recent years, Vietnam has expanded to other markets, with the US and EU playing an increasingly important role.
According to the Food and Agriculture Organization of the United Nations (FAO), global demand for tropical fruits is rising. During 2001-2010, world fruit consumption increased by an average of 3.6% annually, while world production only increased by 2.8%. Four main fruits are bananas, pineapples, mangoes and papayas, with the US and EU as the main importers.
Europe is the world's largest importer with 8.4 million tonnes per year. The most imported product in this market is bananas, accounting for 65% of total EU imports. According to Mr. John Hey, Editor-in-Chief of Fruitnet Asia, following the convenience trend, ready-cut products and pre-packaged items will grow strongly. The second largest import market in the world is the United States. On average annually, the US consumes about 12 million tonnes of fresh fruit, mainly oranges, grapes, apples, bananas, and pineapples. Of this, the US can produce 70% and must import 30% of total consumption.
These are two markets assessed as having great potential. However, to enter these two markets, Vietnamese fruits currently face many barriers related to quality standards, food safety and hygiene, and competition with low-priced products from countries like Thailand and China...
According to Mr. John Hey, today food safety and hygiene is listed as a top priority. Among these, traceability is a customer concern and GlobalGAP is the minimum standard. The EU market specifically adds retail standards such as MRLs for maximum residue limits, BRC for post-harvest standards... Ethical and environmental issues are also raised such as corporate social responsibility, responsibility for the supply chain...
This editor-in-chief predicts that in 5-10 years, the EU market will become more complex due to too many regulations. Standards will become stricter around food safety, corporate social responsibility, along with pressure from consumers and non-governmental organizations.
Similarly, the US is rated by him as a high-value market but difficult to penetrate. This market imposes strict phytosanitary standards, requiring irradiation treatment for tropical fruits with high treatment costs that can affect fruit quality. Consumers are concerned about food safety, so demand for organic products will increase.
Another obstacle for Vietnamese fruits is that fresh fruit and vegetable exporters must deal with maintaining quality to these distant markets. For example, dragon fruit to the EU takes 15 days, then is sold in supermarkets for 7-10 days. The total time for dragon fruit to reach consumers is 25 days while this variety only maintains good quality for 20 days. Air transport is expensive, while sea transport affects product quality or leads to irregular delivery. To address this issue, Vietnam needs to improve product storage and shorten delivery times.
Mr. John Hey believes that Vietnamese fruits clearly have opportunities in Europe and the US. Because Vietnam can produce certain fruits year-round such as dragon fruit and pomelo. At the same time, there are specialty tropical fruits that are exotic and attractive to consumers' needs for novelty and new experiences. He pointed out that besides pomelo, other key products with opportunities include dragon fruit, mangosteen, mango, and longan. At the same time, lower labor costs can be a lever for increasing product value right at the source of supply, such as pre-cut processing.
However, to succeed in these markets, Vietnamese fruits need to meet standard requirements and market demand, with full product traceability. At the same time, they must be able to meet sufficient and continuous quantities, have an efficient transport system, establish large production organizations...
Specifically for the US market, according to Mr. Nguyen Huu Dat, working at the Post-Import Plant Quarantine Center 2 (Plant Protection Department), besides dragon fruit which has already gone to the US, the second group of fruits for export to the US includes longan, lychee, and rambutan. Vietnam is currently preparing preconditions such as production areas and standard packaging facilities for these three fruits. At the same time, the mango and star apple group is also expected to receive export permits in 2012. Vietnam is currently preparing information to provide to the US for risk analysis, such as the list of pests on these two fruits.
According to the Food and Agriculture Organization of the United Nations (FAO), global demand for tropical fruits is rising. During 2001-2010, world fruit consumption increased by an average of 3.6% annually, while world production only increased by 2.8%. Four main fruits are bananas, pineapples, mangoes and papayas, with the US and EU as the main importers.
Europe is the world's largest importer with 8.4 million tonnes per year. The most imported product in this market is bananas, accounting for 65% of total EU imports. According to Mr. John Hey, Editor-in-Chief of Fruitnet Asia, following the convenience trend, ready-cut products and pre-packaged items will grow strongly. The second largest import market in the world is the United States. On average annually, the US consumes about 12 million tonnes of fresh fruit, mainly oranges, grapes, apples, bananas, and pineapples. Of this, the US can produce 70% and must import 30% of total consumption.
These are two markets assessed as having great potential. However, to enter these two markets, Vietnamese fruits currently face many barriers related to quality standards, food safety and hygiene, and competition with low-priced products from countries like Thailand and China...
According to Mr. John Hey, today food safety and hygiene is listed as a top priority. Among these, traceability is a customer concern and GlobalGAP is the minimum standard. The EU market specifically adds retail standards such as MRLs for maximum residue limits, BRC for post-harvest standards... Ethical and environmental issues are also raised such as corporate social responsibility, responsibility for the supply chain...
This editor-in-chief predicts that in 5-10 years, the EU market will become more complex due to too many regulations. Standards will become stricter around food safety, corporate social responsibility, along with pressure from consumers and non-governmental organizations.
Similarly, the US is rated by him as a high-value market but difficult to penetrate. This market imposes strict phytosanitary standards, requiring irradiation treatment for tropical fruits with high treatment costs that can affect fruit quality. Consumers are concerned about food safety, so demand for organic products will increase.
Another obstacle for Vietnamese fruits is that fresh fruit and vegetable exporters must deal with maintaining quality to these distant markets. For example, dragon fruit to the EU takes 15 days, then is sold in supermarkets for 7-10 days. The total time for dragon fruit to reach consumers is 25 days while this variety only maintains good quality for 20 days. Air transport is expensive, while sea transport affects product quality or leads to irregular delivery. To address this issue, Vietnam needs to improve product storage and shorten delivery times.
Mr. John Hey believes that Vietnamese fruits clearly have opportunities in Europe and the US. Because Vietnam can produce certain fruits year-round such as dragon fruit and pomelo. At the same time, there are specialty tropical fruits that are exotic and attractive to consumers' needs for novelty and new experiences. He pointed out that besides pomelo, other key products with opportunities include dragon fruit, mangosteen, mango, and longan. At the same time, lower labor costs can be a lever for increasing product value right at the source of supply, such as pre-cut processing.
However, to succeed in these markets, Vietnamese fruits need to meet standard requirements and market demand, with full product traceability. At the same time, they must be able to meet sufficient and continuous quantities, have an efficient transport system, establish large production organizations...
Specifically for the US market, according to Mr. Nguyen Huu Dat, working at the Post-Import Plant Quarantine Center 2 (Plant Protection Department), besides dragon fruit which has already gone to the US, the second group of fruits for export to the US includes longan, lychee, and rambutan. Vietnam is currently preparing preconditions such as production areas and standard packaging facilities for these three fruits. At the same time, the mango and star apple group is also expected to receive export permits in 2012. Vietnam is currently preparing information to provide to the US for risk analysis, such as the list of pests on these two fruits.