Bright prospect for fruit, vegetable exports in Q2
Despite declines in the export of some agricultural products, overseas shipments of fruits and vegetables
The unique, unforgettable, and thorny flavor is the first impression one gets when mentioning Vietnamese durian fruit. However, in 2023, durian has officially stepped up to a new position: becoming the billion-dollar fruit king with a booming export year. This fruit has become an extremely rare bright star in the picture called export 2023.
2023 is a difficult year for Vietnam's export of goods in the context of declining demand for goods from Western countries. Vietnam's main products exported from consumer electronics, garments/ shoe leather to wooden furniture and machinery, all fell into disrepair.
However, while 90% of Vietnam's exports are negatively affected by the trade recession, geopolitical factors, etc., the remaining 10% of agricultural exports have risen spectacularly despite adversity.
The fruit and vegetable group has broken through to become the strongest growth group in 2023, with a bright star in the agricultural product industry called durian. From a fruit that is difficult to care for, grow, and consume, the king of fruits has recorded 4-digit growth in 2023 thanks to Chinese consumers' new love for this fruit and the launch of the Regional Comprehensive Economic Partnership (RCEP).
The "addictive" fruit turns a billion-dollar export star, turning farmers into billionaires.
Vietnam is known for being a long-standing agricultural country with many agricultural products and top output globally, reaching hundreds of countries and territories. One of the outstanding agricultural products is durian, a fruit familiar to Vietnamese people.
Durian is a tropical fruit from Southeast Asia, famous for its nickname "king of fruits". Although durian's flavour is quite strong and intense, it contains more nutrients than most other fruits. Durian is widely used in many tropical regions worldwide, especially in Southeast Asia, such as Vietnam, Thailand, Malaysia and Indonesia.
Durian fruit is usually large and has a hard outer shell with many sharp spines covering it. It has many different varieties, the most popular being Durio zibethinus. Durian fruit can be up to 30cm long and about 15cm wide, weighing 1-3 kg. The taste of this fruit can bring different reactions in each person, from "unpleasant" to "addictive".
According to the Vietnam Fruit and Vegetable Association, the total export turnover of fruits and vegetables in the first 11 months of the year is estimated to reach more than 5.19 billion USD, an increase of more than 70% over the same period in 2022. Durian makes the largest contribution to The growth of the fruit and vegetable industry, accounting for more than 40% of the export turnover of this industry.
Durian exports increased 5 times compared to 2022 and 10 times compared to 2021. Unit: million USD
Up to now, durian exports have officially exceeded 2 billion USD. Vietnam's durian export value continuously increased from 29.2 million USD in 2016 to 420 million USD in 2022, and only in the first 8 months of 2023 has it reached nearly 1.2 billion USD (an increase of nearly 3 times compared to the whole year 2022). The main export markets of our country's durian include China, Japan, Australia, and mainly fresh and frozen fruit.
"Even when selling durian for 20,000 VND/kg, it is still profitable, but in reality, it has never dropped to 20,000 VND/kg," said Mr. Doan Nguyen Duc, Chairman of HAGL.
The Durian Association of Dak Lak province cited data saying that up to now, our country has more than 112,000 hectares of durian, with a total current output of about 900 thousand tons. The country has 34 provinces in 6 durian growing regions (except the Red River Delta). Of these, 4 provinces have a durian area of over 10,000 hectares and an output of over 50,000 tons/year, including Dak Lak, 28,600 hectares and an output of 190,000 tons; Lam Dong, 17,700 hectares, an output of 106,000 tons; Tien Giang 17,700 hectares and output 293,000 tons and Dong Nai 11,500 hectares and output 69,000 tons.
The profits brought by durian create a fever throughout the Central Highlands - home to the country's largest area and output of durian. Immediately after Vietnam signed the official durian export protocol to China, this fruit became a great concern for businesses and households in this area.
Before 2015, the profit of each hectare of durian was about 300 - 400 million VND/year, second only to pepper trees. By the end of 2016, pepper prices continuously dropped, while durian prices began to increase and always brought in profits of more than 500 million VND/ha/year. With selling prices ranging from 60,000 VND to 70,000 VND/kg, the average revenue from durian sales of households fluctuates at 1.3 billion VND/ha/year.
After deducting costs, each hectare of durian currently brings a profit of 800 - 900 million VND/year. The increasing momentum of durian has continued. In Dak Nong, some areas have entered the end of the harvest season, but the price is still increasing. The price of Thai durian "jumps" to 90,000 - 100,000 VND/kg depending on the type.
Regarding fluctuations in domestic and export durian prices, Mr. Doan Nguyen Duc, Chairman of Hoang Anh Gia Lai Joint Stock Company (HAGL), said at the annual shareholders' meeting that even when selling durians for 20,000 VND/month, kg, it still profitable. The reason given by the head of HAGL is that the production cost of durian is very low, only from 5,000 - 10,000 VND/kg, depending on the scale. The price of durian sold on the domestic market "has never dropped to 20,000 VND/kg". Owning 1,200 hectares of durian, including Musang King and Mong Thong Thai in Vietnam and Laos, Bau Duc is the business owner with the largest durian garden in Southeast Asia.
