The Ministry of Agriculture and Rural Development (MARD) reported that Vietnam’s farm exports brought turnover of $53.1 billion in 2023, a slight decrease of 1.2 percent from the year before. China, the US, Japan, the EU and ASEAN continued to be the five largest export markets for Vietnam.

Exports to China broke record in 2023

However, except China, all key export markets witnessed negative growth rates.

The farm produce export turnover to China increased by 17 percent over 2022 and accounted for 23 percent of Vietnam’s total farm export turnover, which allowed China to surpass the US to become the biggest clients of Vietnam’s farm produce.

Meanwhile, farm exports to the US dropped sharply by 16 percent, accounting for 21 percent of total farm export turnover. As such, after many years of being in the first position, the market has fallen by one grade on the list of Vietnam’s biggest farm produce consumers.

In 2023, China spent $12.2 billion to import Vietnam’s farm and seafood products. Chinese businesses placed big orders for certain fruits at record high prices.

Vietnam’s fresh durian exports brought record high turnover of $2.3 billion, of which the 1.4 billion consumer market of China accounted for 90 percent of total export turnover.

The high exports to China helped Vietnamese farmers make a fat profit. Ri6 durian is selling at VND85,000-106,000 per kilogram, while Monthong durian was VND137,000-160,000 per kilogram.

With the prices, farmers pocketed VND1-1.5 billion per hectare of durian growing area.

China consumed 55.8 percent of Vietnam’s vegetables and fruits in 2023.

It spent $1.19 billion to buy cassava and cassava-made products, or 91 percent of Vietnam’s export turnover of this product. Rubber exports to China brought $2.27 billion, or 78.5 percent.

The other farm exports also brought high turnover from China, including rice (up 19.6 percent), cashew nuts (55 percent), and coffee (10.3 percent). China was the third biggest export market for Vietnam’s seafood and rice products.

A boom expected in 2024

Farm produce-laden trucks are heading for border gates in LangSon and LaoCai these days, just a couple of weeks before Tet holiday. The produce will be exported to China across border gates to satisfy increasing demand in China ahead of the lunar new year holiday.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien commented that China is a key market for Vietnam and Vietnamese farmers and exporters are expecting a boom in 2024.

Vietnam and China have signed a number of protocols on officially opening the Chinese market to some Vietnamese farm produce. The two countries are going to sign more protocols to pave the way for the export of other farm produce in the time to come, including frozen durian, fresh coconuts, seafood, chili and medicinal herbs. Vietnam is also gearing up to prepare dossiers for the opening of the market for citrus fruits such as mandarins, oranges and pomelos.

Most recently, China allowed seven Vietnam’s salangane nest companies to export to the market through official channels.

Nguyen Khac Tien, chair of Ameii Vietnam JSC, said when joining the MARD’s trade promotion delegation recently, he met Chinese processed durian import companies and found high demand in the market. The exports of processed products will help Vietnam increase the value of this fruit specialty.

Tien said that 2023 was the year for Vietnam’s vegetable and fruit exporters to activate the Chinese market, while 2024 would be the year to accelerate exports to the market. Vietnam still has many other fruits are waiting for Chinese market opening.

Nguyen Dinh Tung, CEO of Vina T&T, confirmed that the company has taken big orders from Chinese partners and Tung plans to expand its market share in China. The company hopes it can obtain a growth rate of 20 percent in 2024. If Vietnam can export products in large quantities, the profits would be high. 

Tien said with the population of 1.4 billion, the number of middle-income earners in China is increasing rapidly. China is a vast market for many high quality farm, forestry and seafood products from Vietnam.

Tam An