Vietnam Fruits and Vegetable market is projected to register a CAGR of 4.5% during the forecast period (2021-2026). Fruits and Vegetables are considered as one of the major export agricultural commodities in Vietnam. The Covid-19 restrictions have resulted in the disruption of the supply chain and decreased demand in prominent export markets. Due to cross-border restrictions between China and Vietnam, the overland transport was delayed. Overall, the Vietnam fruits and vegetable market has suffered a major loss due to pandemic. The growing demand for Vietnamese fruits and vegetables among countries such as China, Korea and an increase in the number of free trade agreements to boost regional fruits and vegetable exports are some of the factors driving the market growth. China accounts for more than 50.0% of Vietnam's total fruits and vegetable exports. In recent years, the exports were reduced owing to China's tightening of import standards of fruits and vegetables. However, the country's effort to expand exports to markets such as the European Union, the United States, the Republic of Korea and Japan has opened opportunities for its fruits and vegetables. The impact of climatic changes and overuse of chemical fertilizers and plant protection products has been a cause of unsafe food affecting the Vietnamese brand of fruits and vegetables in domestic and export markets.
Key Market Trends
High Regional Exports of Fruits and Vegetables is driving the market
There is a high demand for agriculture products, which includes fruits and vegetables from Vietnam to countries such as the Republic of Korea and Japan. This, in turn, has created opportunities for Vietnam to boost export of farm produce, especially fruits and vegetables. The major exports from the country to Korea include coconut, banana, mango and dragon fruits. Free trade agreements made by The Ministry of Agricultural and Rural Development (MARD), Vietnam with Japan and Korea have offered an advantage for domestic firms to boost exports. At present, the country has its exports spread across 60 countries, which includes, European Union, United States, China and other Asian countries. With, an increase in the number of free trade agreements with the trading countries, the regional exports for fruits and vegetables are expected to increase during the forecast period.
High Demand For Banana is driving the market
Banana is an important fruit for Vietnamese, widely known as 'Chuối' is used in both in kitchen and Vietnamese spiritual life as well. In Vietnam, large varieties of bananas, which includes, Chuối Tiêu, Chuối Quả Tạ, Chuối Ngự, Chuối Sáp, Chuối Cau and Chuối Sứ are grown. Although each of variety has a different taste and characteristic, all varieties have a natural and sweet taste. Chuối Tiêu and Chuối Quả Tạ are used in medicine as anti-inflammatory protection and in the treatment of high blood pressure. Fresh banana leaf is commonly used to wrap sticky rice and many different kinds of Vietnamese cakes like Bánh Chưng, Bánh Ú, and Bánh Ít. Further, small banana buds are used as a common ingredient for any kind of salads or served in noodle soup, especially clam noodle soup. With a wide range of applications in for household and medicinal applications, the demand for bananas is expected to grow during the forecast period.
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