Market Trends of Vietnam Fruits and Vegetables Industry
This section covers the major market trends shaping the Vietnam Fruits & Vegetables Market according to our research experts:
High Regional Exports of Fruits and Vegetables is Driving the Market
According to the General Department of Customs statistics, Vietnam's fruit and vegetable export in 2021 increased by 8.6% compared to 2020. There is a high demand for agricultural products, including fruits and vegetables, from Vietnam to countries such as the Republic of Korea and Japan, creating opportunities for Vietnam to boost the export of farm produce, especially fruits and vegetables. Though there was a drop in the overall export of fruits, the exports to certain regions increased over the past four years till 2020. The export of fruits and vegetables to Korea increased by 10.1% and to Japan by 20.1% in 2021. The major exports from the country to Korea include coconuts, bananas, mangoes, and dragon fruits.
Free trade agreements made by the Ministry of Agricultural and Rural Development (MARD) with Japan and Korea offered an advantage for domestic firms to boost exports. Currently, Vietnam exports to 60 countries, including countries in the European Union, the United States, China, and other Asian countries. With an increase in the number of free trade agreements with the trading countries, the regional exports of fruits and vegetables are expected to increase during the forecast period.
High Demand for Banana is Driving the Market
Banana is Vietnam's most important traditional fruit, both in terms of historical and economic significance. It is also an essential fruit for the Vietnamese people, widely known as 'Chuoi.' It is used in the kitchen and for spiritual purposes. In Vietnam, large varieties of bananas are grown, including Chuoi Tieu, Chuoi Qua Tạ, Chuoi Ngu, Chuoi Sap, Chuoi Cau, and Chuoi Su. Although each variety has a different taste and characteristic, all varieties have a natural and sweet taste. Chuoi Tieu and Chuoi Qua Tạ are used in medicine for anti-inflammatory protection and the treatment of high blood pressure. The average revenue per capita in terms of bananas rose by 9.25% from 2021 to 2022 and is expected to surge in the coming years.
Fresh banana leaf is commonly used to wrap sticky rice and make many different kinds of Vietnamese cakes like Banh Chung, Banh U, and Banh It. Small banana buds are used as a common ingredient for salads or served in noodle soups, especially clam noodle soup. With a wide range of applications in households and medicine, the demand for bananas is expected to grow during the forecast period.
