Economy

Vietnam's Durian Exports Face Sharp Decline Amidst China's Stricter Import Controls

Vietnam's Durian Exports Plummet

According to Vietnam Customs, durian exports have seen a dramatic 58% year-on-year drop in the first five months, totaling $386 million. This decline has significantly reduced durian's share in Vietnam's fruit and vegetable exports from 35% to just 17%.

China's Role in the Decline

China, the primary market for Vietnam's durian, has implemented stricter screening processes, leading to a 67% decrease in exports to $278 million. This has not only impacted durian exports but also contributed to a 13.5% reduction in Vietnam's overall fruit and vegetable exports, which now stand at $2.3 billion.

A farmer loads freshly harvested durians into a cart at a durian orchard in Dak Lak province, Vietnam

Challenges at the Border

Dang Phuc Nguyen of the Vietnam Fruit and Vegetable Association highlights the increased checks for heavy metal residues and fraudulent growing area codes by China, making customs clearance more challenging. This has led businesses to limit exports to small batches or halt them entirely to focus on compliance.

Seeking Solutions

Proposals to mitigate these issues include establishing mini testing labs at growing areas and ensuring fruits are tested and certified before export. Efforts are also being made to control illegal fertilizers and remediate contaminated soil to meet China's standards.

Recent discussions between Vietnamese and Chinese officials have led to extended working hours at customs and the approval of additional growing areas and packing facilities in Vietnam, offering a glimmer of hope for exporters.