Vietnam's Agricultural Surge in the Chinese Market

With China consuming over half of its fresh banana exports, Vietnam's Hoang Anh Gia Lai (HAGL) highlights the colossal demand for Vietnamese agricultural products in China. HAGL, managing over 7,000 hectares of banana plantations, supplies hundreds of thousands of tons annually to China, Japan, South Korea, and domestically.

"Our products are everywhere in China," says Doan Nguyen Duc, HAGL's chairman, emphasizing the inability to meet the soaring demand.

Leading the Banana Export Race

Vietnam has outpaced the Philippines to become China's top banana supplier, with bananas ranking as the fourth-largest fruit export to China, following dragon fruit, durian, and coconut.

Bananas at a packaging facility of Hoang Anh Gia Lai. Photo by VnExpress/Thi Ha

A Multibillion-Dollar Trade Relationship

Agricultural exports to China, featuring 14 key products, contribute billions to Vietnam's economy annually. Last year, China imported $4.6 billion worth of Vietnamese fruits and vegetables, with durian, dragon fruit, and banana exports leading the charge.

Challenges and Opportunities Ahead

Despite the lucrative market, China's recent stringent technical standards, including tests for cadmium and auramine O, have posed challenges, notably slowing durian exports. However, Vietnam sees vast potential for growth, with plans to expand exports of specialty fruits and enhance quality control to meet China's demands.

Durians at a Hoang Anh Gia Lai orchard. Photo by VnExpress/Thi Ha

Strengthening Bilateral Ties

Vietnam and China are collaborating on infrastructure projects, like railroad lines, to boost trade connectivity. Additionally, Vietnam is leveraging free trade agreements to diversify its market reach and reduce dependency on a single economy.