The coconut processing industry faces the risk of serious lack of raw materials when many factories in Ben Tre have been invested but the supply is insufficient.
This is the warning of Ms. Nguyen Thi Kim Thanh, President of the Vietnam Coconut Association, at the forum “Connecting production and consumption of coconut products” in Ben Tre on December 13 by the Department of Quality, Processing and Development. Market development organized by Agriculture newspaper.
According to Ms. Thanh, the domestic price of coconuts once dropped to a record low, only 1,000 VND per fruit, making farmers discouraged and afraid of this type of tree. Meanwhile, many processing enterprises are forced to operate moderately, with capacity only reaching 10-15% due to lack of raw materials.
Another serious problem is the situation where many businesses set up preliminary processing facilities in Vietnam but export raw materials to other countries, especially China, for further processing.
Ms. Nguyen Thi Kim Thanh, President of the Vietnam Coconut Association shared at the forum in Ben Tre. Image: Minh Dam
The Chairman of the Vietnam Coconut Association said that the reason comes from the export tax policy of dried coconut raw materials at 0%, creating a great advantage for exporting raw materials but causing heavy damage to the domestic processing industry. . In addition, on January 1, 2025, Indonesia – one of the world’s largest sources of dried coconut raw materials – will impose an export tax of up to 80% to protect domestic raw material sources, causing supplies from This country has shrunk significantly.
Ms. Thanh emphasized that without adjusting tax policies and creating reasonable protective barriers, the Vietnamese coconut industry will not only lose its competitiveness but also face the risk of serious recession in the long term.
Mr. Nguyen Van Phuong, Director of Phuong Nam Coconut Company, also shared that coconut raw material sources have not only decreased in quantity but also in quality. As the weather changes, farmers cut down coconut trees to convert crops, causing supply to become increasingly depleted.
“Without policy support, the coconut industry will face even greater difficulties,” Mr. Phuong said. In addition, he also called on businesses to cooperate in building a sustainable coconut value chain, from cultivation, processing to consumption, to ensure long-term development of the coconut industry.
In this context, logistics plays a key role in enhancing the competitiveness of the coconut industry. Mr. Dang Dinh Long, Chairman of the Board of Directors of Mega A Logistics Company, said that logistics units have coordinated closely with the agricultural industry to lower transportation costs and increase economic efficiency for Vietnamese coconut products. . In addition to transport by road through border gates, sea transport is proving outstandingly effective. Cold supply chains, including storage and freezing facilities, have been significantly improved, helping Vietnamese coconuts penetrate deeper into the Chinese market and beyond.
Through a modern logistics chain, the cost of transporting exported coconuts can be reduced to only about 3,000 VND per fruit. In addition, upgrading growing area codes and packaging facilities has helped speed up inspection and customs clearance of goods, creating favorable conditions for export businesses. However, to maintain and develop sustainably, businesses need to clearly understand the regulations of each import market to orient production in accordance with the technical standards and tariffs of each country.