At a conference focused on exporting frozen durian to China on the morning of September 19, Mr. Nguyen Quang Hieu, Deputy Director of the Plant Protection Department (Ministry of Agriculture and Rural Development), stated that China currently imports fresh durian worth $7 billion annually and expects this figure to exceed $10 billion in the coming years. Additionally, China imports $1 billion worth of frozen durian, a number anticipated to grow rapidly in the forthcoming years.
Mr. Hieu highlighted that Vietnam has been exporting fresh durian to China since mid-2022. In August, Vietnam and China signed an additional protocol for exporting frozen durian to China, targeting a market of over 1.4 billion people.
Fresh durian comprises only 30% edible pulp, with 70% consisting of seeds and shells that must be discarded, leading to environmental pollution. Mr. Hieu noted that Chinese consumers are likely to shift towards frozen durian products, which better align with modern lifestyles. Frozen durian offers extended shelf life, immediate consumption, or use as ingredients in other products, making it a highly promising market for Vietnamese frozen durian exports.
Mr. Hieu emphasized that the frozen durian market presents immense potential for Vietnam, with projections indicating that frozen durian exports could generate an additional $300 million in revenue in 2024 if companies successfully complete the necessary registrations to expedite exports.
Despite the lucrative opportunities, the Vietnamese durian industry faces significant challenges. For instance, China is experimenting with durian cultivation on 2,700 hectares in the southern part of Hai Nam Island. Moreover, some Vietnamese businesses have struggled to adhere to the signed protocols, resulting in numerous technical violations in recent times.
“If businesses do not rectify and enhance their compliance with regulations, China will implement corrective measures. It is unacceptable that a few non-compliant businesses are impacting the entire industry,” Mr. Hieu warned.
Mr. Hieu further explained that frozen durian is classified as "food" under Chinese regulations and must comply with Customs Order 248. Exporting companies must register and receive approval from Chinese authorities. Additionally, businesses must implement food safety management systems evaluated against 13 criteria to meet China's standards.
China has stringent regulations to ensure the safety of imported products for its consumers. Therefore, exporters must submit comprehensive documentation and satisfy all criteria to facilitate smooth export operations to the 1.4 billion population market, according to Mr. Hieu.
“Vietnam will inspect production, processing, and preservation facilities exporting frozen durian to China. Qualified businesses will be introduced to Chinese authorities,” Mr. Hieu stated.
Furthermore, Vietnamese exporters must source their durian from registered orchards approved by China. Vietnam will oversee and monitor these supply sources to minimize the use of agricultural inputs and ensure environmental sustainability.
Mr. Huynh Tan Dat, Director of the Plant Protection Department, emphasized the importance of Vietnamese exporters thoroughly studying Chinese regulations and strictly adhering to both the signed protocols and Chinese national requirements. He urged businesses to proactively establish robust supply chains from cultivation to packaging and export, ensuring traceability and compliance upon request.
Additionally, Mr. Dat recommended that the industry focus on building strong brands for Vietnamese durian and frozen durian products. Investing in freezing technology, processing techniques, and product quality upgrades is crucial to meet international standards.
The Ministry of Agriculture and Rural Development and the Plant Protection Department will direct specialized departments to collaborate with local authorities, businesses, and packaging facilities to effectively implement the frozen durian protocol regulations in the coming period.
According to the General Department of Customs, in the first seven months of 2024, Vietnam's durian exports reached over $1.6 billion, marking a 50% increase compared to the same period in 2023. China leads the market with a turnover of $1.47 billion, up nearly 53%. Thailand follows in second place, importing $65 million worth of Vietnamese durian, a 51% increase from the previous year. Exports to South Korea, Papua New Guinea, Japan, and Cambodia have also surged, ranging from 50% to several thousand percent growth.
Tam An