Binh Thuan dragon fruit is considered an agricultural product with competitive advantages in both domestic and foreign markets. However, recently, the export situation of local goods, including agricultural products (mainly dragon fruit), has encountered many difficulties. Therefore, the locality will continue to increase trade promotion support to expand the dragon fruit consumption market with a forecast output of about 663,000 tons in 2023.
The big picture
In recent times, Binh Thuan dragon fruit has been mainly consumed in the domestic market (about 15% of output) and exported (accounting for 85% of output). Of the exports, only 2-3% are official, the rest are traded through border trade through the Chinese market, or linked with businesses outside the province for direct export.
It is known that the official export market of Binh Thuan dragon fruit is currently Asia (accounting for about 75% of output), including: China, Hong Kong, Taiwan, Philippines, Korea, Singapore, Thailand, Malaysia, Myanmar, Indonesia, Qatar, United Arab Emirates... While the European market (accounting for about 8%) includes Germany, the Netherlands, Russia, Spain, the American market (accounting for about 15%) is Canada, the US and the Oceania market (accounting for an insignificant proportion) is mainly consumed in Australia, New Zealand... For Japan, Binh Thuan dragon fruit has now been successfully registered for geographical indication protection and is the first step in creating a competitive advantage for local specialty products in this market.
Overall, Binh Thuan dragon fruit consumed in the form of small-scale exports still accounts for the majority of output (about 70 - 80%), which is purchased by businesses, establishments, and business households and transported to the northern border gates for export to China. Mainly through the following pairs of border gates: Tan Thanh (Lang Son) - Po Chai (Guangxi, China), Kim Thanh (Lao Cai) - Ha Khau (Yunnan, China), Thanh Thuy ( Ha Giang ) - Thien Bao (Yunnan, China), Mong Cai (Quang Ninh) - Dong Hung (Guangxi, China).
Still having trouble
At the end of the first quarter of 2023, the province's export turnover reached 164 million USD, down nearly 11% over the same period last year and reaching 20% of the plan, of which agricultural products reached 2.9 million USD, down 3.26%. Particularly, dragon fruit exported through official channels in the first quarter of this year was 1,150 tons with a turnover of 1.8 million USD, down 13.17% over the same period last year... Regarding unofficial exports, the Department of Industry and Trade said that according to data compiled from the northern border provinces, in the first 2 months of 2023, the amount of dragon fruit exported through the Vietnam - China border gate was about 84,300 tons, most of which was still Binh Thuan dragon fruit. However, in the Chinese market, the General Department of Customs of this country has issued a number of Orders (No. 248, 249, 259) in the field of food safety management for import and export. At the same time, tighten the food safety management process for imported goods to the Chinese market and strengthen control of foreign food import production enterprises... Therefore, when exporting to the Chinese market, all procedures must be carried out; in case the goods are stored for a long time, it will affect the product quality and cause economic losses to the enterprise. In addition, local enterprises still lack information and database of enterprises officially importing dragon fruit from the Chinese market and other dragon fruit import markets.
Recently, promoting dragon fruit exports to the European market, Southeast Asia, and Northeast Asia is still facing difficulties. In addition, annual output and export turnover increase slowly. Explaining this, the functional sector said that because the province's enterprises mainly process or sell Binh Thuan dragon fruit to other enterprises for export, it does not reflect the revenue earned by the locality... In exporting dragon fruit, the province also aims to develop new markets such as the Middle East, India and countries that have signed free trade agreements with Vietnam to boost exports, in order to reduce dependence on the Chinese market. And despite being interested in implementing, Binh Thuan dragon fruit exports are facing difficulties in expanding the consumption market due to the disruption of the supply chain due to the impact of the Covid-19 epidemic that has strongly broken out in some countries in recent times...
Expand the market
In fact, most of the enterprises participating in exporting dragon fruit locally are small and medium-sized, with limited funds for trade promotion activities. Therefore, participation in trade promotion programs is also limited, so support from the State is needed, especially for trade promotion activities abroad.
In order to expand the consumption market, the locality will pay attention to supporting the Binh Thuan Dragon Fruit Association and agricultural product export enterprises (mainly dragon fruit) to participate in trade promotion programs. Accordingly, continue to effectively implement the Plan to develop and expand the consumption market for Binh Thuan dragon fruit products domestically and internationally in the period of 2021 - 2025. In addition, it also supports Binh Thuan dragon fruit processing and exporting enterprises to participate in prestigious fruit and vegetable specialized exhibitions held annually... With China, it focuses on participating in large-scale, highly international fairs and exhibitions to seek trading opportunities, connect directly with reputable import partners, and promote official exports to this market. On the other hand, we will consolidate and expand traditional markets, promote the opening of new and potential markets, focusing on the markets of India, Pakistan, Bangladesh or Middle Eastern countries, countries that have signed free trade agreements with Vietnam.
Regarding this issue, the provincial authorities have requested the Ministry of Industry and Trade to continue supporting the locality in promoting the consumption and export of dragon fruit (both directly and online) through markets, especially official exports to China. Or such as supporting the propaganda and promotion of Binh Thuan dragon fruit products and introducing partners to trade, import and distribute dragon fruit products at the display booth during the locality's organization of a trade delegation of Binh Thuan province to participate in the Shanghai - China International Import Fair (according to the National Trade Promotion Program in 2023).
In addition, the Ministry of Industry and Trade is also requested to recommend the Ministry of Agriculture and Rural Development to include dragon fruit in the group of national key products to have a strategy to build it into a sustainable development industry. Pay attention to organizing training courses to guide the inspection, supervision and guidance on documents and procedures for requesting codes for growing areas, packaging facilities as well as regulatory requirements and technical barriers of export markets... For Vietnamese trade counselors abroad, the Department of Industry and Trade of Binh Thuan also requested to continue supporting the locality to promote Binh Thuan dragon fruit in foreign markets.
It is estimated that this year, the province's dragon fruit output can reach 663,000 tons (equal to 111% of the annual plan), with about 150,000 tons in the second quarter of 2023 alone. However, during this time, Binh Thuan dragon fruit participating in export must compete on price with similar products from countries such as Thailand, China and many other tropical fruits in season, so consumption may encounter many difficulties...
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