According to estimates, Vietnam's fruit and vegetable export turnover in March 2022 reached 340 million USD, up 56.6% compared to February 2022, but down 15.8% compared to March 2021. In the first quarter of 2022, Vietnam's total export turnover of fruit and vegetable is estimated at 849 million USD, down 12.2% over the same period in 2021.
According to the General Department of Customs statistics, fruit and vegetable exports to the Chinese market dropped sharply in the first two months of 2022, reaching only 261 million USD and down nearly 26% over the same period in 2021.
In February 2022, China was Vietnam's largest fruit and vegetable export market, with a turnover of 113.9 million USD, accounting for 52.4% of the total export turnover. Nevertheless, the export turnover of fruit and vegetable to the Chinese market in February decreased by 23.5% and 32.8% compared to January 2022 and February 2021.
In the first two months of 2022, Vietnam's fruit and vegetable export turnover to China decreased by 25.8% over the same period in 2021, reaching 261.24 million USD. The proportion of Vietnam's fruit and vegetable exports to China accounted for 51.4% of the country's total export turnover in the first two months of 2022. Therefore, the decrease in fruit and vegetable exports to China was the main reason for the decline in Vietnam's fruit and vegetable exports.
Exports to the Russian market also fell sharply due to the impact of the conflict between Russia and Ukraine. The export turnover of fruit and vegetable to Russia in February 2022 only reached 3.6 million USD, down 39.2% over the previous month and 18.5% compared to February 2021. The total export turnover of fruit and vegetable to Russia in the first two months of 2022 reached 9.5 million USD, up 7.7% over the same period last year.
In addition, the export turnover of fruit and vegetable from Vietnam to Thailand in February 2022 reached 8.37 million USD, down 17.1% compared to January 2022, but increased sharply by 38.9% compared to February 2021. In the first two months of 2022, Vietnam's fruit and vegetable export turnover to Thailand decreased by 16.8% over the same period in 2021, reaching 18.45 million USD.
Vietnam's fruit and vegetable exports to China have faced many difficulties since the end of 2021. There is always congestion at the northern land border crossings because the Chinese government pursues the "Zero Covid" policy, leading to them tightening pandemic prevention and control at border gates. In addition, there are difficulties in approving business documents according to China’s new regulations.
In the short term, with China continuing to tighten the import of fruit and vegetable, it is expected that the trend of shifting fruit and vegetable exports to markets outside China will continue to show clearly. As for the Russian market, geopolitical tensions that have not shown any signs of abating will hurt Vietnam's fruit and vegetable exports.
While the share of fruit and vegetable exports to Europe and America increased, the share of exports to Asia decreased. The Agency of Foreign Trade under the Ministry of Industry and Trade assessed that there is a clear shift in fruit and vegetable exports to other continents. In the context of exporting to China facing many difficulties, the fruit and vegetable industry has made efforts to boost exports to the US, Korea, Japan, Taiwan, Australia, and some EU markets.
The EU's annual import demand for fruit and vegetable products from the tropics is very large and has a high growth rate. Meanwhile, Vietnam has a free trade agreement with the EU. After the EU-Vietnam Free Trade Agreement (EVFTA) took effect, the tax rate for some Vietnamese fruit and vegetable products entering the EU was reduced to 0%. That is a huge competitive advantage for Vietnam compared to other countries in the region.
For the whole year of 2022, exports are expected to be more positive thanks to the continued increase in global demand for processed fruits and vegetables. Vietnam's fruit and vegetable industry is continuing to shift production structure toward improving quality, increasing processed products, and reducing exports of fresh products.
Source: The Ministry of Industry and Trade
Compiled by VietnamCredit