According to the latest data from the Customs Department, processed fruit and vegetable exports hit 1,35 billion USD in the first seven months, a 33% increase compared to the same period last year. This category recorded high growth within the fruit and vegetable sector, although its turnover remains significantly lower than fresh produce, which reached 3,15 billion USD, up 21,7%.
This growth surge stems from various products. Among high-value items, passion fruit exports rose by 35,5%, mango by 22,4%, and processed coconut by 8,6% year-on-year. Some products experienced even stronger increases, with processed macadamia nuts growing by 345,7%, potatoes by 82,6%, and soursop by 52,8%.
Due to its faster growth, the processed group accounted for approximately 28% of total fruit and vegetable export turnover after seven months, an increase of 2 percentage points from the same period last year.
According to Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, market demand is expanding for pre-processed, frozen, and deep-processed products. Compared to fresh produce, these products offer a longer shelf life, are less dependent on seasonality, and are more convenient for transportation.
Businesses can develop various product forms from the same raw material, such as frozen durian, durian pulp, puree, frozen mango, or concentrated passion fruit, to supply the confectionery, ice cream, and beverage industries. Dried fruits and vegetable powders also benefit from extended shelf life and easier transport.
Coconut stands out as a category with potential for parallel development in both fresh and processed forms. Nguyen stated that demand from the beverage and consumer sectors in major markets still has room for growth. Standardizing preliminary processing, packaging, and cold storage can enhance product value, moving beyond primarily exporting raw materials.
However, to expand processing, businesses must address the raw material challenge. Factories require a sufficiently large, stable, and consistent quality supply, yet current cultivation areas remain fragmented. Therefore, controlling the production process and input quality is crucial for maintaining operational capacity.
Capital and cold chain infrastructure also present bottlenecks. Investing in processing necessitates significant capital expenditure for factories and machinery, along with the need to purchase and store raw materials before production. Cash flow only returns after products are sold, leading to a longer capital recovery period compared to simply purchasing and exporting fresh produce.
Experts thus recommend long-term and stable credit policies to enable businesses to invest in technology, expand capacity, and secure raw material sources. Cold storage and cold chain logistics need development from cultivation areas to logistics centers and border gates, helping maintain product quality throughout the export process.
Thi Ha
