Vietnam's 'banana king' highlights importance of export relations

You're known as the "banana king". Could you please describe how you ended up with that title?

Following the negotiation and signing of the Trans-Pacific Partnership Agreement (TPP) in 2016, I chose a tree that can be integrated, is in high demand around the world, and has a competitive advantage. Banana trees meet those criteria.

Huy Long An's Fohla bananas have been shipped to Japan, Korea, Malaysia, and China so far. Fohla is the abbreviation for the fruits of Huy Long An.

Our company both grows and collaborates with farmers in Tay Ninh, Dong Nai, and Long An, with around 500 hectares of bananas and 200 hectares of other crops such as pomelo, durian, and mangosteen. Banana production exceeds 20,000 tons per year, with exports accounting for 95% of total output.

Why did you go down the export path?

I planted with the intention of exporting to the Japanese market. Although this is a difficult market, I chose it since there are few competitors and it is stable. The domestic market is simpler, but there are many competitors.

Our Japanese partner initially proposed harsh conditions, but they were nevertheless grounded in the ideals of construction and cooperation. There were several situations that I didn't foresee and had to discuss with my Japanese partners.

How did you approach the first Japanese partners?

At first, the company did not actively look for partners. The field infrastructure system in Huy Long An is quite well constructed and includes items like safety nets, pulley harvesting, packing houses, and storage warehouses. Many people uploaded photos of the garden to social media. Numerous overseas visitors, notably Japanese visitors, have visited the garden, in addition to domestic press stories.

Has the company's bananas ever encountered a problem? And how did you solve it?

During one harvest some bananas had bruising and flaws, so I had to take off right away for Japan. We could not control the bruising, and our partner was unsure. If the rate of bruising is within the agreed level, it's alright, but if it's too much, we have to apologize.

I traveled to Japan in order to deal with the issues with Fohla bananas and determine how to fix them. This put our partners at ease since they recognized our goodwill and accountability for the items.

The Japanese are particularly interested in learning where the things they wish to purchase come from, and they value business partners who conduct themselves honorably and safeguard their clients.

Which competitors do Vietnamese bananas face?

Vietnam's banana exports face strong competition from the Philippines and Cambodia. Many Chinese enterprises rent land and grow bananas in Cambodia. These companies invest and operate on a massive scale. In Vietnam, local firms do the majority of the banana growing. In terms of price in the Chinese market, Cambodian bananas are more expensive than Vietnamese bananas.

For more than 60 years, the Philippines has grown bananas for export, with huge firms from Europe and South America investing so that the process is well cared for, meticulously researched from land to soil, and employees are trained. The infrastructure is quite modern, and the fruits are exported to many nations, ranking second in the world for banana exports.

According to www.worldstopexports.com, global banana export turnover reached $12.5 billion in 2022, with Ecuador leading the way with $3.5 billion, accounting for 28.2% of the total. The Philippines came in second with $1.1 billion, contributing 8.8% of the total. Vietnam ranked ninth with $294 million, accounting for 2.4%, while Cambodia was rated 14th with $182 million, contributing 1.5% of the global total.

What about other agricultural products does Huy Long An grow?

Currently, 200 hectares of our pomelos, durians, and mangosteens are farmed for the domestic market. For these products, we have not actively sought export markets.

What effect has China's reopening had on Huy Long An's banana exports to this market?

Huy Long An's customers are consistent, and exports to the Chinese market have not significantly increased. Export revenue won't increase or decrease abruptly in China.

Regarding the markets in Japan and South Korea, Vietnam has free trade agreements (FTA), making them more open, and the opportunities are still excellent.

How do you assess the role of the North-South Expressway, which is expected to be completed in 2025? Will it generate favorable conditions for Chinese exports?

When completed, the North-South Expressway will offer ideal conditions for agricultural development. Transport times and damage will be reduced because agricultural products are notoriously difficult to store. Shorter shipping times keep the fruit fresher, making it simpler to win over customers. The regular operation of the border gate, on the other hand, is a critical aspect in exporting to China.

How can Vietnamese fruits improve their standing in the global market?

In the production and export of agricultural products, each stage represents a crucial link. The use of technology in process production is significant for growers. When quality is maintained, new goods create strong brands. The product will stand out in the global market if there is a brand. The issue is how to connect and collaborate amongst farmers, businessmen, scientists, and the government because fruit production in Vietnam is still quite low. Vietnam top the list for agricultural exports when we work together.