CAN THO – Vietnam’s coconut exports have surged following China’s approval of official trade for the produce, leading to a raw material shortage for domestic processors.
In the first 10 months of 2024, coconut exports reached US$313 million, according to the General Department of Vietnam Customs. Whole coconut exports totaled US$125.5 million, soaring 77.3% over the same period last year, while processed coconut products brought in US$188 million, up by 51%.
China’s significant demand for dry coconuts is depleting supplies for domestic processors, said Nguyen Thi Kim Thanh, chairwoman of the Vietnam Coconut Association.
To mitigate the shortage, some Vietnamese companies have turned to importing dry coconuts from Indonesia, with imports amounting to hundreds of containers each month, Thanh noted. However, Indonesia’s upcoming 80% export tax on dry coconuts, set to take effect on January 1, 2025, could further disrupt this supply chain, she added.
The raw material shortage has already forced several Vietnamese processors to either reduce production or halt operations.
Despite these challenges, the export boom presents opportunities for growth in Vietnam’s coconut sector. The Ministry of Agriculture and Rural Development has outlined a plan to expand coconut cultivation to 210,000 hectares by 2030 as part of its key industrial crop development strategy.
Vietnam’s primary export markets for coconuts include China, the U.S., Japan, South Korea, and Europe. The product range spans fresh coconuts to processed goods such as coconut water, powder, oil, and packaged items.
