Coconut imports skyrocket as exports create domestic shortage

Dang Phuc Nguyen, general secretary of the Vietnam Fruits & Vegetables Association (Vinafruit), said the spike in imports was caused by a surge in export of fresh coconut, which reduced domestic availability.

Coconuts seen in Ho Chi Minh City. Photo by Unsplash/Dang Cong

"Markets such as China, the U.S. and the Middle East are all ramping up purchases from Vietnam, which is squeezing supply for domestic processing."

The U.S. opened its market to fresh coconuts from Vietnam in 2023 followed by China in August 2024.

Coconut exports in the first seven months reached $306.2 million, with a 57% surge in processed coconut and 15% rise in fresh coconut.

To meet their requirements, many processing companies have been importing coconuts from Indonesia and Papua New Guinea.

But since Vietnam has yet to sign an official agreement on coconut trade with Papua New Guinea, imports from that country remain limited.

The supply shortage pushed coconut prices at the farm gate to a record VND19,000 per fruit in the first half, according to the Vietnam Coconut Association.

This means retail prices of premium fruits have been around VND25,000, six times up from four years ago, an unusual spurt in the agricultural sector.

The high prices have encouraged an expansion in cultivation.

The country now has more than 200,000 hectares under coconut, and they yield around two million tons of the fruit annually.