We need to untangle the "knot" from within.

Two major "bottlenecks"

China is the largest consumer market for bird's nest, accounting for 80% of global consumption. It is also the world's largest importer of bird's nest, and imports are steadily increasing.

Bird's nest products from Hai Yen Nha Trang Company. Photo: Tam An

According to the Vietnam Swiftlet Association, in 2023, China imported 557 tons of bird's nests, a 23.4% increase compared to 2022. In the first quarter of 2024, China imported 145 tons of bird's nests, nearly 30% of the total bird's nest imports in 2023. This indicates that the demand for bird's nest imports in the Chinese market continues to increase and may rise by approximately 15% this year.

While China's demand for imported bird's nests is increasing, Vietnam's bird's nest exports to this market remain modest. In the first quarter of 2024, Vietnamese bird's nest businesses only exported 2 tons of bird's nests to China. One of the reasons for the low export volume to China, according to businesses, is that most Chinese consumers are still unaware of Vietnamese farmed bird's nests.

Ms. Trinh Thi Hong Van, Deputy General Director of Khanh Hoa State-owned Bird's Nest Company Limited, stated that Vietnamese bird's nests exported to this country face fierce competition from similar products from Indonesia, Thailand, and Malaysia, which have long been popular. Although the quality of Vietnamese natural bird's nests is better, they are often compared in price to those from other countries. Without clarification, it will certainly be difficult for Vietnamese bird's nest products to develop in the future.

Mr. Le Thanh Dai, Chairman of the Vietnam Swiftlet Nest Association, shared that for many years, Chinese people have been accustomed to using imported swiftlet nests from Malaysia and Indonesia. Regarding Vietnamese swiftlet nests, the Chinese are almost only familiar with the Khanh Hoa brand, but Khanh Hoa swiftlet nests are from islands and therefore very expensive, only affordable to the wealthy. Meanwhile, Vietnamese farmed swiftlet nests, which are more accessible to the general consumer, are still relatively unknown.

On the other hand, the vast majority of swiftlet farms lack legal documentation, significantly impacting the supply of raw swiftlet nests for processing and export. Although Government Decree 13/2020/ND-CP, which provides detailed guidance on the Law on Livestock, dedicates a separate article to the management of swiftlet farming, with regulations on farming areas and facilities, these are the initial legal foundations for the development of the swiftlet industry.

However, to date, the majority of swiftlet farms still lack complete legal documentation. Swiftlet farms are structures built for breeding purposes, not for residential use, and there are no established procedures for licensing. Therefore, currently over 90% of swiftlet farms lack construction permits and legal recognition. This is a significant disadvantage for the swiftlet industry, as existing farms represent a substantial resource that swiftlet farmers can use as collateral to secure bank loans and invest in post-harvest processes to enhance the value of swiftlet nests.

Mr. Hong Dinh Khoa, Chairman and General Director of Vietnam Quoc Yen Joint Stock Company, stated that when businesses export finished bird's nest products, the export dossier must include documents proving the origin of the raw bird's nests. However, the vast majority of bird's nest farms in Vietnam were previously built in violation of regulations.

Although Decree 13 allows these types of swiftlet farms to exist, provided they maintain their original state and do not expand, many localities are still hesitant to acknowledge their existence, thereby limiting the verification of the origin of raw swiftlet nests.

Improve the legal framework and boost product promotion and marketing.

The swiftlet farming industry has only developed in the last 20 years or so. It's only in the last 10 years that it has become a truly significant economic sector. Currently, Vietnam has over 22,000 swiftlet farms. The production of swiftlet nests reaches approximately 150 tons, valued at over 600 million USD.

Hai Yen Nha Trang Company has exported a shipment of high-quality bird's nests to China. Photo: Tam An

However, the lack of uniformity in state management of swiftlet farming is one of the obstacles to swiftlet nest exports, as businesses face difficulties in verifying the origin of raw materials.

According to Mr. Le Thanh Dai, currently, due to the lack of specific guidelines, localities that are interested in and want to promote the development of the swiftlet farming industry are enthusiastically certifying swiftlet farms according to Decree 13. Meanwhile, many localities have not yet certified them, citing the lack of guidelines.

To address this issue, Mr. Dai suggested that relevant ministries such as the Ministry of Agriculture and Rural Development, the Ministry of Natural Resources and Environment, and the Ministry of Construction should sit down together to jointly issue guidelines on a unified process that localities can apply to the management of swiftlet farms.

Alongside perfecting the legal framework, in order for a large number of Chinese consumers to know about and be willing to buy Vietnamese bird's nest, in addition to improving the quality of exported bird's nest, it is necessary to strengthen marketing and promotion programs for Vietnamese bird's nest in the Chinese market. This will let Chinese consumers know that, besides the Khanh Hoa bird's nest brand originating from island nests, Vietnam also has other bird's nest brands originating from house nests, which are also of very good quality.

The Vietnam Swiftlet Association will be collaborating with China's CCTV television channel. The two sides will cooperate to promote and showcase Vietnamese swiftlet nests to all regions of China. The goal of this program is to raise awareness among Chinese consumers about Vietnamese swiftlet nests, highlighting their quality, nutritional content, and notable brands. With such a well-planned promotional collaboration, the Vietnam Swiftlet Association hopes to build trust with Chinese consumers and establish a strong foothold for Vietnamese swiftlet nests in this market.

On November 16, 2022, the Minister of Agriculture and Rural Development officially signed the protocol for the official export of bird's nests to China. To date, the General Administration of Customs of China has granted licenses to seven Vietnamese enterprises to officially export bird's nest products to this market.

With prior experience exporting bird's nests to the Chinese market, Ms. Trinh Thi Hong Van believes that, in addition to quality, traceability, and meeting food safety standards, businesses need to thoroughly understand market preferences to produce suitable products. After all, customers determine 90% of a business's success.

Source: https://congthuong.vn/xuat-khau-to-yen-sang-trung-quoc-can-go-nut-that-tu-noi-tai-347631.html