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Product: Vietnamese Coconut Type: Sweet Coconut (Large Size) Specifications: Sweet coconut, lots of water, fragrant, not crushed, damaged Packing: 9 fruits/carton

Fresh coconut products continue to consolidate exports in traditional markets, while expanding and promoting global logistics service connections and penetrating many new markets. Therefore, coconut exports are on the rise and are a potential export sector for Vietnam.

According to businesses, signing the Protocol on official coconut exports to China will help this product have the opportunity to surpass the 1 billion USD mark in the near future, while opening up "profitable" opportunities for many key coconut localities. Leaders of the Ministry of Agriculture and Rural Development (MARD) recently had a working session with the General Administration of Customs of China. According to the MARD, the two sides agreed to soon complete the procedures to sign a Protocol on phytosanitary requirements for fresh coconuts and frozen durians exported from Vietnam to China. In particular, the two sides have initialed the conclusion of negotiations on the protocol requiring phytosanitary measures for fresh coconut exports from Vietnam to China. After this news, Vietnamese businesses were very excited when the market of 1.4 billion people was opened.

Competition from Malaysia and the future of Vietnamese durian Apart from Thailand, Vietnam also faces competition from Malaysia, which was allowed to export fresh durian to China in June 2024. Previously, China allowed imports of Malaysian durian powder and paste in 2011 and frozen durian in 2018. Although Malaysian durian is more expensive than Thai and Vietnamese durian, it is appreciated for its variety of flavors. However, Malaysia currently does not have enough supply to meet the large demand of the Chinese market, with Thailand still maintaining its position as the main supplier. Lim Chin Khee, an advisor to the Durian Academy, said Malaysia will have difficulty competing in volume with Thailand and Vietnam, but can make a mark through product quality. China's economy is facing many challenges in 2024, leading to a decline in consumer confidence and falling commodity prices, including durian. In April 2024, the import price of durian from Thailand was 5.80 USD/kg, while that of Vietnamese durian was 4.22 USD/kg. The decrease in durian prices is beneficial to consumers but puts pressure on exporters. Moreover, fierce competition from Vietnam has also caused durian prices in China to drop significantly, with some places selling for only 10 yuan per half kilogram. This creates opportunities for consumers but also poses a big challenge for exporters, as they have to balance quality and price to maintain market share. To maintain and improve competitiveness, experts say Vietnam needs to implement a number of important strategies. First of all, improving product quality is a key factor. Measures such as granting codes to growing areas, controlling quality from production to export, and ensuring compliance with international standards are necessary to maintain the reputation of Vietnamese durian. According to the head of the Ministry of Agriculture and Rural Development of Vietnam, the immediate task is to turn durian into a national product, building a comprehensive policy that includes farmers, businesses, science, technology and infrastructure. In addition, product diversification is also a potential direction. Minister Le Minh Hoan said that Vietnam has signed the second Memorandum of Understanding with China on processed durian, including durian pulp, durian seeds and frozen durian. This is an important step to diversify products and increase added value, while reducing pressure on harvest season. Frozen durian and durian-based products are considered high value-added products, helping to reduce the pressure of harvest season and increase export value. It is expected that Vietnam's frozen durian exports could reach a turnover of 400-500 million USD in 2024 - the first year after signing the protocol, and could quickly become a billion-dollar agricultural export product in 2025.

Challenges from Thailand and Vietnam's efforts to increase market share Thailand has established a strong position in exporting durian to China. In the second quarter of 2024, durian imports from Thailand reached nearly US$2.67 billion, accounting for 75% of China's total durian imports. This is a strong growth compared to 42.5% in the first quarter of the year. The main reason for Thailand to maintain this position is that the Thai durian harvest coincides with the second quarter, when demand in China increases. Moreover, Thailand quickly overcame the difficulties caused by heat and drought in May 2024 - causing durians to crack on the trees, ensuring a stable supply to the Chinese market. Data from July shows that Thailand's fresh durian imports were US$363 million and Vietnam's exports were US$270 million. In the four-month period ending in July, Thailand exported 609 million kg of durian, far exceeding Vietnam's 296 million kg. According to experts, the consistent taste and strong brand of Thai durian have contributed to its popularity among Chinese consumers. Despite Thailand's dominance, Vietnam has shown a strong rise in durian exports to China. Since being licensed to export fresh durian in 2021, Vietnam has quickly become the second largest durian supplier to China. In 2023, Vietnam exported about 500,000 tons of durian, worth US$2.3 billion, of which 90% went to China. Vietnam has a big advantage thanks to its low production costs and the ability to transport it quickly across land borders, which allows Vietnamese durian to often be cheaper than Thai durian in the Chinese market. However, product quality remains a major challenge for Vietnam. In June 2024, China temporarily suspended durian imports from 33 Vietnamese suppliers, including 18 durian growing areas and 15 packaging factories, due to the detection of heavy metal content exceeding the permitted level. This suggests that competitive pressure may have caused some producers to pursue quantity at the expense of quality, damaging the reputation of Vietnamese durian. Nguyen Thanh Trung, a political science expert at Fulbright University Vietnam, warned that increasing production without quality control could cause long-term damage to the reputation of Vietnamese durian. This requires Vietnam to focus on improving product quality and strictly complying with international standards to maintain its market share in China. The import suspension has raised concerns about the future of Vietnamese durian in the Chinese market. Although Chinese officials have stressed their desire to continue cooperation and promote imports from Vietnam, the incident has raised urgent demands for quality improvement and compliance with international standards. Speaking at the National Assembly forum on August 21, Minister of Agriculture and Rural Development Le Minh Hoan admitted that Vietnam is currently lagging behind Thailand and Malaysia in exporting durian to China.

Vietnam is trying to increase its market share in durian exports to China, the world’s largest durian consumer. However, fierce competition with Thailand – a traditional and long-standing supplier – is posing many challenges for Vietnamese businesses. China is now the world's largest importer of durian, with growing demand for the fruit with its distinctive flavour. Not only is durian popular in cuisine, it is also a popular gift for special occasions such as weddings. With strong consumption, China has become an important target for durian exporting countries, especially Thailand and Vietnam. In 2023, China imported about 1.4 million tonnes of durian, with Thailand dominating, holding 68% of the market share. However, Vietnam has quickly emerged as a major competitor, capturing a significant portion of the durian export market to China.