Vietnam sees dramatic increase in fruit, vegetable exports to South Korea, Thailand

Vietnam saw high export growth in fruits and vegetables to all major markets in Q1/2024, but the intake by South Korea and Thailand was sudden and dramatic, a report says.

Fruit and vegetable exports in Q1/2024 reached approximately $1.3 billion, up 30.8% year-on-year. It was the first time that fruit and vegetable export turnover topped $1 billion in Q1, according to the report by the Vietnam Fruit and Vegetable Association (Vinafruit).

There was significant growth to the nation’s primary markets of China, South Korea, the U.S., Thailand and Japan, with the Chinese market leading in export value at $759.4 million, a 32.4% year-on-year increase.

China currently accounts for 59.1% of Vietnam’s agricultural export value.

While exports to the U.S. increased 33.9% year-on-year to $67.7 million, dramatic surges were seen in imports by South Korea and Thailand with year-on-year increases of 59.3% and 112% to $74.6 million and $47.6 million, respectively.

Vinafruit general secretary Dang Phuc Nguyen attributed the surge to off-season contributions by durian and dragon fruit. Geopolitical tensions and Red Sea-related disruptions of South American and Middle Eastern fruit exports to South Korea also played a part.

High freight charges and lengthy shipment delays have resulted in a shortage of fruit and vegetable supplies in South Korea, leading to an increase in imports from Vietnam, Nguyen said.

Looking ahead at the rest of the year, Nguyen said that although the global and domestic economic situation remained difficult, the fruit and vegetable industry had plenty of room to reach an export turnover of $7 billion.

The primary driver of this year’s growth would be continued strong demand in China, the world's largest fruit and vegetable export market.

Vietnam is currently negotiating to have more products official exported to China, Nguyen said. At the same time it continues to push exports to other major markets like the U.S., Europe, Australia and South Korea, he added.