The Branch of Olam Vietnam Limited in Bien Hoa II Industrial Zone was the top fruit and vegetable exporter in Vietnam in the first 5 months of 2022, reaching 59,384 thousand USD in turnover.
According to data from the General Department of Customs, Vietnam’s fruit and vegetable exports in June 2022 reached 259.27 million USD, up 0.3% over May 2022, down 18.9% compared to June 2021.
In the first 6 months of 2022, fruit and vegetable exports of Vietnam achieved a turnover of 1.68 billion USD, down 17.1% over the same period in 2021.
Among Vietnam’s fruit and vegetable exporting markets, exports to China were the highest in turnover. In the first half of 2022, fruit and vegetable exports to China reached 799.70 million USD, down 34.0% over the same period in 2021, accounting for 47.62% of Vietnam’s total fruit and vegetable export.
Vietnam’s fruit and vegetable exports to the US ranked second in turnover, reaching 136.84 million USD in the first half of 2022, up 23.1% over the same period in 2021, accounting for 8.15% of the total fruit and vegetable export.
Korea ranked third among Vietnam’s top fruit and vegetable exporting markets. Vietnam exported 94.55 million USD worth of fruit and vegetable to this country, up 15.3% over the same period in 2021, accounting for 5.63% of the total fruit and vegetable export.
In fourth place is Japan, reaching an export turnover of 83.22 million USD, up 5.1% compared to the same period in 2021, accounting for 4.96% of the total export.
Vietnam’s fruit and vegetable exports to several EU countries increased significantly in the first 6 months of 2022. Exports to the Netherlands reached 46.98 million USD, up 21.0%; to Germany 11.90 million USD, up 34.3% over the same period in 2021.
Export results in the first 6 months show that Vietnam’s fruit and vegetable industry has had a positive shift as products penetrate more into high-end markets, especially processed fruit and vegetable products. However, because the Chinese market still accounts for a large proportion, the declined export to this market has affected Vietnam’s overall fruit and vegetable exports.
Since the beginning of 2022, due to China's implementation of the "Zero Covid" policy, pandemic prevention measures have been tightened in this country. That causes a lot of difficulties for other countries to export goods to China, Vietnam included, and has greatly affected the production and export of vegetables and fruits in Vietnam.
It is forecasted that Vietnam's fruit and vegetable exports in the last months of 2022 will still face many difficulties.
China is still Vietnam's largest fruit and vegetable export market, accounting for 47.62% of total turnover in the first half of 2022. Therefore, whether Vietnam's fruit and vegetable exports can have a strong breakthrough or not will depend a lot on China's ability to control the pandemic.
In the long term, the prospect of exporting fruits and vegetables to China will be relatively positive after the country will have controlled the COVID-19 pandemic well, and the demand for products will increase sharply.
Several Vietnamese fruit and vegetable products have recently been licensed for official export to China, which helped increase the export turnover of fruit and vegetable products.
As for the EU market, with tariff incentives from the EU-Vietnam Free Trade Agreement (EVFTA), Vietnam's fruit and vegetable exports to the European countries are assessed to have great potential.
Before the EVFTA, Vietnamese vegetables and fruits exported to the EU had a rather high tax rate of 10-20%. After this agreement came into effect, the fruit and vegetable industry was among the industries eligible for tariff incentives. Many of Vietnam's top fruit and vegetable products enjoy a 0% tax rate. That is a huge competitive advantage compared to Asian countries such as China and Thailand because these two countries do not have a free trade agreement with the EU.
(First 5 months 2022)
Branch Of Olam Vietnam Limited In Bien Hoa II Industrial Zone, Van Gia Import Export Trading Company Limited, and Van Xuan Agriculture Products Import Export Company Limited were Vietnam’s top fruit and vegetable exporters in the first 5 months of 2022, reaching an accumulate of over 100,000 thousand USD in export turnover.
Followed in fourth and fifth place are Olam Vietnam Food Processing Company Limited and Yuelaimei Import & Export Co., Ltd, reaching 26,290 thousand USD and 21,192 thousand USD in turnover, respectively.
Source: The Ministry of Industry and Trade
Compiled by VietnamCredit