Khanh Hoa Bird’s Nest Company’s entry into the Chinese market marks a significant milestone for Vietnam’s bird’s nest industry.
Editorial note
Vietnam's economic growth recovery in the first half of 2024 is evident, with GDP in the second quarter reaching nearly 7%, bringing GDP growth in the first half to 6.42%.
Contributing to this recovery is the significant rise of several localities, including Khanh Hoa's remarkable rebound after two years of struggling due to the Covid-19 pandemic. Changes in mindset and actions, along with the ability to embrace the 'green' trend, have led to impressive growth figures and numerous innovations in this locality.
The series "Khanh Hoa Reinvents Growth Drivers" by VietNamNet describes this locality's journey of overcoming difficulties and seizing new trends.
“No need for much explanation, Chinese buyers see it and they buy it”
Leading a tour to inspect dozens of production lines at the Sanvinest Khanh Hoa Raw Material Processing Factory, Chairwoman Trinh Thi Hong Van explained that from the bird’s nest to the finished product before hitting the market, there are many stages involved.
In recent days, all production lines and the factory's 1,200 workers have been operating at full capacity, processing 10 tons of raw bird’s nest into more than 20 different products, such as natural bird’s nests, processed nests, bird’s nest essence, and bird’s nest drinks.
“The raw bird’s nest is sourced from affiliated and joint-venture birdhouses where our company has transferred technology for bird’s nest farming, not imported goods. Each product carries a QR code so customers can trace its origin to the birdhouse and harvest date,” she added.
Chairwoman Trinh Thi Hong Van has exported bird’s nest products to many countries worldwide (Photo: Xuan Ngoc)
To date, aside from the domestic market, the company's bird’s nest products have been exported to various countries, especially demanding markets like the US, Australia, Canada, and Japan. Notably, late last year, bird’s nest products were officially exported to China thanks to a signed protocol, rather than through unofficial channels as before.
Having exported products to international markets for many years, the chairwoman of Khanh Hoa Bird’s Nest Company shared that selling in Western markets is not easy. Consumers in these markets are often unfamiliar with the product. Despite being introduced as a super-nutritious health food; many Western customers remain skeptical due to their lack of understanding of its benefits.
In contrast, China is the largest market for bird’s nests globally. According to statistics, in 2020, China imported 220 tons of bird’s nests officially. By 2021, this increased to over 300 tons, and in 2022, it reached 452 tons—equivalent to over 8 billion USD, capturing 80% of the global market share.
“Chinese consumers are very knowledgeable about bird’s nests. To them, it is a premium product often given as gifts during holidays and important events. If there’s a demand, they buy without needing much explanation,” Mrs. Van revealed.
This is also why bird’s nest producers, not only in Vietnam but also in other countries, are eager to enter the Chinese market.
Each product carries a QR code for traceability. (Photo: Xuan Ngoc)
Sanvinest Khanh Hoa is among many companies aiming to boost its exports to this market. Therefore, for several years, the company has been preparing staff fluent in Chinese, with employees trained extensively, understanding the bird’s nest industry, and mastering the extraction and production processes to facilitate negotiations.
However, exporting to China requires high and unique procedural standards.
To export officially, the company must comply with traceability requirements, ensure disease safety, and produce high-quality products according to the importer's specifications.
Additionally, documents and procedures must be precise for the General Administration of Customs of China to evaluate online before granting export permits.
After a period of official exports, Chinese consumers highly value the quality of natural bird’s nests from Khanh Hoa. In fact, compared to countries like Malaysia, Indonesia, or Thailand, Vietnamese bird’s nests are even regarded as “king of bird’s nests” by the Chinese market.
Export orders to China have increased significantly after a protocol was signed between Vietnam and China. (Photo: Xuan Ngoc)
As a result, exporting bird’s nests to China has become increasingly smoother. Since late last year, many orders with Chinese importers have been signed, with some buyers seeking to import tons of bird’s nests.
“We are quickly completing the paperwork to export Sanvinest bird’s nest essence to China and other markets,” Mrs. Van said.
The company’s goal is to significantly increase bird’s nest exports to China this year. In subsequent years, it aims to maintain an export growth rate of 35-40% annually.
Bird’s nest to become a billion-dollar industry
Yet only 4-5 countries worldwide produce and trade bird's nest, including Vietnam. Photo: Xuan Ngoc
Bird’s nest is a super-nutritious food, yet only 4-5 countries worldwide produce and trade this item, including Vietnam. According to Mrs. Van, Vietnam’s long coastline from north to south is ideal for bird’s nest farming and harvesting. Processing bird’s nests is also a strength of Vietnamese enterprises.
Mrs. Van revealed that the company has a research center specializing in new product development and expanding the bird’s nest population through migration and breeding. From initially receiving 8 islands and 40 birdhouses, the company has expanded to 33 islands with 173 birdhouses.
By harvesting from bird islands and satellite birdhouses, the supply of raw materials remains stable, meeting domestic and export demands.
Currently, Vietnam has about 24,000 birdhouses, with an annual bird’s nest production of around 150-200 tons. The strategic plan aims for a national production of 350-400 tons annually by 2030.
“Bird’s nest is a product with significant economic value. Opening the largest market in the world, China, is a tremendous opportunity for bird’s nest enterprises. Therefore, by developing the product well and exploiting markets effectively, bird’s nest could become a billion-dollar export industry in the future,” Mrs. Van said.
However, to achieve this goal, she believes that bird’s nest enterprises, including Sanvinest Khanh Hoa, must grasp consumer preferences in each market.
Vietnamese bird’s nest expected to become a billion-dollar export industry. (Photo: Xuan Ngoc)
Additionally, focusing on production and business operations to create high-quality products that meet modern consumer demands is crucial. Satisfied customers lead to success.
Van cited the rapid development of e-commerce, so besides traditional markets, the company also emphasizes online sales platforms.
This year, the company is constructing a new factory with modern equipment and 4.0 technology to increase productivity, stabilize product quality, and minimize risks.
In response to green consumption trends and reducing greenhouse gas emissions, the company is also adapting. “We are researching and using environmentally friendly packaging; additionally, we are preparing to install rooftop solar panels to provide clean energy for production while reducing environmental emissions,” she added.
The head of Khanh Hoa Bird’s Nest Company believes that digital transformation and green transition are not only development foundations but also ensure the survival of enterprises. Many companies have labeled their products green. If enterprises do not keep up, they will fall behind and be excluded from the global stage.
Khanh Hoa, with its 385 km coastline and 40 rivers longer than 10 km, offers a rich food source for birds and promotes the development of bird nests for harvesting.
Currently, Khanh Hoa is among the top 10 regions with the largest scale of birdhouses in the country. The natural bird’s nests from Khanh Hoa are highly regarded for their quality. After harvesting and cleaning, they can be sold at prices ranging from 68 to 248 million VND per kilogram, depending on the type.
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