The advantage of transportation is allowing Vietnamese durian to increasingly gain market share in China.
On the online shopping platform Pupu, the price of a 6kg durian has dropped from 279 yuan to 179-209 yuan (from 980,000 VND to 627,000-733,000 VND).
Zhao Yu, a 37-year-old financial expert living in Shanghai, said that at her usual durian shop, the price of 1kg of durian has dropped from 56 yuan to 48 yuan (approximately 193,000 VND to 168,000 VND). This price drop, of course, doesn't significantly affect her decision to buy durian twice a month.
"When there's a large supply, the price will drop. The more durians pile up, the more obvious that becomes," Zhao said.
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In China, the competition for market share in the durian supply sector has become a showdown between two major rivals from Southeast Asia: Vietnam and Thailand. China's demand for durian is so high that the country constantly has to import it from third parties due to its small domestic production. Durian is highly prized among the people there, even used as a wedding gift.
According to China's General Administration of Customs, in April 2024, the import price of durian from Thailand was US$5.8/kg (VND 147,000), a slight increase compared to the average of US$5.38/kg (VND 137,000). Meanwhile, durian from Vietnam was imported at US$4.22/kg (VND 107,000).
International media outlets have reported that the intense heatwave in Thailand during April and May reduced the country's durian harvest, causing the fruit to crack or dry out inside.
A fruit import company in Zhejiang said that some shipments of durian from Thailand are in an "overheated" state, and are therefore being priced below market value.
Data from Chinese customs authorities also shows that in the first four months of the year, Thai durian exports to China lost 49% of their value compared to the same period last year. Despite this, Thailand still holds 66% of the durian export market share in China.
In contrast to Thai durian, Vietnamese durian imports into China are increasing sharply. In the first four months of 2024, Vietnamese durian imports into China reached 79.3 thousand tons, worth 369.8 million USD, an increase of 91% in volume and 81.9% in value compared to the same period in 2023.
Vietnamese durian accounted for 39.2% of China's total durian imports, a significant increase from 13.3% in the same period of 2023. This helped Vietnam maintain its position as the second-largest durian supplier to the Chinese market and encroach on market share from Thailand, according to the South China Morning Post.
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A Thai consultant told the Bangkok Post that, even ignoring temperature fluctuations, Vietnam is benefiting more than Thailand due to lower production costs, particularly transportation costs, by exporting goods overland.
Mr. Aat Pisanwanich, an advisor at the Smart Research Consulting Company of Thailand, believes that Vietnam will step in to capture the market. “If the Thai government does not intervene, Thai durian production will decrease by 53% in the next five years,” he added.
In other news, on June 11th, Nikkei Asia reported that Thailand is accelerating the connection of its national railway lines with the Laos-China railway network. The Thai-Laos railway is expected to be operational by the end of July, opening up opportunities for faster transportation of goods such as food, seasonal produce, and other perishable items, especially durian.
Vietnam is also actively promoting the signing of a protocol for the export of frozen durian to China, which could be finalized in the third quarter of 2024. At that time, the value of Vietnam's durian exports this year will increase by at least 200-300 million USD, according to Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association.
Nhung Bui
Source : https://baodautu.vn/sau-rieng-viet-de-doa-vi-the-top-1-cua-sau-rieng-thai-lan-tai-trung-quoc-d217503.html
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