Coffee, rice, vegetables and cashew nuts are the items that contributed the most to the 15.76 billion USD turnover of Vietnamese agricultural products in the first half of the year.
Since the beginning of the year, the Vietnamese agricultural market has recorded many positive changes. According to a report from the Ministry of Agriculture, in the first half of the year, the turnover of the main agricultural products reached 15.76 billion USD, up 24.4% over the same period last year. Of which, 7 products and product groups exceeded the 1 billion USD mark: coffee, rubber, rice, vegetables and cashew nuts.
Coffee is the most prominent product with a remarkable growth rate. In the first 6 months of the year, Vietnam exported 902,000 tons of coffee, reaching a turnover of 3.22 billion USD. Although the export volume decreased by 10.5%, the value increased by 34.6% thanks to the coffee price increasing by 80% compared to the same period last year, reaching 125,000 VND/kg on July 26. With high prices and world market demand, this year’s coffee export is expected to break last year’s record.
Rice also continues to affirm its position as a key agricultural product with the third largest supply output in the world. In the first half of the year, rice exports reached 4.68 million tons, equivalent to nearly 3 billion USD, up 10.4% in volume and 32% in value over the same period. Rice prices are currently around 559-570 USD per ton. Major import markets such as the Philippines, Indonesia, China and Africa continue to increase purchases with double-digit increases.
Branch Vegetables recorded many positive marks in the past two years. In the first 6 months of 2024, the export value of fruits and vegetables reached 3.33 billion USD, up 24.3% over the same period last year. Durian contributed the most, accounting for 30% of the industry’s total export turnover. China was the largest market, reaching 2.2 billion USD, up 22.6%, followed by Korea, the US and Japan. Export prices of fruits and vegetables also increased compared to last year, especially durian, dragon fruit, mango and banana.
Export cashew reached nearly 2 billion USD with 350,000 tons, up 24.9% in volume and 17.4% in value. The price of raw cashew nuts increased to a record 43,000-45,000 VND per kg, double that of the same period last year.
In the first half of the year, exports rubber reached about 722,000 tons, worth 1.09 billion USD. Although the export volume decreased by 5.8%, the value increased by 4.5% compared to the same period last year.
According to industry associations, this strong growth is largely due to increased purchases from major markets such as China, the US, the Philippines, Japan and South Korea. The impact of the El Nino phenomenon also reduced the supply of agricultural products, pushing prices of many commodities to record levels.
Harvesting off-season durian in Cai Lay town, Tien Giang. Photo: Hoang Nam
It is forecasted that in the second half of the year, Vietnam’s agricultural exports will continue to be favorable thanks to seasonal factors and abundant supply.
Mr. Nguyen Nam Hai, Chairman of the Vietnam Coffee and Cocoa Association (VICOFA), said that Vietnam is the world’s largest exporter of robusta coffee, but supplies are running out. Since June, exports have decreased by 40% compared to the average of many years, causing coffee prices to continue to increase and find it difficult to fall below VND100,000 per kilogram. In 2023, coffee exports reached a record of over 4.2 billion USD. VICOFA forecasts that this year, coffee exports could exceed 5 billion USD thanks to high prices.
The Vietnam Food Association believes that the demand for rice in the world market is still very large. Traditional markets such as China, the Philippines, and Indonesia have all increased their import quotas. Indonesia plans to import 5.18 million tons of rice, of which it recently opened a bid to buy 320,000 tons of 5% broken rice, creating opportunities for Vietnamese rice. The Philippines also increased its import volume from 3.8 million tons to 4.5 million tons.
As a “rising star”, the fruit and vegetable group is also forecast to reach the 7 billion USD target this year. Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, said that Vietnamese products are of increasingly high quality and are favored by many markets. Durian – the main product of the fruit and vegetable group – is gaining a position thanks to its low price, freshness, and fast shipping time. From July, August, September and October, durian output will increase when the Central Highlands enters the season.
Vietnam and China have completed technical negotiations and are about to sign a protocol on the export of frozen durian. In addition, products such as medicinal herbs, coconuts and other frozen fruits will also soon be opened for import by China.