Vietnam requires a strategic approach to foster growth in the coconut industry.

Rewritten Article:

Exporting Our Sunny Coconuts: Vietnam's Coconut Industry Game Plan

HᾱNộ̣I - Viẹt Nam is crafting a program to boost its coconut industry, leveraging skyrocketing global demand to sustainably grow exports.

With over 200,000 hectares of coconut groves and an annual output of approximately two million metric tons, Viẹt Nam lands in fifth place worldwide for coconut production. Last year, coconut exports surged to $1,089 billion, jumping from a humble start of $180 million in 2010.

In the early months of 2023, exports of fresh coconuts increased by 18% to $33.3 million, and processed coconut goods skyrocketed 86% to $43.8 million.

American and Chinese markets show potential for Viẹt Nam's coconuts, while our coconuts are making a splash in the everlasting US market, known for its love of coconuts and top-notch quality. Following a deal signed in August, China plans to import $250 million worth of coconuts from Viẹt Nam in 2023.

The growing demand offers significant opportunities for Viẹt Nam to champion the coconut industry and solidify it as a cornerstone of its agricultural economy by 2025. Nevertheless, the coconut industry faces numerous barriers. In Bến Tre and Tiền Giang, where over 100,000 hectares of plantations reside, persistent drought, saltwater intrusion, and pest outbreaks have severely impacted yield, resulting in supply shortages and soaring prices.

Coconut prices are now around VNĐ170,000 - 180,000 ($6.7-7) per dozen, nearly tripling the same period last year.

Cao Bá Dăng Khoa, General Secretary of the Viẹt Nam Coconut Association, attributes the increase to declining supply, escalating demand in northern markets during the hot season, and for exports. Although farmers benefit from higher prices, it triggers instability for exporters and processors.

To capitalize on climbing coconut prices and global demand, Viẹt Nam calls for a strategy for its coconut industry. Khoa emphasizes that the focus must be on creating powerful brands for fresh coconuts, coconut milk, oil, cosmetics, and handicrafts.

Deep processing and product diversification will help boost added value, according to experts. They also stress the need to develop plantation areas that meet stringent quality requirements of the US and the EU. Investments in post-harvest processing, technology, logistics infrastructure, and supply chains for the coconut industry are critical.

Deputy Minister of Agriculture Phùng Đức Tiến advises Viẹt Nam to proactively ready for stricter international standards, especially from markets such as the US and EU, and utilize trade agreements like RCEP to expand exports.

Viẹt Nam Fruit and Vegetable Association anticipates coconut exports reaching $1.2 billion this year, with fresh coconuts contributing $500 million. - BIZHUB/VNS

Fresh coconuts packed for export. - VNA/VNS Photo Công Trí

Enrichment Insights:

Viẹt Nam is establishing partnerships such as the joint venture between TTC AgriS and Indonesia's Sungai Budi to enhance coconut production and develop a comprehensive value chain.
The strategy also focuses on organic coconut farming, integrating traceability and circular economy principles to boost the value of agricultural products.
Companies like TTC AgriS and Betrimex are diversifying their product portfolios to meet global trends, including high-value coconut-based products like canned coconut water and coconut milk.
Strategic targeting of key markets like the US and China is a crucial component of Viẹt Nam's expansion plans.
The Vietnam Coconut Association provides preferential credit packages and utilities to farmers and businesses, creating a stable source of domestic coconut materials and promoting high-value products.
Regional integration with Indonesia is part of a broader strategy to deepen Vietnam-Indonesia trade relations and contribute to bilateral trade goals of $18 billion by 2028.
Efforts are being made to stabilize coconut growing areas and ensure a consistent supply of raw materials for businesses. Financial support from banks is being tapped to maintain raw material areas, allowing businesses to concentrate on high-value production.

The coconut industry in Vietnam, with its annual output of two million metric tons and vast coconut groves, aims to sustainably grow exports, particularly considering the soaring global demand.
The US and Chinese markets exhibit promise for Vietnam's coconuts, with an increasing demand seen in the everlasting US market and a planned $250 million worth of imports from Vietnam by China in 2023.
Progressive opportunities exist for Vietnam to strengthen its coconut industry, with a target to make it a cornerstone of the agricultural economy by 2025.
Persistent challenges like drought, saltwater intrusion, pest outbreaks, and declining supply have affected yield and created supply shortages in coconut-rich regions like Bến Tre and Tiền Giang.
Coconut prices have nearly tripled, reaching VNĐ170,000 - 180,000 ($6.7-7) per dozen, impacting exporters and processors despite benefiting farmers.
To capitalize upon rising coconut prices and global demand, Vietnam is planning a strategy emphasizing the creation of powerful brands for fresh coconuts, coconut milk, oil, cosmetics, and handicrafts.
To enrich the value of agricultural products, the strategy includes deep processing and product diversification, investments in technology, logistics infrastructure, and supply chains, and the development of plantation areas meeting stringent quality requirements.
Deputy Minister of Agriculture Phùng Đức Tiến encourages Vietnam to prepare for stricter international standards, especially from markets like the US and EU, and utilize trade agreements like RCEP to expand exports.