This marked a 10-fold jump in imports from the U.S. from a decade ago, with cherries, apples, grapes, and oranges being among the top fruits bought, according to Vietnam Customs.
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Apples for sale at a farmer's market in Washington State, United States. Photo by Unsplash/Shelley Pauls |
Vietnam’s vegetable and fruit exports to the U.S. were worth $546 million last year, a minuscule 1.49% share in a market is dominated by suppliers such as Mexico, Canada and South American countries.
Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, said the U.S. is a very large market but also one marked by stringent technical standards and also long geographical distance for Vietnam.
Vietnam’s position as the 13 largest fruit and vegetable supplier to the U.S. is owed to the great efforts made by businesses in recent years, he added.
There is room for growth as the list of fresh fruits permitted for export to the U.S. continues to expand, and now includes pomelo, mango, dragon fruit, longan, lychee, star apple, rambutan and, most recently, coconut.
Consumer trends in the U.S. are shifting toward novel fruits, health-oriented products and more deeply processed items such as frozen fruit, dried fruits and juices, with Vietnamese products like coconut, durian and pomelo becoming increasingly popular.
But exports do face many challenges. Starting this month the U.S. began tightening regulations on traceability and food safety, particularly with respect to pesticide residues.
Vietnamese oversight of planting area codes and packing facilities remains uneven, which threatens to bring warnings or even temporary import suspensions by the U.S.
The high logistics costs due to the distance make it difficult for Vietnamese fruits and vegetables to compete on price with suppliers close to the U.S. such as in Mexico, Peru or Thailand.
U.S. policies to protect domestic agriculture and trade defense measures have become random with the new Trump Administration.
Meanwhile, green production, carbon emission and social responsibility requirements in supply chains are gradually becoming mandatory, adding further pressure on exporters.