The "jogging" journey to China to conquer the "piece of cake" of 20 billion USD
According to the Plant Protection Department, from 2019 until now, Vietnam's fresh durian fruit has been exported to 24 markets worldwide. The annual export volume is about 10,000 - 15,000 tons. Contributing to this great success cannot help but mention the love of the people of China - the 'neighbour' country - for Vietnamese durian.
The export journey of durian officially began after the signing of the Protocol between the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China on plant quarantine requirements for fresh Vietnamese durian. Vietnam's first batch of durian has been officially exported to China since mid-September 2022.
In just the last 3 months of the year, Vietnam exported 40,800 tons of durian with a total turnover of 188 million USD to the Chinese market, which was well received by businesses, fruit dealers and consumers in this country.
China is the world's largest durian consumer, the destination for 95% of Vietnamese durians, and in 10 years, it will still maintain its position with a "piece of cake" of 20 billion USD.
Regarding the Chinese market, it has always been an important importing country for Vietnamese rice and seafood and accounts for a major proportion of up to 65% of the Vietnamese fruit/vegetable market share - the market share has tripled in the past decade. After officially exporting Vietnamese durian to China, it became the destination for 95% of Vietnamese durian. Not only is Vietnam the largest durian consumer market, but your country is also the world's largest consumer of the king fruit.
Durian export market share to China in 2023
Statistics from the country's e-commerce platform Meituan show that, compared to demand in 2022, durian consumption has increased by 700% this year. Vietnam has reached a record-high level of durian exports to China (up 1,400% over the same period last year) as of the third quarter of 2023; this result ensures durian has a leading position in the export sector. Vietnamese fruits have a proportion of up to nearly 40%.
In China, many people like to eat typical tropical fruits, including durian - a huge stepping stone for Vietnamese durian to penetrate the market for nearly 5 billion people. Durian has reached the top of Taobao searches, with searches increasing by 418% at one point within a week. According to a Yicai reporter, when searching for the keyword "durian" on the Xiaohongshu platform - a Chinese social media and e-commerce platform, there are up to 3.1 million results returned, while The number of search results related to cherries, the second largest imported fruit, is only about 760,000.
All topics, from durian prices, varieties and quality to how to choose durian and preservation methods... are of special interest to Chinese people.
In 2021, China's fresh durian import value increased by 82.4% to 4.205 billion USD, nearly 4 times higher than in 2017. Last year, the country also spent nearly 4.4 billion USD on importing durians, becoming the main consumer market. Despite spending such a huge amount of money, only about 10% of Chinese people can eat durian because of its expensive price. Experts say that in the next 10 years, China will still be the world's largest durian consumption market, with a capacity that could reach 20 billion USD by 2025.
"The luxurious fruit is likened to a cherry, used as a wedding gift; eating one fruit equals 3 chickens because of its high nutritional content," Chinese people commented on durian.
Another interesting point about durian is that Chinese people consider it a luxurious fruit like cherries. SCMP newspaper quoted Ma Qian - a resident of a rural district in Henan province, China - saying that giving wedding or engagement gifts to relatives and friends now has more options separately, alongside traditional grapes, ham, milk, and dried mushrooms.
"My cousin got engaged last month, and the adults in the family asked me to give them durian instead of grapes, thinking it would be more formal and trendy," Ma Qian said.
"The old belief is that durian has high nutritional content and eating one durian is equivalent to eating 3 chickens," this person added.
Not only that but "Cherry Freedom" - a common phrase in China that refers to the ability for a person to buy expensive fruit freely and without hesitation - has now become "cherry freedom" durian freedom".
Durian is currently the most trendy item among young people in the provinces. All cafes serve durian crepes and ground coconut durian. Every month, we buy a durian for everyone to eat together. The price will sometimes be 40 yuan/kg or 60 yuan/kg (130,000 - 200,000 VND)," Ma said.
Zhang Liang, a truck driver in Jingzhou City, Hubei province, gave his wife a durian worth 300 yuan (more than 990,000 VND) and shared with SCMP: "Bridegrooms in the countryside often have to Give the bride's family grapes, peaches, white wine, and now a box of durian. This will make their future mother-in-law feel "promised in the village".
How does Vietnamese durian "overwhelm" its competitors?
The 'piece of cake' worth 20 billion USD in the billion-people market is not limited to Vietnam alone. The durian export race also includes Thailand, Malaysia, the Philippines, and Cambodia... participating. However, in terms of output, only Vietnam and Thailand become the main competitors. Malaysia and the Philippines have small areas, and exported durian output could be more significant. Not to mention, Malaysia has the strength of ripe Musang King durian, so it is difficult to export fresh; Philippine durian productivity is very low, only 5 tons/ha, while Vietnamese durian productivity is 20-30 tons/ha. Worth mentioning, durian in other countries is only available seasonally, while Vietnam harvests it all year round, so there is always export, a big advantage of Vietnamese durian.
