Fruits from certified export orchards in Vietnam now command prices between VND25,000-30,000 per kilogram, a drop from VND35,000-40,000 at the season’s outset. Luc, a seasoned lychee farmer from Bac Giang Province’s Luc Ngan District—the country’s leading lychee producing region—revealed that prices have plummeted by a third compared to last year, putting his profit margins at risk.
Despite producing high-quality lychees from his one-hectare orchard, Luc warns he may barely break even if market prices do not rebound. Growers report that the production cost for a kilogram of lychee, including packaging, hovers between VND8,000-12,000. In southern Vietnam, retail prices range from VND25,000-40,000 per kilogram, reflecting a nearly 30% dip from earlier this month and a staggering 50% drop compared to the same time last year.
Giang, another farmer from Hai Duong Province’s Thanh Ha District, explains that an oversupply of lychees coupled with fierce competition from other tropical fruits has contributed to the current price slump. The situation has been exacerbated by a 26.6% year-on-year decline in lychee exports during the first four months of this year, with 17 markets pulling back on imports, notably the Netherlands and France, which reduced purchases by 84% and 40%, respectively. However, markets such as the U.S. and China have seen increases in demand, ranging from 25% to 116%.
Transportation costs, propelled by ongoing tensions in the Middle East, have also played a significant role in suppressing imports. Competing with Vietnam, China has stepped up its own lychee exports, putting additional pressure on the market.
This year, Vietnam’s lychee output is projected at about 250,000 tons—up 25% from 2022—with Bac Giang accounting for a substantial 165,000 tons. Yet, since the season launched, the province has managed to sell only 13,000 tons locally, with export figures remaining modest.
In a move to ease the situation, the Bac Giang Department of Industry and Trade is advocating for processing initiatives, such as drying, juicing, or freezing the fruit, as a strategy to broaden sales channels. They launched a promotional program in both Hanoi and Ho Chi Minh City this week, aiming to boost the visibility and demand for this seasonal delicacy.
How has the lychee market in Vietnam changed this year?
This year, Vietnam’s lychee market has experienced a significant downturn, with prices dropping by a third compared to last year, largely due to oversupply and competition from other fruits.
What factors are affecting lychee exports from Vietnam?
Lychee exports have fallen due to reduced demand from several markets, including notable decreases from the Netherlands and France, alongside rising transportation costs and increased competition from Chinese lychee exports.
What steps is Bac Giang Province taking to improve lychee sales?
Bac Giang Province is encouraging businesses to process lychee into products like dried fruit and juice to diversify sales channels, while also rolling out promotional programs in major cities like Hanoi and Ho Chi Minh City.
