Fruit, vegetable exports plummet 39% as China raises quality bar

In contrast, exports to the U.S. and Japan rose by 66% to $65 million and 23% to $33 million, according to customs data.

Total exports during the period were worth $687 million, down 15.7%.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, said while exports to some major markets grew, the sharp decline in shipments to China dragged down the entire sector.

China tightened import regulations in January to require testing for auramine O, or basic yellow 2, a potentially carcinogenic chemical.

It has also been inspecting all shipments of Vietnamese durian, a key export item, delaying customs clearance and increasing the risk of spoilage.

Many businesses halted exports to complete procedures but have yet to be able to resume them.

Nguyen Dinh Tung, CEO of exporter Vina T&T, said the stringent testing procedures have derailed the company’s plans to restart shipments to China by the end of February. It is unclear when it could do so, he added.

To restore exports, the Ministry of Agriculture and Environment is tightening quality control to ensure compliance with import requirements in several markets.

Relevant authorities are strictly monitoring, issuing warnings and cracking down on violations to protect the reputation of Vietnamese agricultural products.

They are also negotiating for the removal of these technical barriers and exploring opportunities to expand into new markets.