China’s decision to reopen border gates on January 8 to boost trade was good news for Vietnamese and Chinese import and export companies.

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam said that over 500 farm produce trucks go through Lao Cai border gates a day and over 800 trucks get customs clearance in Lang Son.

Le Thanh Hoa, director of SPS Vietnam, said in 2022, Vietnam’s farm exports to China brought turnover of $14 billion. The figure is small compared with the country’s total import turnover of $260 billion a year, just accounting for 5 percent.

Nam said that Vietnam’s seafood exports to China via Yunnan are expected to increase. Veggie and fruit exports to the market will also go up. 

The Ministry of Agriculture and Rural Development (MARD) has granted more than 2,000 codes to companies to export products to China. The ministry is also negotiating with China on full-tax exports of pomelo, avocado, custard apple, rose apple, cardamom and pineapple.

Tra My, president of the Provisional Association of Vietnamese Enterprises in China, warned that the market is no longer easy to please. Companies must now export high-quality products or risk getting rejected.

My returned to Vietnam this time with many orders, including one for 150,000 tons of durian.

Vietnam’s fruit quality is not inferior to rivals but My noted that Vietnam is weak at branding.

Vietnam’s durian, with no brand, can sell for VND200,000 per kilogram, while Malaysia black prickly durian sells at $1,000 per fruit. 

Shandong, with 107 million people and the third largest GDP value in China, only imports Thai durian and Filipino bananas.

My said that Vietnam needs to register a brand for its durian. She said that enterprises should ship products by sea and advertise more in the Chinese market.

Pham Ngoc Thanh, deputy general director of Dong Giao Food Export, said that promoting and advertising products to Chinese customers is a necessity.

“We often attend trade fairs in China. This is the quickest way to introduce food specialties to Chinese consumers,” he said.

A representative of the Asian and African Market Department under the Ministry of Industry and Trade (MOIT), stressed that while trying to open new markets, Vietnam needs to retain loyal markets, including China.

Because of varying tastes among localities, he advised enterprises not to export uniform products, but export products that fit different areas.

Exports to China soar

Not only durian, but banana, jackfruit, watermelon and dragon fruit are also being exported to China.

The Lao Cai Border Gate Management Board said the total import-export turnover through Lao Cai border gates reached $82 million in Jan ($48.3 million in export turnover and $33 million in import).

As many as 6,713 farm produce trucks went through the Kim Thanh – Lao Cai international road border gate in January, valued at $59 million, including $33 million worth of exports.

“The export products were mostly fresh fruit from the south, including dragon fruit, banana, watermelon, rambutan and jackfruit. In January, nearly 600 dragon fruit trucks came to Lao Cai with exports to China,” the management board said.

Meanwhile, turnover for exports going through border gates in Lang Son increased by 150 percent in Jan 2023 compared with the same period last year, reaching $100 million. 

The trucks now go through customs clearance within a day. Congestion no longer exists.

In Lang Son province, 1,000-1,200 trucks go through five border gates a day, 75 percent of which are farm produce and fruits.

As exports are on the rise, domestic prices have also escalated. In Tien Giang, mango prices have increased by VND10,000 per kilogram to VND80,000, and dragon fruit by VND3,000 to VND28,000.

Tam An