Impressive Figures: Vietnam’s Agricultural Exports Soar in the First 7 Months of 2024

Coffee, rice, fruits, and cashews have made significant contributions to Vietnam’s $15.76 billion agricultural export turnover in the first half of the year. Coffee and pepper, in particular, have seen substantial growth in value over the first seven months, despite a decline in volume.

Positive Developments in Vietnam’s Agricultural Market

Since the beginning of the year, Vietnam’s agricultural market has experienced many positive changes. According to a report from the Ministry of Agriculture, the export turnover of key agricultural products reached $15.76 billion in the first half of the year, marking a 24.4% increase compared to the same period last year. Notably, seven products and product groups exceeded the $1 billion mark, including coffee, rubber, rice, fruits, and cashews.

Coffee Leads with Impressive Growth

Coffee has been the standout product, showing remarkable growth. In the first six months, Vietnam exported 902,000 tons of coffee, generating $3.22 billion in revenue. Although the export volume decreased by 10.5%, the value increased by 34.6% due to an 80% surge in coffee prices compared to the same period last year, reaching 125,000 VND per kilogram as of July 26th. With high prices and strong global demand, this year’s coffee exports are expected to break last year’s record.

Rice Continues to Assert Its Position

Rice remains a key agricultural product, with Vietnam being the third-largest supplier globally. In the first half of the year, rice exports reached 4.68 million tons, nearly $3 billion in value, reflecting a 10.4% increase in volume and a 32% increase in value compared to the same period. The current price of rice hovers around $559-570 per ton. Major importing markets like the Philippines, Indonesia, China, and Africa continue to increase their purchases, with growth rates in the double digits.

Fruits and Vegetables See Positive Momentum

The fruit and vegetable industry has recorded significant achievements over the past two years. In the first six months of 2024, the export value of fruits and vegetables reached $3.33 billion, a 24.3% increase over the same period last year. Durian made the largest contribution, accounting for 30% of the sector’s total export value. China remains the largest market, generating $2.2 billion, up 22.6%, followed by South Korea, the United States, and Japan. The export prices of fruits and vegetables have also risen compared to last year, especially for durian, dragon fruit, mango, and bananas.

Rubber Exports Continue to Grow

In the first half of the year, rubber exports reached approximately 722,000 tons, generating $1.09 billion in revenue. Despite a 5.8% decrease in volume, the value increased by 4.5% compared to the same period last year.

Cashew Exports Near $2 Billion

Cashew exports reached nearly $2 billion, with 350,000 tons shipped, reflecting a 24.9% increase in volume and a 17.4% increase in value. The price of raw cashews reached a record high of 43,000-45,000 VND per kilogram, doubling compared to last year.

Strong Demand from Major Markets

According to industry associations, this strong growth is largely driven by increased purchases from major markets like China, the United States, the Philippines, Japan, and South Korea. The impact of the El Nino phenomenon has also reduced the supply of agricultural products, pushing prices of many items to record levels.

Outlook for the Second Half of the Year

In the second half of the year, Vietnam’s agricultural exports are expected to remain favorable due to seasonal factors and abundant supply.

Mr. Nguyen Nam Hai, Chairman of the Vietnam Coffee and Cocoa Association (VICOFA), noted that Vietnam is the world’s largest exporter of Robusta coffee, but supply is currently dwindling. Since June, export volumes have dropped by 40% compared to the multi-year average, causing coffee prices to continue rising, making it unlikely to fall below 100,000 VND per kilogram. In 2023, coffee exports reached a record of over $4.2 billion. VICOFA forecasts that coffee exports could exceed $5 billion this year, driven by high prices.

The Vietnam Food Association predicts that global demand for rice remains strong. Traditional markets like China, the Philippines, and Indonesia have all increased their import quotas. Indonesia plans to import 5.18 million tons of rice, recently opening a tender for the purchase of 320,000 tons of 5% broken rice, creating opportunities for Vietnamese rice. The Philippines has also increased its import volume from 3.8 million tons to 4.5 million tons.

The Fruit and Vegetable Sector’s Bright Future

As a rising star, the fruit and vegetable sector is also expected to reach $7 billion this year. Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, believes that Vietnamese products are increasingly recognized for their quality and are favored in many markets. Durian, the flagship product of the fruit and vegetable group, is gaining a strong foothold due to its affordable price, freshness, and quick transportation. From July to October, durian production will peak as the Central Highlands enters the harvest season.

Vietnam and China have completed technical negotiations and are set to sign a protocol for the export of frozen durian. Additionally, products such as medicinal herbs, coconuts, and other frozen fruits will soon gain access to the Chinese market.

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