Export of vegetables and fruits to Thailand market

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Dragon fruit: Vietnamese dragon fruit almost dominates Thailand market. Packing export dragon fruits in Hung Thinh commune (Trang Bom district). Photo: Nam Vu

Facing difficulties in exporting fresh fruits and vegetables affected by the Covid-19 epidemic, Vietnam is trying to expand export markets, including the Thai market, which is still considered a competitor of export with Vietnamese agricultural products.

A billion-dollar import market

According to the Vietnam Trade Office in Thailand, in 2019, its own exports of fresh and processed fruits reached about 3.6 billion USD. However, Thailand also imported more than 3 billion tons of fresh fruit with a value of over 1 billion USD; 850 million tons of vegetables and about 600 million USD from other countries. This shows that the export power of this agricultural product is also in great demand for fruits and vegetables. Thailand is the leading market for Vietnam's agricultural imports in ASEAN, especially fresh fruits and vegetables. Up to now, Thailand has only officially granted permission for 4 Vietnamese fruits: dragon fruit, mango, longan and lychee to be exported to this country, so there is still a ‘big gap’ to increase exports of other agricultural products.

Ms. Tran Thi Thanh My, Commercial Counselor, Vietnam Trade Office in Thailand offered the following opinion: “We must see Thailand as a trading partner instead of a competitor. Because Vietnam is exporting many good agricultural products, especially fresh fruits and vegetables to Thailand. As an example, we are the main exporter of dragon fruit to Thailand and according to Thai Customs, Vietnam accounts for 90% of imported dragon fruit of this country.”

According to businesses that export agricultural products, in addition to fresh fruits, Thailand has a huge import demand for vegetables that they cannot produce or produce very little like carrots, potatoes and a variety of herbs, etc. In addition, there are many potential fruit products exported to this market, such as businesses trying to export avocados. In addition, there are many potential fruit products exported to this market, such as businesses trying to export avocados. Because this is a fruit that Thailand has to import, and currently the price of 1 avocado sold in Thai supermarkets is up to 70 thousand VND. It is expected that with the participation of Thai importers in Vietnam, more fruits and vegetables will be exported to this market in the coming time.

A lot of access channel

  

Vietnam is increasing the export of agricultural products to Thailand, the market is close but not yet exploited effectively - a very good channel to promote agricultural products on the international field.

Ms. Tran Thi Thanh My shared that Thailand attracted a lot of tourists, only Bangkok in 2019 welcomed 39.8 million tourists. These tourists are not only consumers but also ambassadors to promote Vietnam's fruits and vegetables throughout the country through the Thai market. Thailand is also considered the processing center of Southeast Asia. Therefore, there is a need for the country to diversify its sources of raw materials for processing, including sources from imports that Vietnam can take advantage of.

Recently, many Thai corporations have stepped up their investments in Vietnam. This is an advantage to boost exports of agricultural products in particular and fruit and vegetable products to this market. Typically, every year, Center Retail Group with Big C supermarket chain cooperates with the Ministry of Industry and Trade to organize programs to promote Vietnamese goods into Thailand.

Mr. Paul Le, Vice President of Central Retail Group of Thailand (investor of Big C supermarket system and many other retail systems) commented: “Many Vietnamese fruits are delicious and perfectly meet the requirements of demanding markets, including Thailand. We really want to boost the import of Vietnamese fruits and vegetables, especially lychee into Thailand”. According to Mr. Paul Le, every year, Central Retail Group organizes the “Vietnamese Goods Week in Thailand” program to support Vietnamese businesses to understand the market and tastes of Thai consumers.

Vietnam also has the advantage of exporting to Thailand that few other markets in the world have - the large Vietnamese diaspora living in the country. Among them, many people own supermarkets, distribution stores and supply of goods, which is a favorable condition to market Vietnamese agricultural products to the Thai people.

By Nam Vu