Vietnamese dragon fruit faces many challenges from the market.

Binh Thuan province has 27,000 hectares of dragon fruit orchards, producing over 600,000 tons per year, ranking first in the country. According to the Department of Agriculture and Rural Development of Binh Thuan province, the local dragon fruit has been exported to more than 20 markets worldwide, with Asia being the main destination, accounting for nearly 75% of the production volume and almost 60% of the value.

The Chinese market consumes approximately 80% of Vietnam's exported dragon fruit. (Photo: Thanh Binh/VNA)

Notably, Binh Thuan dragon fruit has been granted geographical indication status by the Intellectual Property Office ( Ministry of Science and Technology ). The "Binh Thuan Dragon Fruit" brand is protected by the European Union (EU). The image and trademark "Binh Thuan Dragon Fruit" have been registered and have been granted protection by 13 countries and territories.

Dragon fruit has been identified as one of the 14 key fruit crops in the "Plan for the Development of Key Fruit Crops until 2025 and 2030". For many years, this product has consistently ranked among the top in terms of agricultural export value.

However, according to Mr. Nguyen Do Anh Tuan, Director of the International Cooperation Department ( Ministry of Agriculture and Rural Development ), the dragon fruit value chain has been facing many challenges as China, India, and Mexico have successfully cultivated this fruit. In 2021, China announced a production of 1.6 million tons of dragon fruit per year, higher than Vietnam.

To ensure the sustainable development of Vietnam's dragon fruit value chain, the Ministry of Agriculture and Rural Development is orienting the development of the dragon fruit industry based on leveraging the potential and advantages of ecological zones, especially in the three key dragon fruit-growing provinces of Binh Thuan, Long An, and Tien Giang. Simultaneously, the focus is on improving product quality, added value, and competitiveness; protecting the ecological environment; and adapting to climate change.

Therefore, the dragon fruit industry needs to reorganize production towards cooperation and linkages along the value chain, overcoming the lack of connectivity between stakeholders in the chain, passivity in accessing export markets, vulnerability to market risks, and the need for a synchronized and efficient production and logistics system.

During the period 2021-2023, Binh Thuan received support from the Ministry of Agriculture and Rural Development and the United Nations Development Programme in Vietnam (UNDP) to participate in the project "Promoting private sector participation in low-carbon investment and climate change adaptation in agriculture in the implementation of Vietnam's NDC".

The project focuses on four main activities: promoting the development and improvement of the quality of dragon fruit supply chain linkages towards low-carbon, sustainable, and climate-resilient practices; promoting and developing the brand for dragon fruit products from Binh Thuan province; cooperating in promoting digital transformation in dragon fruit management and production; and attracting green finance and financial incentives to invest in environmentally friendly, low-carbon production and processing technologies.

In particular, the project has implemented an electronic traceability system at dragon fruit cooperatives and businesses. From an initial 50 hectares, the province has expanded to 269 hectares under carbon emission monitoring. As of the end of December 2023, approximately 23,000 tons of dragon fruit were being monitored for emissions.

Mr. Doan Anh Dung, Chairman of the People's Committee of Binh Thuan province, said that Binh Thuan aims to produce dragon fruit sustainably and responsibly, thereby helping cooperatives and businesses in the area to have the necessary conditions to sign sustainable consumption linkage contracts.

To ensure transparency from dragon fruit production to processing, Mr. Phan Van Tan, Deputy Director of the Department of Agriculture and Rural Development of Binh Thuan province, said that the locality has developed an additional production log system to track the carbon footprint of the product. Specifically, consumers can scan a QR code to verify the quality and environmental responsibility of the final product. This is an innovative and groundbreaking step in Binh Thuan's implementation of commitments to green growth and emission reduction.

Despite having the highest dragon fruit production and cultivation area in the country, Binh Thuan province acknowledges that the scale of production by households in the area is still relatively small and fragmented, and the volume of products meeting the standards of demanding markets is not yet significant. In addition, post-harvest preservation and the linkages between farmers and businesses are not yet truly sustainable.

Based on the results of the collaborative project with UNDP, Mr. Nguyen Do Anh Tuan suggested that major dragon fruit-growing localities continue to mobilize combined resources from the private sector (farmers, cooperatives, businesses), the state, and international support, with the state budget focusing on supporting infrastructure, science and technology, agricultural extension, and policy implementation.

"We need to transform the dragon fruit value chain towards increased efficiency, added value, low carbon footprint, and sustainability. To achieve this, we need to integrate and utilize all resources, leverage internal strengths, and create incentives for the participation of leading enterprises in the process of leading and transforming the dragon fruit industry," Mr. Nguyen Do Anh Tuan shared.

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