Durian Exports Poised to Reach $4 Billion Amid Strong China Demand

Durian exports are expected to hit $3.85-4 billion this year, with the Ministry of Agriculture and Rural Development completing remaining procedures, Deputy Minister Dang Ngoc Diep said at a government press conference on Thursday. Durian is one of the agricultural products with relatively high value, boasting a cultivation area of about 200,000 hectares and an output of approximately 2.08 million tonnes. It is a key crop of the agriculture sector, accounting for about 40% of its total export turnover. In the first eight months of the year, durian exports were estimated at $1.95 billion, with exports to China alone accounting for $1.85 billion, or 95% of the total. This high dependency on the Chinese market underscores a significant aspect of Vietnam's agricultural export structure. To address difficulties facing the fruit’s exports, the Ministry of Agriculture and Rural Development has sent working delegations, led by deputy ministers, to work directly with localities, particularly high-output growing areas in the Central Highlands, the southeastern and southwestern regions, and Dong Nai province, to remove bottlenecks. On July 1, the ministry launched origin tracing through its electronic system. "We met with the trade counsellors of the US and China. They highly appreciated the ministry's implementation of origin tracing for the first time and its efforts to promote Vietnamese agricultural products as reputable brands domestically and internationally," Diep said, noting this as a solution to boost exports and increase durian's value. The ministry has also worked to address difficulties related to the issuance of growing-area codes. "All durian growing areas are now decentralized, allowing ward- and commune-level authorities to issue growing-area and packing-facility codes, making the process more convenient," he said. Following a meeting between ministry leaders and the Chinese side on August 14, the General Administration of Customs of China granted 567 growing-area codes for Vietnamese durian, bringing the total number to more than 1,800. The deputy minister also pointed out several limitations in the durian sector, including rapid growth that has not yet been matched by the organization of value chains. In addition, technical and market requirements are becoming increasingly stringent. He also highlighted challenges from international competition, noting that countries such as Malaysia and Thailand have introduced policies to promote durian exports to China. Regarding measures to be implemented, the ministry will step up trade promotion and diversify export markets, including continuing negotiations to expand access and increase share in promising markets such as India, Australia, and New Zealand. In July, India agreed to allow Vietnam to export durian to its market. This is a market of more than one billion people with very strong demand in the coming period. Works are underway to expand export promotion activities in India, he said. The second measure is to reorganize production and develop sustainable raw-material areas, while reviewing production-area planning to ensure compatibility with land, water resources, climate and infrastructure conditions. The third is to standardize quality, food safety and origin tracing while improving research, application and transfer of science and technology, as well as digital transformation. The two other measures are developing storage, processing and logistics infrastructure; and expanding and strengthening the capacity of the laboratory system.