Vietnam’s banana exports could potentially surpass the US$1 billion threshold in the near future due to increased investment, value-chain-driven production, and expanded export markets, a number of experts and industry insiders have highlighted. They shared this optimistic outlook during a recent forum held in Ho Chi Minh City that focused on strategies for preventing and controlling Panama disease in bananas.
Assoc. Prof. Dr. Le Quoc Doanh, a previous deputy minister of Agriculture and Rural Development and current chairman of the Vietnam Gardening Association, shed light on the current state of banana production in Vietnam. He indicated that the country produces approximately 2.8 million tonnes of bananas annually.
Doanh pointed out that both the acreage dedicated to banana cultivation and the resultant yields have been on an upward trend. This growth reflects an increasing market demand and the sector’s expanding production capacity.
In 2024, bananas accounted for about $372-378 million of Vietnam’s total fruit exports, trailing behind durian, dragon fruit, and coconut. Nonetheless, Doanh believes the current contribution of bananas to the export economy is still quite modest relative to the sector’s production scale and overall potential.
Pham Quoc Liem, chairman of U&I Agriculture Corporation, shared his insights from a business point of view. He mentioned that the global banana market was worth approximately $15.3 billion in 2024, and is projected to balloon to $21 billion by 2030. Vietnam, despite being the ninth largest banana producer globally, has a relatively low share in banana exports.
Liem also highlighted that Vietnamese bananas command less than 40% market share in China, around 3% in Japan, and below 17% in South Korea. These figures suggest that there is a significant potential for growth in these markets.
The banana industry in Vietnam, while having strong prospects, faces several challenges. Nguyen Quoc Manh, deputy director of the Department of Crop Production and Plant Protection, stated that producers have limited access to market information. This problem is compounded by sharp fluctuations in prices, especially for shipments that fail to meet official export standards.
Furthermore, stricter technical barriers in some markets, particularly those related to plant quarantine and chemical residue limits, are intensifying pressure on both farmers and exporters.
Doanh identified plant disease as the greatest threat facing the sector, with Panama disease being the most dangerous. He called for a comprehensive strategy that encompasses plant varieties, cultivation techniques, production organization, and market development.
Panama disease has been a major global issue since the mid-20th century, inflicting an estimated $1 billion in losses each year. Vietnam has experienced the effects of this disease since 2016-2017, leading to significant reductions in Cavendish banana production and forcing farmers to switch to alternative crops.
To mitigate the disease’s spread, Vietnam has participated in international cooperation programs such as the Asia-Pacific Banana Network. The country has also boosted its own research and training efforts.
Dr. Tran Ngoc Hung from the Fruit and Vegetable Research Institute emphasized that the most sustainable solution is developing banana varieties that are resistant to Panama disease.
Experts have concurred that with effective disease control, sustainable production restructuring, and stronger value chains, Vietnam’s banana industry can potentially become a billion-dollar export in the near future.
Manh projected that the total area dedicated to banana cultivation in Vietnam this year would be around 163,000-163,500 hectares, with an estimated annual output of 2.75 million tonnes.
– What is the current value of Vietnam’s banana exports?
In 2024, Vietnam’s banana exports were worth approximately $372-378 million.
– What challenges does the banana sector in Vietnam face?
The key challenges include limited access to market information for producers, price fluctuations, increasingly strict technical barriers in export markets, and threats from plant diseases, particularly Panama disease.
– What is the projected annual output of bananas in Vietnam?
Vietnam is projected to produce an estimated 2.75 million tonnes of bananas annually.
