The Vietnam Fruit and Vegetable Association (Vinafruit) has reported that Vietnam’s fruit and vegetable exports in 2024 reached a total value of $7.148 billion, for a 28 per cent increase compared to 2023. In the first half of this year, however, export turnover dipped to just $3.107 billion, down 6.7 per cent year-on-year, indicating emerging challenges for the industry even as Vietnamese fruit has made its way into over 80 markets worldwide.

While fruit and vegetable exports hold tremendous growth potential they also face growing hurdles. Achieving sustainable export growth will require stronger cooperation between government agencies, businesses, and farmers, particularly in enhancing product quality, ensuring compliance with food safety standards, and investing in advanced preservation and deep-processing technologies.

Growth meets headwinds

Commenting on the outlook for fruit and vegetable exports, Mr. Dang Phuc Nguyen, General Secretary of Vinafruit, remains optimistic, citing several favorable factors. Vietnam boasts potential from 1.2 million ha of fruit-growing land and an annual yield of over 12 million tons, while many enterprises and cooperatives have proactively invested in production, preservation, and processing technologies and adopted international standards such as GlobalGAP and VietGAP. Such efforts have significantly improved product quality and competitiveness. Furthermore, Vietnam’s 17 new-generation free trade agreements (FTAs) contain preferential tariffs, with some at zero, opening up major opportunities to access high-potential markets.

However, Ms. Ngo Thi Thu Hong, General Director of Ameco Vietnam, pointed out that despite the advantages, exporters still face numerous challenges. One of the biggest is the differing phytosanitary requirements between countries and regions, demanding both technical expertise and time. For instance, Japan requires methyl bromide fumigation, South Korea mandates hot steam treatment, and the US insists on irradiation, all of which increase both the time and cost of exports while also potentially affecting the quality of fresh produce. High logistics costs also remain a significant barrier, weakening Vietnam’s price competitiveness compared to countries like China, Mexico, or Taiwan, which benefit from lower shipping costs and domestic subsidies.

Adding to this, Vinafruit representatives noted that Vietnam’s fruit and vegetable exports are also encountering growing challenges in several key traditional markets. China - Vietnam’s largest export destination, accounting for 65-70 per cent of total export value - has been tightening its import standards. The shift from unofficial to official trade channels now requires traceability codes for growing regions and processing facilities, along with stricter food safety regulations.

The US, Vietnam’s second-largest market, primarily imports coconut, durian, dragon fruit, mango, longan, lychee, and rambutan. However, the geographical distance, high tariffs, and stringent preservation standards significantly impact both quality and pricing, reducing competitiveness. South Korea ranks third in export value, with bananas, mangoes, and dragon fruit as the top items. The country also maintains high requirements on product quality and food safety. And the EU, while offering potential due to high demand for tropical fruit, imposes some of the most stringent import regulations globally.

On top of these challenges the industry is grappling with global economic uncertainties, rising protectionist trends, and both tariff and non-tariff barriers. Though improvements have been made, many Vietnamese fruit and vegetables still fall short of meeting the strict standards set in demanding markets, particularly in terms of pesticide residues, phytosanitary protocols, and traceability. The fragmented and small-scale nature of agricultural production in the country also make it difficult to implement standardized production processes.

Moreover, the sector continues to struggle with brand promotion, market positioning, and deep integration into modern distribution channels in new markets. A large portion of exports still go out in raw form or are handled by foreign intermediaries, limiting the added value retained by Vietnamese producers.

Unlocking market access

To address these challenges, Ameco Vietnam has put forward several specific recommendations. One key proposal is for State agencies to negotiate and expedite the operation of an irradiation facility in Hanoi in the near future to cut transportation times for seasonal fruit like lychee destined for the US market.

The Ministry of Industry and Trade and the Ministry of Agriculture and Environment have also been urged to swiftly negotiate market access for Vietnamese lychee in South Korea, which have potential that is comparable to Japan. At the same time, overseas trade offices should provide more detailed insights into consumer demand for agricultural products in their respective countries, helping businesses tailor their production and offerings to better suit local preferences.

Ameco also recommended continuing to organize online business matchmaking programs that consider transport distances to help companies connect with potential buyers. It suggests introducing reputable organizations that can supply or transfer deep-processing technologies for high-value but perishable produce (such as lychee and longan), enhancing quality and extending shelf life. Businesses should also be supported in verifying information about import partners to avoid the risks of dealing with unreliable buyers.

Representing northern Son La province, Ms. Le Thi Hong Anh, Director of the province’s Center for Investment, Trade, and Tourism Promotion, proposed that relevant ministries support local authorities in organizing trade promotion conferences both domestically and internationally. She called for financial and legal support to participate in consumption promotion events and agricultural product marketing via media channels and foreign embassies. Moreover, support is needed to help businesses and cooperatives improve their market access capabilities, negotiation skills, brand development, export documentation, and e-commerce applications, bringing Son La’s produce closer to global markets.

As a long-time exporter of fruit and vegetables, Mr. Nguyen Dinh Tung, CEO of the Vina T&T Group, praised the strong support in trade promotion from Vietnam’s overseas representative agencies. “Each year the Trade Promotion Agency (Vietrade) backs Vinafruit’s participation in major international trade fairs, but to increase awareness about Vietnamese fruit among global buyers, commercial offices could promote Vietnam’s exhibition booths at these events, making it easier for buyers to find suitable Vietnamese suppliers,” Mr. Tung suggested.

Sharing the industry’s broader aspirations, Mr. Nguyen emphasized that Vietnamese fruit aims to go beyond traditional markets. He recommended that overseas trade offices deepen their market research and share detailed information with businesses, covering consumer demand, preferences, import regulations, technical barriers (SPS and TBT), tariffs, and competitors in key markets such as the US, the EU, Japan, South Korea, China, Australia, and the Middle East. Emphasis should also be placed on emerging consumption trends like organic fruit and deep-processed products. Timely, accurate market information, coupled with risk analysis and forecasting, will be essential.

He also called for more coordinated trade promotion activities, including specialized exhibitions for Vietnamese fruit and direct networking events with importers and distributors. Domestic authorities and businesses should work together to build a strong image for Vietnamese fruit, focusing on quality and safety, through activities like tasting events and product showcases at embassies, trade offices, retail locations, and cultural festivals.

Crucially, Mr. Nguyen proposed building a comprehensive database and moving towards a digital platform to manage market information, partner directories, and related documents, and making it easier for businesses to access and use this data. At the same time, leveraging social media, websites, and email marketing can help promote products and connect with potential partners, providing strong momentum for Vietnam’s fruit export industry in the time ahead.