The demand for novel, highly nutritious fruit and vegetable imports into the EU is quite high and is increasing quickly. Moreover, vegetables and fruit are recognized as one of Vietnam’s major export agricultural commodities, especially tropical fruit. They are also getting better in terms of quality. Therefore, Vietnamese tropical fruit is able to boost its market share in the EU.
About Vietnam – Great Potential for Tropical Fruits Development
Vietnam is a Southeast Asian nation with pleasant weather and fertile soil. Around 70% of the population is employed in agriculture. By 2020, Vietnam had 2 million hectares of vegetable and fruit growing land with an annual production of more than 25 million tons.
Among these, the Mekong River Delta makes up the majority of the vegetable and tropical fruit production (about 60%), followed by the East-South region (7%), the South-Central Coast (15%), and the Central Highlands (1%).
In addition to thousands of small-scale businesses and tropical fruit farms, Vietnam has roughly 145 industrial-scale tropical fruit and vegetable processing facilities in 2021, with a total designed capacity of 800 thousand tons/year.
As a result, Vietnam has enormous potential to expand its production and export these kinds of products to other countries.
The market for tropical fruits and vegetables in Vietnam is anticipated to grow at a CAGR of 4.5% over the course of the forecast period (2022-2027).
Vietnam’s tropical fruit and vegetable export turnover in December 2021 reached 299.4 million USD, increasing 14.5% from November 2021 and 9.1% from December 2020, according to statistics from the General Department of Customs.
Vietnam’s veggies and tropical fruit export turnover totalled 3.55 billion USD in 2021, an increase of 8.6% from 2020.
Currently, fresh produce from Vietnam is transported across 60 nations and territories, including several picky markets like the European Union, the United States, Australia, New Zealand, Chile, Japan, China, and South Korea.
Statistics of Vietnamese Tropical Fruit Export to EU
One of the biggest export destinations for Vietnam’s agricultural goods, particularly tropical fruits, is the EU.
The EU market imports fruit and vegetable goods worth about $100 billion USD a year from all over the world (import revenue).
Regarding tropical fruits and veggies imported from Vietnam, it is expected to increase further thanks to the good effect of EVFTA.
Vietnamese tropical fruits and veggies export turnover to the EU was US$173 million in the first 11 months of 2021, an increase of 7.6% from the same period in 2020.
According to the statistics, between 2012 and 2021, the EU’s imports of edible fruits, nuts, citrus fruit peels, and melons from Vietnam increased in value dramatically.
Additionally, the value of the European Union’s imports of the above goods from Vietnam in 2021 was US$932.76 million.
What Kind of Tropical Fruits are Exported from Vietnam to the EU?
Vietnam was the EU’s fifth-largest provider of fresh tamarinds, jackfruit, lychees, plums, passion fruit, and star fruit during the first quarter of 2021.
Also, a total of 1,490 tonnes of these tropical fruits were supplied for a market value of EUR 9 million, a decrease of 9.6% in volume but a rise of 12.7% in value over the same period in 2020.
Fruit Revenue Chart
According to statistics from the European Union’s statistical office, between 2016 and 2020, the EU’s import demand for fresh tamarinds, jackfruit, lychees, plums, and passion fruit decreased by 0.2% annually in volume while increasing by 4.5% annually in value.
According to the Import-Export Department under the Ministry of Industry and Trade, although Vietnam has sold a variety of tropical fruits to the European Union, passion fruit and lychees are among the most popular Vietnamese fruits of Europeans.
Passion fruit was mostly shipped from Vietnam to the EU market, where it received 97.95% of the total export value.
Additionally, given that the juicy fruit is doing well in the EU, Vietnamese lychee has promising export possibilities going forward. Between 20,000 and 25,000 tonnes of lychee are imported into the bloc annually, which presents a vast number of chances for Vietnamese lychee to expand its market share.
Tropical Fruit Products with Pertinent HS Codes
The HS codes of some main types of Vietnamese vegetables and fruits exported to the EU are:
HS code. 20098999 – Fruit juices (including grape must) and vegetable juices, unfermented and not containing added alcohol, or containing added sugar or other artificial substances – Other (according to USD 28 million, down 23.5% over the same period in 2020 and used 16% of the total export turnover of vegetables and fruits to the EU);
HS code. 8109094 – Grenade, custard apple or custard apple, whip fruit, passion fruit, passion fruit, red alligator fruit, jujube and earth strawberry (reached USD 22 million, up 19.8%, used 13%);
HS code. 08119000 – Fruits and nuts (nuts), not cooked by steaming or cooked in water, refrigerated, not added sugar or other artificial substances – Other (reached USD 18 million, up 23.8%, used 10.4% )
Which steps should you take now?
In short, opportunities from natural conditions and increasing demands from the EU fruit and vegetable market have made Vietnam an increasingly potential fruit exporter to EU countries.
However, Vietnam has only a minor market share compared to other global fruit exporters.
As a result, when importing fruit in a small emerging market, quality and cost are probably the top concerns for businesses.
In Vietnam, in order to link up with reliable suppliers of high-quality items that adhere to EU requirements and create deals at a reasonable price, your company will need a companion.
VIEC is here to assist you in finding the best suitable tropical fruit grower through efficient and complete outsourcing.
Client-orientedness has been one of our strengths over our 11 years of import and export activity. We’ll see to it that using VIEC’s sourcing service nets you considerable revenues.