Transporting durian from growing areas in our country to China is close and only takes 1.5 days. Thanks to that, durian is guaranteed to be fresh and delicious, and shipping costs are cheaper than in Thailand (6-8 day shipping), Malaysia and the Philippines.
Although manageable in quantity, Vietnamese durian has a very good selling price compared to other Southeast Asian countries (Philippine durian 27.6 CNY/kg, Thai durian and Vietnamese durian). Men are 34.1 yuan/kg and 33.5 yuan/kg respectively).
"Philippine and Thai durians are only available seasonally, while Malaysia is only exported to the Chinese market as frozen products. We should do a good job growing areas and packaging in the next 10 years. In that case, our country will not need to worry about the market for durian, said a Vietnam Fruit and Vegetable Association representative.
Vietnamese durian is harvested all year round and exported to China in only 1.5 days at a low cost, maintaining its deliciousness.
So, faced with such great demand, does China grow its durian? The answer is yes. At the beginning of 2023, China Central Television (CCTV) reported that about 93.3 hectares of durian trees in Sanya, Hainan Island, had been harvested, with an estimated total harvest of 116.64 kg/ha. CCTV reported that agricultural experts from Southeast Asia have assisted in planting durian trees in China. It is known that Hainan province, China, began growing durian in the 50s of the last centuries, but the survival rate needed to be higher. Since 2018, this locality has begun to plant on a large scale. Currently, the whole province has about 30,000 acres of durian growing area.
However, later, the Director of the Institute of Tropical Fruit Trees at Hainan Academy of Agricultural Sciences and a researcher at Hainan Academy of Agricultural Sciences said the estimated durian yield was only 50 tons, or 0.005 % of total durian consumption in China this year. This number is much lower than the previously set target of 2,450 tons.
Chen Lei, Secretary General of the China Fruit Distribution Association, believes that large-scale commercial durian cultivation will take a long time, and prices cannot drop significantly in the short term. Durian "made in China" is currently priced at about 60 yuan (nearly 200,000 VND) for about 600 grams, with extremely limited quantities.
According to industry experts, China's cultivation of durian does not necessarily produce fruit, and having fruit does not necessarily mean it is delicious. Because durian trees are picky about soil and climate, too much sun or rain could be better. Growing durian in areas with water will be very easy. China grows in Hainan, an area that suffers from many storms; shaking trees will make it difficult to set fruit and keep fruit. It takes 10 years to be successful. Therefore, in the coming time, China will continue to depend on Southeast Asia for durian. If by 2024, Vietnamese durian has more growing area codes issued by Chinese authorities, the ability to export durian will reach 2 - 2.5 billion USD.
![]()
Let durian " run " and "fly high and far."
Besides China, Vietnamese durian still has many potential markets to develop through new generation FTAs because Vietnam has participated in many trade agreements such as CPTPP, EVFTA, and RCEP and participated in large communities such as ASEAN and the Eurasian Economic Union. This is room for durian to grow further in export value.
A typical example is the United Kingdom, with a preferential tax rate of 0% under the UK-Vietnam Free Trade Agreement (UKVFTA); Vietnamese durian has a great competitive advantage in price compared to imported products of the same type (currently subject to an 8% tax rate), in the context of high inflation, making price a top concern for UK importers, distributors and consumers.
At the Live and Online Forum "Identifying the current situation of linking durian consumption and export in 2023 and solutions for effective and sustainable development of Vietnam's durian industry", speaking at the Forum, the Minister Ministry of Agriculture and Rural Development Le Minh Hoan said that the agricultural and rural development strategy is expressed through "cooperation - linkage - market". Therefore, the Minister wants the durian industry, in particular and other industries, in general, to reorganize the industry structure to be sustainable. There must be production and consumption in it, meaning there are farmers and businesses. Reorganizing production is about improving planting techniques and creating space for farmers and businesses to cooperate to build the Vietnamese durian brand. Sustainable development and competitiveness in the world market.
In addition, ensure the quality of the fruit by harvesting enough ripeness, without chemical residues, and post-harvest treatment so that the durian fruit has the best quality when exported to maintain the region's brand reputation. Cultivation and national branding are important issues that gardeners, purchasing businesses, and local authorities need to pay attention to. The government must also actively seek and expand consumption markets to make durian consumption more sustainable.
According to other industry experts, in addition to fresh products, the industry needs to develop more processed products and simultaneously strictly plan the development of durian growing areas across the country.
In the coming years, Vietnamese durian is expected to maintain its position as a billion-dollar export fruit and expand to conquer major global markets.
