News

Reduce dependence on the Chinese market - Part 1: Fruits, vegetables ... to the EU, India

Update: 6/16/2014

Businesses and traders are actively looking for other markets, rather than just focusing on the Chinese market as long.
 
Many business owners bowl and actively expand the market to ASEAN countries and India. In pictures: The people of Eastern society, Tan Binh District, Vinh Long Province yam harvest - Photo: Thuy Hang
 
Thai jackfruit harvest in Cam Son commune, Cai Lay District, Tien Giang Province - Photo: Th.Tu
 
Instead of just focusing on China market, recently, many associations, businesses, traders ... in many areas is accelerating up the initiative a very systematic plan to expand into the other markets.
 
Not only exports, imports many raw materials group also calculated to reduce dependence from this market.
 
Breast milk Vinh Kim, Cho Gao dragon fruit, sweet potatoes Binh Tan ... in the Mekong Delta before output is mainly based on the Chinese market, but the last several business areas to actively Cambodia, India ... even the EU to offer.
 
At Vinh Kim fruit market - the largest wholesale markets in the Mekong Delta (Vinh Kim commune, Chau Thanh District, Tien Giang) and the durian material areas (Cai Lay), dragon (Cho Gao) ... in the last days May started last June, the price of fruits (type I) falling as: Thai jackfruit fell from 17,000 VND / kg to VND 7,000 / kg, xapoche from 15,000-17,000 VND / kg reduced copper 7000-9000 / kg, durian Monthong from 37000-40000 / kg decreased to 18,000-20,000 VND / kg, copper dragon from 17000-20000 / kg only 8,000-10,000 VND / kg ...
 
Depending on market
 
Mr. Huynh Quang Dau (General Director of JSC An Giang Vegetables Food - Antesco, vice president of Vietnam Fruit Association): Do not worry about the market, the lack of funds
 
Demand for agricultural products in the high end market is very large but difficult many domestic enterprises do not have enough capital to invest in the materials and manufacturing plants. The difficulty for exporters Vietnam's agricultural regions of our materials on a small scale, fragmented so uneven quality, managing chemical residues during this difficult is the technical barriers that the difficult markets like the EU and the U.S. do very tight. Therefore, the authorities need to support businesses in the region to what kind of quality material stability.
 
For Antesco, in the first five months of this year, export sales of over $ 5 million Antesco, an increase of 19% over the same period last year. Main products of the company are all kinds of frozen vegetable processing and canning exports to difficult markets such as the EU, USA, Japan ... The company is promoting market expansion into the Middle East because this is a very potential market.
 
We can achieve this goal by newly Antesco State Bank agreed to provide loan capital to build the plant and the development of materials with low interest rates. Specifically, 80% state loan funds not invested factories in 11 year mortgage with an interest rate of 10.5% / year, while extending the loan with interest materials 7% / year. This is very favorable conditions to implement the model Antesco link fields on large samples of vegetables, including outputs for farmers. Tran Manh record
 
One of the main reasons that fruit prices as well as agricultural products deep discounts, according to the barns and all the exporters of agricultural products, the Chinese market is so slow, "eat" after the Middle China illegally placed 981 rigs in waters of Vietnam Hoang Sa.
 
Particularly for items yam harvest is in service so the price is falling. Price of sweet potatoes on Binh Tan district (Vinh Long) currently only 4000-4800 VND / kg, reduced 1,000-2,000 VND / kg more than the previous month. Mr. Le Van Xinh (Tan Thanh commune farmers) said that recent incidents potato yield is very low, while the high quality and not the quantity of potato traders are excluded from purchase accounting for nearly half. As his family 1.000m2 Hot potato crop, the harvest is 50-60 quintals to 20 quintals potatoes of poor quality, traders are "washed". Prices only drift near potato yam is often half the price.
 
Mr. Ngo Van Tua, head of the Agricultural Cooperative Member Services East, for that yam prices fell due in part dependent on the Chinese market. Prices are located at low levels over recent months, many farmers do not harvest that anchored waiting for the price.
 
