Exporting Frozen Durian Via Official Channels to the Chinese Market

​(News Portal – Dong Nai) - Durian is currently among the top crops in terms of income generation. Recently, localities in the province have focused on expanding durian cultivation. Dong Nai has been particularly keen on developing planting areas and attracting businesses (enterprises) to invest in packaging, preliminary processing, and processing facilities to meet export standards. 

Frozen Durian for Export at Various Facilities in Xuan Dinh Commune, Xuan Loc District. Photo: Song Le

Recently, the Vietnamese Ministry of Agriculture and Rural Development and the Chinese General Administration of Customs signed a protocol on inspection, quarantine, and food safety for frozen durian exported from Viet Nam to China. The official opening of this major market for frozen durian products presents a significant opportunity for Viet Nam's durian industry. Accordingly, enterprises exporting frozen durian are paying close attention to this development to capitalize on the opportunity to officially export to this billion-people market.

Vast Potential  

In 2023, Viet Nam exported about 500,000 tons of durian, earning $2.3 billion USD, with over 80% of exports going to China. According to forecasts by the Viet Nam Fruits and Vegetables Association (Vinafruit), frozen durian exports could reach between $400 million and $500 million USD in 2024, and the product is expected to join the "billion-dollar" agricultural export club by 2025.

With nearly 13,000 hectares of durian cultivation, durian is one of the key crops in Dong Nai. Dong Nai also leads the Southeast region in durian planting area and is one of the five localities with the largest durian export volume to China via official channels. In 2023, Dong Nai exported more than 47,500 tons of durian to China, valued at over 3.3 trillion VND.

The province has also attracted numerous businesses to invest in frozen durian for export. According to several enterprises involved in durian segmenting and freezing in the province, exporting frozen durian to China has been eagerly anticipated for many years. Freezing durian is a solution that addresses the limitations of only exporting fresh fruit, especially considering the short shelf life of fresh durian, which often limits sales to markets close to the border. With frozen durian, enterprises do not have to worry about preservation time, allowing the product to penetrate deeper into China's vast and highly potential interior market. Exporting frozen durian offers many advantages since the fruit flesh accounts for only about 30% of the total weight, with the rest being discarded peel, meaning only the edible portion is exported, greatly reducing transportation and other costs. Additionally, frozen durian exports are not subject to time pressures, ensuring quality and allowing for year-round exports, unlike fresh fruit, which is dependent on seasonal harvests. Frozen durian export also significantly enhances the value of this fruit, as nearly all harvested durian can be exported rather than just a select portion of fruit that meets size and quality standards for fresh fruit export.

Multiple Challenges

The Chinese market is shifting towards importing frozen durian to enhance economic benefits and protect the environment. According to Vinafruit, China's opening of its market to Viet Nam's frozen durian will bring significant growth to the industry. However, it is important to note that when shifting to frozen durian, Viet Nam's advantage in logistics costs and proximity to China will be nearly nullified when competing directly with products from Thailand and Malaysia. There are many challenges that Viet Nam's frozen durian industry must recognize and prepare for, particularly in terms of frozen durian production, as Vietnam's technological capacity remains limited.

Mrs. Dang Thi Thuy Nga, Director of Xuan Dinh Agricultural Service Cooperative (Xuan Loc District), shared that the cooperative has the advantage of expanding its durian specialization area, certified under VietGAP, to over 120 hectares. Additionally, the cooperative purchases durian from other growing areas within the province and from neighboring provinces. The cooperative has the advantage of controlling durian quality from the planting area and is keen to invest in frozen durian production to increase the value of this crop. However, the cooperative faces challenges with investment capital and hopes to access preferential financial sources.

Mr. Vo Van Phi, Vice Chairman of the Provincial People's Committee, emphasized that the organization and development of the durian industry require the collaboration of various government agencies, associations, and specialized sectors to create favorable conditions for businesses and local farmers. The province will focus on creating a favorable environment to attract enterprises to invest in deep processing, thereby increasing the value of this key product in the province. ​