BANANA EXPORT FROM VIETNAM
With 28.2% of all bananas imported by the market, Vietnam is now the second-largest exporter of bananas to China, after only the Philippines, according to the Import-Export Department of the Ministry of Industry and Trade. The department cited data from the General Administration of Customs China, which showed that during the first ten months of this year, the northern market imported 1.46 million tonnes of bananas valued at US$912.4 million, a decrease of 7.1% in volume and 10% in value over the same period the previous year. The average cost of imported bananas was US$623.2 per tonne, a 3.1% decrease from the previous year.
Most notably, because of Vietnam's geographic location and rising prices in the Chinese market, China increased its imports of bananas from Vietnam while decreasing those from the Philippines. The Ministry of Agriculture and Rural Development states that the nation produces an average of 2.1 million metric tonnes of bananas annually. Bananas are a fruit that can be harvested all year round.
- Best Banana Plant Location In Vietnam:
As part of General Secretary of the Communist Party of Vietnam Central Committee Nguyen Phu Trong's official visit to China on November 11, 2022, the Vietnamese Ministry of Agriculture and Rural Development and the Chinese General Administration of Customs signed a protocol requiring phytosanitary procedures for fresh bananas exported into China. Vietnam now has eleven fruits with permission to sell in China. Among these fruits, the nation has ratified many Chinese treaties concerning the phytosanitary standards for four varieties: durian, banana, passion fruit, and mangosteen.
Vietnam's fresh and dried banana exports to South Korea and Japan were valued at $4.1 million and $6.6 million, respectively, in the previous year, representing 0.6% and 1.3% of the respective market shares of the two nations. Mr. Do Quoc Hung, deputy director of the Asia-Africa Market Department under the Ministry of Industry and Trade, stated during a workshop on Wednesday that Vietnam can boost exports if local businesses enhance the quality and packaging of bananas and launch more marketing campaigns.
According to the agency, which cited data from the Korea International Trade Association (KITA), South Korea imported 8,000 tons of mangos worth $36.4 million from Vietnam in the first three months of 2023—a decrease of 18% in volume and 19% in value from the same time the previous year. The Vietnam Trade Office in South Korea predicts that in 2023, a variety of factors will still have an impact on Vietnam's exports to the nation due to the significant pressures the Korean economy confronts from rising interest rates and inflation.
Vietnam has higher labor costs and poorer production than other nations, making banana cultivation more challenging. For instance, productivity in the Philippines is 1.3 workers per hectare, whereas in Vietnam it is 1.5–1.7 workers. In the Philippines and Vietnam, the labor cost is $200 and $300 per month, respectively. On the other hand, Vietnam has up to 25% more rotten bananas than the Philippines, which has 15% less.
Because the Chinese market will increase purchases of this commodity through formal channels, banana exports will benefit greatly in 2023. Farmers of bananas have quickly complied with export requirements. In 2023, banana export prices could reach 33–34 thousand VND/kg, which would mean large earnings for many gardeners—up to 900 million–1.2 billion VND/ha/year. Observing that this product yields substantial profits and that the market draws merchandise, numerous farmers significantly expand the region. Some households rent one to six hectares of land to produce bananas for export because they believe officially exported bananas would be stable over time and there are plenty of prospects to increase the number given China's size as a market.
DELICIOUS FRUIT EXPORT COMPANY LIMITED
ADD: 21/7/14 BINH LOI STREET, BINH THANH WARD, HO CHI MINH CITY, VIETNAM