A number of other agricultural products has been preliminarily processed, processing also depends greatly on the market such as cashew nuts, rubber, tapioca, rice, while the share of exports to the Chinese market accounted for 20-90% of total exports. Notably, in the past few years, while some items have moved in a positive direction depends descending China is dependent for rice growing in this market. According to the Vietnam Food Association (VFA), in two years the Chinese market is increasingly becoming an important import rice from Vietnam. Currently China is the largest importer of rice in Vietnam when accounting for over 60% of the total export volume of the country.
 
Not only dependent on commodity exports, many important agricultural materials for agricultural production in Vietnam is also dependent on supplies from China, such as fruits and vegetables, fertilizers, pesticides ... when accounting to 30-50% of total imports.
 
Find the replacement market
 
For businesses not stalled, many business owners barns and agricultural products business in South West are actively expanding new markets such as Cambodia, Thailand, Indonesia, Malaysia, India ... to goods. Cambodia is the first choice for all barns by market acceptance for low-end goods, transport costs are also not far away. Anh Nguyen Thanh Hiep, Hiep Phat host fruit bowl (Tam Binh commune, Cai Lay District, Tien Giang Province), said over the past month he has moved up the initiative to export to Cambodia to maintain the business as well as keep relationship with the garden. "This market consumption quantity but not much but pretty close to the locality should not carry high costs. So its just Monthong buy durian farmers from 18,000-20,000 VND / kg, which sells 22000-24000 aside contract is profitable and could hold clues to the farmers, not to the business interruption "- he said Agreement.
 
Similarly, Mr. Tran Huu Danh - Director of Long Vietnam Co., Ltd. (Dang Hung Phuoc commune, Cho Gao district, Tien Giang) - 90% said previously the company's dragon is exported to the Chinese market. But now due to tensions with China should the dragon export to this market is disrupted, customers do not have to "eat". In the meantime resumed this market, now has his list and actively seek to expand markets in Thailand, Malaysia, Indonesia and India.
 
Mr. List said that although Asean market demand of agricultural products but not as much as the Chinese dragon's generally Vietnam is the people of this country preferred. Recently, his list now has access to the Indian market and exported goods to the market this dragon.
 
"India is a big market, easygoing. Estimated 3-5 years this market will be expanded, while the dependence on the Chinese market will be less and this is indicative target of our business in the future "- he List of hope.
 
Guide to the difficult markets
 
According to Nguyen Quoc Vong GS - agricultural experts, the demand for agricultural products and advanced cleaning of the world is enormous and growing over time. While the situation in Vietnam is still backward farming and not according to the international standards, it is difficult to reach these difficult markets. To penetrate the high-end market, Vietnam must change habits agricultural production towards high technology and international standards.
 
Practice has proved now reached international standards, the export of agricultural products to the demanding markets is very convenient, not even enough goods to sell. Mr. Dong Dang Huan, representing Cat Thinh Co., Ltd. (Vietnam), said the unit is not enough goods to export herbs to the European market.
 
According to the Department of Plant Protection, after a month the government New Zealand Open, the first dragon fruit in Vietnam has been a domestic export unit testing in this market. Thus, New Zealand's last hard market where fresh dragon fruit in Vietnam after penetrating the U.S., Japan, South Korea, Chile, Canada and the EU side. Also dragon, some other fruits of Vietnam as mango, litchi, rambutan, star apple ... also has export potential in these difficult markets when the quarantine procedures be through. This is the market that domestic enterprises need to take note of in the future. "The mission of the state agencies that market opening is done, now is the time for export enterprises to actively seek partners and promotion of products put on the market" - Dr. Nguyen Huu Dat, Director of Quarantine Center after import 2 (MARD), said.
 
Thanh Tu - Thuy Hang - Tran Manh / Tuoi Tre news
Back to Top