26
JUL 2017
FOOD FOCUSTHAILAND
SURF THE
AEC
past period due to its strong marketing promotion and measure to penetrate new market
continuously,while itsgovernmenthasnegotiated for reducing tradebarriersaswellas increase
production control standard, in particular for fruits export.
Fruits Import in theFirst Quarter of 2017
TheCustomsDepartment,Vietnam reported that in thefirstquarterof thisyear,Vietnam imported
fruits and vegetables worth USD 225million, or rose by 43.7 percent compared to the same
period last year.TheMinistryofAgricultureandRuralDevelopment,Vietnam revealed that fruits
import has increasedsignificantly in thefirst quarterof thisyeardue toweather condition, cause
lower production.
Thailand is the largest fruits supply countries to Vietnam. In the first quarter of this year,
Vietnam import fruits fromThailandworth at USD 111.5million, an increase by 86.45 percent
compared to thesameperiod last year. The import figure isaccountedat 49.3percent from the
total Vietnam’s fruit import value. The second largest supplier isChinawith import valueworth
USD 45.97million, or rose by 17.57 percent year on year. Other emergingmarkets included
India, Brazil, andSouthKorea.
Major kind of fruits import to Vietnam during the first three months of 2017, are included
apple, orange, pear, kiwi, cherry (fromNewZealandandAustralia), Khiaosawoeymango, and
sweet tamarind (fromThailand), Fuji apple (fromSouthKorea), andKiwi (fromFrance) andetc.
VietnameseConsumer Behavior for FruitsConsumption
In hypermarket, such as Big C and Vinmart, the price apple and pear from the United States
andFrancearequotedatVND40,000-90,000perkilogram.BigCsells importapple fromFrance
at VND 39,900 per kilo, whileGala apple from theUnitedStates is traded at VND 59,900 per
kilo,pear fromSouthKorea retailsatVND70,000perkilo,andseedlessgrape fromSouthAfrica
ispricingatVND135,000perkilo.BigChasastrategy todirectly import fruits from fruitssuppliers
rather thanorder fruits from traders.Thisstrategyhelps reducecost.Retailerwill alsostimulate
consumers spendingby giving special discount under the sale promotion.
Vinmart Supermarket sells chemical-free Juliet apple at price VND 89,000 per kilo, Gala
apple from France at VND 66,000 per kilo, Gala apple from theUnited States at VND 89,000
per kilo, and seedless grape fromSouthAfricaat VND115,000 per kilo.
Currently, priceof import fruits is as cheapas local fruit. Unlike in thepast, priceof import
fruits were between VND 80,000-200,000 per kilo. With too low price import fruits, some
consumers are concerned about quality of fruits, and have a question whether retailers have
loyalty tellingabout importorigin.Vietnamesedon’tbelievecheapproductwillhavegoodquality.
Meanwhile, price of import fruits sell at
freshmarket andalong thestreet arestill high
due to the propaganda that high pricemeans
goodquality.General retail shopsneed tosell
import fruits at high price due to less quantity
of import,while retailershave toshoulder cost
of deteriorateof fruits.
The Ministry of Agriculture and Rural
Development reported that in March 2017,
import fruitswill be increased toworthUSD12
million. In thefirst quarterof theyear,Vietnam
spent USD 171 million or about VND 4,000
trillion for importing fruits from the United
States,Australia,andNewZealand,whichwas
upby52percentcompared to thesameperiod
last year.
However, theministryhas forecasted that
during 2017-2018, fruits import will be climb
up largely following the implementationof the
free-trade agreements betweenVietnam and
trading partners, whichwill lower import tariff
to zeropercent.
For some kind of fruits that grow in
provinces in theSouthern part of the country,
price will be highly fluctuated due to climate
change problem. For instance, price of
watermelon was down by VND 4,000-4,300
per kilo, priceof cainito lower decreasedVND
10,000 per kilo, banana price in Dong Nai
provincewasupbyVND1,500-4,000per kilo
after price fell largely in the previousmonths.
Priceofbananasellsat the farmgate isquoted
at VND 3,000-3,500 per kilo, but export price
is at VND 6,500 per kilo.
However,Vietnameseconsumersare favor
more on import fruits, in particular Thai fruits
rather thandomestic fruitsdue to three factors
as follows:
1. Price of import fruits are as close as
local fruits or sometimes import fruits is
cheaper.
2. Lowconfidenceaboutchemical residue
on local fruits
3. The popularity of Thai fruits among
Vietnamese consumers
Those factorsdefinitety indicate togreater
chance for Thai fruits export toVietnam.
Reference
Report: VietnamFruitsMarket, Royal Thai Embassy,
Hanoi, Vietnam. April issue2017.
VietnamNews. 20April 2017
