Well Prepared for Lychee Consumption

According to information from the Ministry of Agriculture and Rural Development and from two provinces of Bac Giang and Hai Duong, the lychee crop of 2015 is expected to produce over 200,000 tonnes of fresh fruit. This year’s lychee harvest is scheduled as follows: early harvest from May 15 to June 5, 2015 (mainly in districts of Tan Yen, Luc Nam and Luc Ngan of Bac Giang province), main harvest from June 1 to July 20, 2015.

 

Of 200,000 tonnes total production estimated above, approximately 60 percent is forecast to be for domestic consumption, the rest would be exported. For domestic consumption, fresh lychees’ market spreads widely throughout the country, concentrating more in northern localities and big cities. For export markets, lychee will mainly be exported to markets such as China, ASEAN and European countries. Besides, recently there have been positive signals from markets like the US, Australia, Japan, South Korea. China remains the important traditional export market, accounting for around 90 percent of total export volume. This year, lychee’s price is forecast to be stable and comparable to 2014 level.

 

After 12 years of formal proposal, recently, the Australian Ministry of Agriculture has sent an official letter to the Plant Protection Department notifying Vietnamese enterprises could apply for licenses to import lychee into Australia.

 

In the 2014 season, total consumption of lychee in domestic market reached 138,000 tonnes, of which 60,000 tonnes came from southern markets, nearly 43.5 percent of domestic consumption. Thanks to opening up channels for domestic consumption, especially ones connecting to the South, lychee consumption in 2014 went smoothly and successfully. Prices didn’t fall, creating good effect on general consumption in the country and consumption of Vietnam’s fruits in particular, making real contribution to the campaign “Vietnamese people using Vietnamese goods”.

 

For 2015 season, on the basis of positive results from lychee consumption in 2014, the Ministry of Industry and Trade continues to coordinate with concerned ministries, agencies and localities to organise activities to promote consumption in both domestic and foreign markets, focusing on some key activities as continuing to expand export markets for agricultural products. If the TPP and FTA with the Customs Union, the FTA with the EU go into effect, it will open up great opportunities for many export commodities of Vietnam. In particular, many agricultural – aquatic products, processed goods of Vietnam will be immediately given tax rate of 0 percent, or will be gradually lowered to zero.

 

In addition, enterprises should make the most of trade promotion programs to create stimulating effects, creating greater role of businesses in the participation of trade promotion activities. Enterprises should proactively monitor and grasp the situation of trade barriers (protectionism, anti-dumping, anti-subsidy) at import markets, from that basis, proposing effective strategies to fight against inappropriate barriers for Vietnamese commodities.

 

For domestic market, industries and agencies need to continue organising activities to connect supply - demand to create a link between agricultural production and fisheries areas with distribution system. It’s also important to connect the creation of stable commodity sources through the market stabilization program and the campaign “Vietnamese people using Vietnamese goods” with the project “Developing domestic market linked to the campaign Vietnamese people using Vietnamese goods”.