Vegetable and Fruit Export: Focus Given to Developing Major Items of Great Advantage

Vegetable and Fruit Export: Focus Given to Developing Major Items of Great Advantage

In 2004-2005, Vietnam's vegetable and fruit export value will reach between US$300-350 million. Although this figure remains small compared with the country's potential, it remains a great challenge for the local vegetable and fruit processing industry.

Potential but demanding markets, such as the US, the EU and China, have increased their non-tariff barriers in the area of quality standards. Vietnam's fruit and vegetables face stiff competition with the products of Thailand and India. China, which imports 80 per cent of the fruit and vegetable produce of Vietnam, has increased its import regulations with higher requirements for product quality. Vietnam's fruit and vegetables have also been imposed with a tax rate higher than products of Thailand and India.

Meanwhile, processing plants in Vietnam lack materials for production. As a result, many plants reach only 20 and 25 per cent of their design capacity, while some of them, namely the Haiphong tomato processing plant and the Bac Giang vegetable and fruit processing plant, run at less than 10 per cent of their design capacity. The formation of the vegetable and fruit consumption network remains fragmented without any quality, safety and hygiene examination systems in place. Experts say that a harmonious plan must be developed from material production through to processing and consumption. Under a master plan to 2010, the land fund for vegetable cultivation is put at 716,000 hectares while areas under fruit trees are to reach 1,093 hectares. The development of the master plan should combine with the restructuring of vegetables and fruit trees being selected for production, focusing on developing major items of great export advantage: bamboo shoots, mushroom, vegetables, soya beans, tomato, pepper, pineapple, taro and ornamental trees.

In the short term, the State needs to develop a master plan to increase material supply areas for pineapple and tomato to meet the material demands of processing plants. At the same time, further master plans should be developed to build markets and warehouses for vegetables and fruit. Also, more money must be invested in developing and upgrading irrigation systems and providing technical support for vegetable and fruit cultivation areas.