In Vietnam, bananas are grown everywhere and are a fruit that always dominates supermarkets and convenience stores. Not only that, currently, Vietnamese bananas exported by Vagrofood to East Asian markets such as China, Japan, and Korea are also very popular.
This shows that the purchasing power of Vietnamese agricultural products, especially bananas, is increasing higher than ever.
Vietnam, China sign fresh-banana deal
The Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China inked a protocol on requirements to export fresh bananas from Vietnam to the northern neighboring market on November 1.
Fresh bananas exported to China will be picked between 10 and 16 weeks after blossoming begins.
Vietnamese producers and exporters like Vagrofood must comply with Chinese regulations on phytosanitary, food safety and traceability. The protocol will be valid for five years.
Local producers’ and exporters’ trading activities must be approved by the Ministry of Agriculture and Rural Development of Vietnam, and China’s Ministry of Agriculture and Rural Affairs and General Administration of Customs.
Two percent of the export shipments of bananas will be collected for testing, which will be reduced to one percent after two years of the protocol being in force, assuming all quality standards are met.
Vietnam currently exports 11 types of fruit to China via official channels, namely banana, mango, litchi, longan, watermelon, dragon fruit, jackfruit, rambutan, mangosteen, passionfruit and durian, according to the Vietnam News Agency.
Vietnamese bananas are popular in Japan
In the first three months of 2022, Vietnam supplied the Japanese market with more than 1,500 tons of bananas worth 166 million yen (equivalent to 1.3 million USD), up 38.5% in volume and 30.2% in the book. Value compared to the same period in 2021.
Japan is importing bananas from many places, but according to importers, Vietnamese bananas are delicious and have good taste, quality, and competitive prices. Therefore, Vietnamese bananas can compete with similar products in the Japanese market.
However, Vietnam's banana market share in Japan is still very modest, accounting for only 0.6% of the country's total banana imports.
According to the Import-Export Department (Ministry of Industry and Trade), citing statistics from the Japanese Customs Agency, the Japanese market's banana imports in the first three months of 2022 reached more than 244,000 tons, worth 22.4 billion yen. (equivalent to 171.2 million USD), down 2.5% in volume and 3.5% in value over the same period in 2021.
The average price of imported bananas reached nearly 92,000 yen per ton, up 6.2% over the same period in 2021.
The Philippines is the largest banana supplier to the Japanese market, followed by Ecuador, Mexico, Guatemala, Peru, and Costa Rica... Vietnam ranks 7th among the chain exporters to Japan.
Korea, the potential market for Vietnamese banana
In Asia, in addition to China and Japan, Korea is also a country that tends to increase banana imports from Vietnam.
According to the Import-Export Department (Ministry of Industry and Trade), Vietnam will be the sixth largest banana supplier to South Korea in the first five months of 2021, reaching 2,900 tons, worth $2.3 million, up 13.6% in value. Volume, up 48.3% in value over the same period in 2020.
The average price of imported bananas from Vietnam is $791.6/ton. The proportion of imports from Vietnam accounted for 1.9% of the total banana imports of Korea.
According to statistics from the Korea Trade Association (KITA), in the first five months of 2021, South Korea imported 155,300 tons of bananas, worth $131.5 million, up 3.4% in volume and 8% in the book. Value over the same period in 2020. The average price of imported bananas reached 846.3 USD/ton, up 4.5% over the same period in 2020.
Banana is a popular fruit in Korea, but banana is a Korean product that has to be imported almost 100% due to unfavorable farming conditions.
According to the Import-Export Department, Vietnam has many advantages to increasing market share in the Korean market, thanks to the edge of low import tariffs and the benefits from the Vietnam - Korea Free Trade Agreement (VKFTA).
Therefore, to increase the market share of bananas in Korea, enterprises must comply with the regulations on the new Korean pesticide list system (abbreviated PLS), which has been in effect since 2019.
Together to raise the level of Vietnamese bananas
This system regulates the pesticides used and the maximum residue levels on imported fruits and vegetables.
Enterprises need a large-scale production management system to improve price competitiveness and product quality. Currently, Vietnam's bananas are still mainly grown on a small scale.
Therefore, the leading banana import and export suppliers in Vietnam must pay special attention to the cultivation and fertilization process according to GlobalGAP standards. Along with that, must produce and pack with the highest quality to increase the competitiveness of bananas. Businesses also have to spend a lot of time spreading the process to potential banana growing areas of farmers.
That is what Vagrofood is doing to increase the competitiveness of Vietnamese bananas in the international market.
Address: No. 26, N1 Street, Phu My Hiep Residential Area, Dong An Town, Tan Dong Hiep Ward, Di An City, Binh Duong Province, Vietnam.
Email: info@v-agrofood.com
Hotline: +84 3799 321 09
Website: vagrofood.com