Fraud in coconut growing area codes must be strictly addressed: Vina T&T Group exec

The buying and selling of growing area codes in the coconut sector are severely damaging Vietnam's reputation and competitiveness, says Nguyen Phong Phu, deputy technical director of Vina T&T Group.

Phu made these remarks during the seminar "Enhancing the coconut value chain in the trend of green economy," held in Ho Chi Minh City on Friday.

He emphasized that fraud related to growing area codes is a critical issue that must be resolved to ensure the sustainable development of the coconut export sector.

Currently, many organizations, after receiving growing area codes, violate regulations by reselling or leasing them and falsify information about product origins. In some cases, growing areas fail to maintain production standards as registered, resulting in violations of plant quarantine and food safety regulations.

Such practices not only compromise export quality but also prompt importing countries, especially China, to tighten controls or suspend imports from Vietnam, causing significant losses for farmers and legitimate businesses.

According to Phu, this fraudulent behavior threatens the country’s reputation, erodes the trust of international partners, and hinders market expansion. He stressed the need for a digital system to manage growing area codes strictly from production to export.

Additionally, authorities must crack down on fraudulent activities and work to raise awareness among farmers and businesses about their responsibility to safeguard national brands.

Phu noted that synchronized monitoring and management measures are essential for the coconut export sector to tap into large markets like China, maintain a competitive edge, and achieve sustainable growth.

He highlighted Vietnam’s strengths in high-output growing areas, its strategic location in a large market region, and its infrastructure advantages such as seaports and warehouses.

China remains the largest market for Vietnamese coconuts, importing mostly dried coconuts and coconut milk rather than fresh coconuts. A Chinese enterprise can purchase 5-10 cubic meters of coconut milk, equivalent to the juice of 100,000 fresh coconuts, demonstrating the immense demand, according to Phu.

Addressing challenges in exporting coconuts, Phu pointed out issues such as quality control, preservation, and sprouting during transportation, particularly for dried coconuts exported to Europe and the U.S. These markets impose stringent preservation and quality standards, while China requires compliance with growing area codes.

The Vietnam Coconut Association notes that Ben Tre is the "coconut capital" of Vietnam, accounting for about 40% of the country’s coconut-growing area and output. In the first nine months of this year, the province exported 22 million coconuts to markets such as the U.S., Japan, the EU, and South Korea at favorable prices.

Vietnam has tremendous potential to penetrate the billion-population Chinese market, but success requires businesses to seize opportunities and prioritize sustainable development.

According to the People's Committee of Ben Tre, trade promotion efforts and market expansion have driven export turnover to over $1.2 billion in the first nine months of 2024, up 14.02% year-on-year, achieving more than 70% of the year's plan.