Vegetables & fruits were one of the few agricultural goods in Vietnam that increased in export turnover in the first quarter of 2023. Fruit and vegetable exports reached USD 982 million in the first quarter of this year, increasing 16.2% from the same time in 2022.
According to Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetables Association, China reopening the border will be essential in assisting Vietnam's fruit and vegetable exports to rise in the first quarter.
Vietnam's fruit and vegetable shipments to China fell precipitously in 2022 as a result of the country's Zero Covid policy. This was the first time in history that Vietnam's fruit and vegetable exports saw a significant reduction in terms of export turnover, with the Chinese market accounting for less than half of overall export value. The tight borders of the billion-person market were also the primary reason for an overall reduction in Vietnam's fruit and vegetable exports compared to 2021.
Now that China is reopening, Vietnam's fruit and vegetable shipments to the country are resuming. Fruit and vegetable shipments to China reached USD 576 million in the first quarter, accounting for 58.7% of total fruit and vegetable export value, an increase of more than 27% over the same time in 2022. Other overseas markets continue to develop for Vietnam's fresh fruits, such as pomelos licenced for sale to the United States, fresh lemons and pomelos licenced for shipment to New Zealand, and fresh longans licenced for export to Japan.
The EU confirmed earlier this year the elimination of official and urgent control over four Vietnamese spices, including parsley, coriander, basil, and mint products. As a result, as previously stated, Vietnam's vegetables and spice goods are no longer regulated at 50% when exported to the EU market. This announcement will shortly boost the export of these four spices, as well as vegetable and fruit exports to the EU.
Dang Phuc Nguyen stated that if the fruit and vegetable protocols signed with China and free trade agreements such as EVFTA, CPTPP, and RCEP are utilized, the growth of Vietnam's fruit and vegetable exports is expected to be 20% higher than in 2022, reaching the USD 4 billion mark for the first time in history. Despite the fact that market opportunities are many, Vietnam must accelerate the adoption of solutions to address the difficulties and constraints of the fruit and vegetable business.
To begin, a solution must encourage investment in deep processing so that Vietnamese vegetables and fruits may enter complex markets. In reality, in recent years, the export value of Vietnam's processed vegetables and fruits has steadily increased in order to fulfil the needs of the global market. The export of processed fruits and vegetables crossed the USD 1 billion barrier for the first time in 2022, gaining 9.8% over 2021 and accounting for nearly 30% of total vegetable and fruit export value.
The Ministry of Agriculture and Rural Development must expedite the signing of phytosanitary protocols with China for commodities officially exported to this market. It has still to establish phytosanitary procedures for dragon fruit, mango, longan, watermelon, jackfruit, and rambutan, as well as to open additional doors for other Vietnam fruit and vegetable goods such as green-skinned pomelo, fresh coconut, avocado, pineapple, and breast milk.
