MOIT VIETNAM | Fruit and vegetable exports are showing positive signs to recover after the first three quarters of the year plunged

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Fruit and vegetable exports are showing positive signs to recover after the first three quarters of the year plunged

27th October 2020 post by MOIT Vietnam

Despite the country's severe situation, there are businesses like Doveco that are unaffected by this epidemic. Sharing with the newspaper, Mr. Dinh Gia Nghia, Deputy General Director of Doveco fruit and vegetable production and export, said:

The reason behind the COVID-19 does not affect the company much because large customers entrust in the company's supply ability. He said that The company has a lot of orders for the rest of the year since the Europe–Việt Nam Free Trade Agreement (EVFTA) is proving beneficial. Before the EVFTA came into effect in August, exports of vegetables and fruits were down with prices dropping as a result of lack of demand.

The first nine months of the year saw a 11 per cent fall in exports but the last quarter is seeing a recovery in terms of orders. Since the EVFTA trade agreement took effect, the amount of vegetables and fruits exported has increased significantly. Businesses also take this opportunity to have large expansion plans to take advantage of the EVFTA agreement most effectively, ensuring future growth. Nguyen Quoc Toan, Director of the Department of Agro-product Processing and Market Development, Ministry of Agriculture and Rural Development, said that the agricultural sector is working hard to reach the export target of 40 billion USD this year, and vegetables and fruits are expected to contribute about USD 3.5. - 3.6 billion

 

EVFTA is effective from August 1 that is creating conditions for us to export to many EU markets at good prices thanks to the tax reduction with strategic items such as cold pineapple, canned pineapple, concentrated pineapple juice that concentrated passion fruit juice, cold lychee fruit, cold apricots and spinach. In the first 9 months of 2020, Vietnam's fruit and vegetable exports recorded a decline of 11% year-on-year (equivalent to a decrease of US $ 300 million) but the remaining quarter of the year is showing many good signs of orders to the fruit and vegetable industry. Along with Doveco, many large enterprises in the fruit and vegetable industry also broadcast good information about exports.

 

According to forecasts, by 2022 the global market for processed fruits and vegetables will reach USD 346 billion. The fruit and vegetable industry in Vietnam still has plenty of room for export growth when the investment strategy develops in a closed production chain to ensure traceability in the production process. In particular, EVFTA is creating conditions for professional manufacturers to have great business opportunities, so investment projects in this period have the most advanced technology, processing products that consumers have used in the US, EU, Japan preferably. Project with a complex of 3 factories, including: Factory processing concentrated juice and puree, design capacity of 20,000 tons / year, technology and equipment of Tropical Food (Italy); Frozen fruit and vegetables factory, designed capacity of 10,000 tons of products / year, Japanese technology and equipment; Canned fruit and vegetables factory with a designed capacity of 20,000 tons of products / year. On each production line, it is possible to simultaneously process a variety of vegetables and fruit materials available in Son La.

 

The major project of TH Group in Son La was recently inaugurated to boost the fruit and vegetable export industry. Accordingly, the first phase, Van Ho herbal and fresh fruit processing factory, with a processing capacity of 300 tons of vegetables, fruits and herbs, with an investment of 1,200 billion VND, has been put into operation. Phase II will be deployed after 2025, specializing in processing fruits such as longan, guava, mango, oranges, passion fruit, apple cat ... and produce juices of natural vegetables, tubers and fruits for export.

 

Doveco Fruit and Vegetable Processing Center is expected to be completed by the end of 2021, when it comes into operation, it will purchase and process hundreds of thousands of tons of vegetables and fruits of all kinds such as passion fruit, mango, pineapple, banana, avocado, Sweet corn, spinach, soybeans ... with an estimated export turnover of about $ 90 million. Mr. Nguyen Quoc Toan, Director of Agro Processing and Market Development Department (Ministry of Agriculture and Rural Development) said that the agricultural sector is making efforts to finish with an export turnover of 40 billion USD this year, in which vegetables and fruits will contribute about 3.5-3.6 billion USD. With large projects that have been invested by enterprises, the goal of increasing production capacity and increasing export turnover is becoming a reality.