After durian, fresh coconut is expected to be the next fruit to be exported to China under official quotas. Vietnam’s Ministry of Agriculture and Rural Development (MARD) has had working sessions with the Chinese side, and they agreed to complete procedures for signing a protocol on phytosanitary requirements for Vietnam’s fresh coconut exports to China. 

Around 200,000 hectares of coconut growing area in Vietnam gives total output of 2 million tons a year. The country ranks seventh in the world in coconut output. Growing areas are mostly located in coastal provinces of the central region and Mekong Delta.

Vietnam’s coconuts are exported to 90 countries and territories, including Europe, the US, the Middle East, Japan and South Korea. In 2023, Vietnam’s peeled fresh coconut and processed product exports brought turnover of $243 million.

Dang Phuc Nguyen, secretary general of the Vietnam Fruit and Vegetables Association (VFVA), said, with a population of 1.4 billion, China is one of the largest markets in the world. The protocol on Vietnam’s official-quota export to China will be a great opportunity for Vietnam’s coconut sector. With short geographical distance, short transport time and low costs, Vietnam’s coconuts will be competitive in the Chinese market.

Tran Van Duc, president of Ben Tre Coconut Investment JSC, confirmed that China is a market with great potential as it consumes 2.6 billion fresh coconuts and 1.5 billion coconuts for processing each year. Chinese coconut output can satisfy only 10 percent of demand. 

He said some Chinese partners have contacted him to learn about his company’s production capacity. He said that all the Chinese requirements on material growing areas and packaging can be met, because his company has been exporting fresh coconuts to many other markets for years.

He estimated that if a protocol is signed and businesses can exploit their advantages, Vietnam can earn $300 million more from the Chinese market, and its coconut sector will be able to catch up with Thailand in several years.

Thai concerns

Amid the information about Vietnam’s fresh coconut exports to China, Thai media reported that the Thai coconut milk industry, valued at billions of dollars, may be shaken if it has to compete with Vietnam in China.

Narongsak Chuensuchon, CEO of NC Coconut, said both coconut and coconut milk are very popular worldwide, but China consumes more than 60 percent of Thai processed coconut output, with annual revenue of $550 million of bottled coconut milk. 

He said that, like durian, Vietnam's coconut milk exports to China will compete with Thai products in the Chinese market, and if Thailand cannot improve product quality, it may lose the Chinese market to Vietnamese.

Vietnam’s durian exports to China continued to see a boom in the first six months 2024, bringing turnover of $1.32 billion, a sharp increase of 45 percent over the same period last year.

Thailand dominated the Chinese durian market until Vietnam obtained the right to enter the vast market. As Vietnam has succeeded in exporting durian in large quantities to China, Thailand’s market share in China has dropped significantly from 95 percent of China’s imports in 2022 to 65.1 percent in 2023. 

In the first four months of the year, Thailand’s durian market share in China decreased further to 60 percent, while Vietnam’s proportion in Chinese durian imports increased to 39.2 percent.

Meanwhile, Nguyen of VFVA warned that Thailand’s coconut industry is still very strong. One Thai fresh coconut is selling for VND50,000 in China. Vietnam’s coconut is cheaper with prices sometimes dropping to VND2,000-3,000 per coconut, so it is competitive in price. However, if Vietnam wants to enter the Chinese market, it needs to ensure the high quality of products and satisfy the requirements set by the market.

He said that once Vietnam exports fresh coconuts via official channels, fresh and dry coconut prices in the domestic market will increase, thus bringing higher benefits to farmers.

Tam An