According to the Vietnam Fruit and Vegetable Association (Vinafruit), coconut imports reached 31.2 million USD in the first 7 months of the year, a 1,873% increase compared to the same period last year. Overall fruit and vegetable imports grew by 18%, reaching a total of 1.45 billion USD.
Dang Phuc Nguyen, Vinafruit's general secretary, explained that the surge in imports is driven by strong growth in coconut exports, coupled with limited domestic production and high prices. "China, the US, and the Middle East are all increasing their coconut purchases from Vietnam, straining the domestic supply for processing," he said.
The US officially opened its market to Vietnamese fresh coconuts in 2023, and China followed suit in 8/2024, further boosting exports. In the past 7 months, coconut exports generated 306.2 million USD, with whole coconuts accounting for 102.8 million USD (a 14.9% increase) and processed coconut products contributing 203.4 million USD (a 56.8% increase).
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A business purchasing coconuts in Ben Tre. Photo: Dinh Tung |
A business purchasing coconuts in Ben Tre. Photo: Dinh Tung
The rapid export growth stems from high domestic processing demand, which has outpaced the growth of local coconut acreage and yields. To maintain production, many businesses are importing coconuts from Indonesia and exploring additional sources in Papua New Guinea. However, due to the lack of a formal trade agreement between Vietnam and Papua New Guinea, transactions remain limited.
According to the Vietnam Coconut Association, domestic coconut prices in the first 6 months of the year fluctuated between 18,500 and 19,000 dong per coconut, the highest level to date. This price surge is attributed to drought and saltwater intrusion in the Mekong Delta and disease outbreaks in central Vietnam. Farm gate prices averaged 180,000-190,000 dong per dozen (12 coconuts). After transportation and sorting costs, retail prices for premium coconuts reached approximately 25,000 dong each, while lower-grade coconuts sold for 140,000-170,000 dong per dozen. These prices are six times higher than 4 years ago, a rare occurrence in the agricultural sector.
High prices have brought significant profits to farmers and encouraged expansion of coconut cultivation. Vietnam currently has over 200,000 hectares of coconut trees, producing approximately 2 million tons annually. The number of processing plants has also increased rapidly, from 8 in 2015 to 45 in 2024, with participation from major companies like Betrimex, Luong Quoi, and Beinco. However, the growth in acreage and yield has not kept pace, leading to fierce competition for raw materials.
The association advises farmers to select coconut varieties that meet export demands to mitigate the risks of local surpluses or shortages due to market fluctuations.
Thi Ha
