Vietnam’s coconut imports skyrocketed nearly 19-fold to US$31.2 million in the first seven months of this year, as the nation grapples with a domestic supply shortage, according to the Vietnam Fruits & Vegetables Association.
Dang Phuc Nguyen, general secretary of the Vietnam Fruits & Vegetables Association (Vinafruit), attributes this surge in imports to an increase in fresh coconut exports, which have tightened supply for local processors. “Markets such as China, the U.S., and the Middle East are ramping up orders from Vietnam, leaving us with less fruit for domestic uses,” he noted.
The U.S. officially opened its market to fresh coconuts from Vietnam in 2023, followed closely by China in August 2024. In the first seven months of this year, coconut exports reached $306.2 million, fueled by a 57% increase in processed coconut and a 15% rise in fresh coconut shipments.
To meet the increasing demand, many processing companies have turned to imports from Indonesia and Papua New Guinea. However, an official trade agreement with Papua New Guinea is still pending, limiting the scope of these imports.
This shortage has driven farm gate coconut prices to a staggering VND19,000 per fruit in the first half of the year, as reported by the Vietnam Coconut Association. Retail prices for premium coconuts have now reached around VND25,000, marking a six-fold increase from just four years ago—a head-turning leap in the agricultural sector.
The soaring prices have simultaneously sparked an expansion in coconut cultivation. Vietnam now boasts over 200,000 hectares dedicated to coconut farming, yielding around two million tons of the fruit each year. Interestingly, it seems that the coconut is not just a fruit; it’s becoming the golden child of Vietnamese agriculture!
What factors have contributed to the surge in coconut imports in Vietnam?
The dramatic increase in coconut imports can be attributed to a significant rise in exports, particularly to markets like China, the U.S., and the Middle East, which has reduced the supply available for domestic processing.
How have coconut prices changed in Vietnam?
Coconut prices at the farm gate have surged to VND19,000 per fruit, and retail prices for premium coconuts have climbed to around VND25,000—six times higher than four years ago.
What is the current state of coconut cultivation in Vietnam?
Vietnam has over 200,000 hectares dedicated to coconut cultivation, yielding approximately two million tons of coconuts annually, driven by the high market prices that have encouraged further expansion.
