Vietnam’s fruits and vegetable is forecasted to reach $3.6 billion in 2021

, Vietnam’s fruits and vegetable is forecasted to reach $3.6 billion in 2021
  • Vietnam’s fruit and vegetable exports are anticipated to prosper ahead in the fourth quarter of the year and are likely to achieve the export target of between US$3.5 billion and US$3.6 billion, according to forecasts made by the Agro Processing and Market Development Authority.
  • More stories at Vietnam Insider’s homepage.

The country raked in a total of US$1.77 billion from exporting fruit and vegetables during the opening five months of the year, representing an annual increase of 18%.

In terms of the Asian market, China continues to be the largest consumer of Vietnamese fruit and vegetables, accounting for over 60% of the market share, followed by the Republic of Korea (RoK), Japan, and ASEAN member countries.

Local fruit and vegetable exports to these markets therefore enjoy numerous advantages, including a large market size, huge consumption power, similar consumption habits, and a convenient geographical location for transportation.

Furthermore, the import tax rate placed on Vietnamese fruit and vegetable products has also been slashed to 0% due to the enforcement of various Free Trade Agreements (FTAs).

With regard to the European and American market, tariff commitments set out in new-generation FTAs ​​such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam FTA (EVFTA) state that import tariffs placed on fruit and vegetables will be completely abolished.

This move is expected to create greater opportunities for Vietnamese fruit and vegetable exports moving forward due to the country’s fruit and vegetable products in these markets still only accounting for a small proportion.

Nguyen Quoc Toan, director of Agrotrade, said that the export of fruit products such as durians, lychees, mangoes, and dragon fruit will prosper in the near future thanks to the recovery of the consumption demand in the post-pandemic period, coupled with the impact of the implementation of FTAs and trade promotion schemes.

According to expectations set out by the Ministry of Industry and Trade, Vietnamese fruit and vegetable exports are expected to face plenty of hurdles ahead in the third quarter due to the fourth outbreak of the COVID-19 pandemic in the country.

Furthermore, China has just entered their seasonal fruit harvest season, thereby causing a decrease in import demand which may hinder the growth momentum of Vietnamese vegetables and fruits being exported to this market.

Especially, the sector will face numerous challenges due to limited processing capacity, high transportation costs and stringent requirements in terms of Good Agricultural Practices (GAP) certification and planting area codes set by demanding markets such as the EU, the US, Japan, the RoK, Australia, and New Zealand.

By @Dtinews.

News related