Vietnamese durian market has been flooded with Thai durians just starting this year’s harvest season. Immediately, Thai durians have flooded the Vietnamese market. On online markets, Fumani durians, a type of mini durian from Thailand weighing between 0.6 and 1.8 kilograms per fruit, are being sold in abundance at prices ranging from 95,000 to 150,000 VND per kilogram, depending on the variety.
In comparison to the general price level, Thai durians are currently cheaper than Vietnamese Ri6 and Monthong durians. This is the reason why Thai durians are preferred by Vietnamese consumers these days. Consequently, a fruit shop can consume several tons of Thai durians every day.
Currently, there are no specific statistics on Thai durian imports into Vietnam. However, from April to September each year, various types of Thai durians flood the Vietnamese market, penetrating segments ranging from low- to high-end.
Meanwhile, in the Chinese market, Thailand has made many efforts to maintain its number one position as market share tends to decline.
Thai durians are being sold in abundance in the Vietnamese market.
The Thai Ministry of Agriculture has instructed the Fruit Committee to meet durian farmers, those who classify and cut durians, entrepreneurs, managers of classifying and packing plants … to ensure exported durians meet the quality standards and GAP requirements of China.
Moreover, at a Thai Cabinet meeting in early April, Prime Minister Srettha Thavisin directed his country’s Ministry of Agriculture to propose regulations to establish standards for durians. The purpose is to maintain the quality of Thailand’s exported durians and prevent the sale of young fruit.
In addition, Thailand also has special forces to handle the problem of smuggling durians from other countries to export fake Thai durians. This is also an action to protect the durian brand of this country.
Thailand’s authorities estimate that durian consumption in the Chinese market is increasing, predicting that demand will exceed 1 million tons in 2024. In the future, Chinese durian consumption is expected to increase fifteenfold from current levels, reaching around 15 million tons.
Facing emerging competitors in ASEAN and China itself, Thailand aims to maintain its leading position in durian exports by focusing on quality and expanding markets. Thailand aims to achieve durian export revenue of 1,000 billion baht (approximately $27 billion USD) in the coming years.
This year, the figure is 1 million tons, with expected revenue of 130 billion baht (about $3.51 billion USD), mainly exported to China.
Vietnam has an advantage and needs to learn from Thailand
In the race to export durians to China, the world’s largest consumer market, Vietnam has a geographical advantage of proximity, and durians are harvested year-round. Meanwhile, Thailand’s durians are only harvested once a year for a few months.
However, Mr. Dang Phuc Nguyen, Secretary-General of the Vietnam Fruit and Vegetable Association, sees Thai durians as superior, and Vietnam needs to learn from them.
He pointed out that as soon as our country began exporting mainstream durians to China, Thailand took the initiative to raise its export quality standards to maintain market stability.
“They have quality standards for dryness, regulations on harvesting times for each growing region. There are measures to inspect goods before export. Not only checking for pests and diseases, but also checking the ripeness of the durian,” Mr. Nguyen said. Durians must meet these standards to be allowed for export. If immature durians are found, besides destroying the shipment, businesses are also fined.
Meanwhile, we have only controlled pests and diseases on durians under a decree, “keeping open” the issue of quality such as ripeness, dryness, good or bad fruit, ripe or immature. Durian quality depends entirely on growers and traders.
Therefore, in our country’s growing areas, the situation of “forcing” immature durians to be sold to China when prices rise, supply shortages, leading to the consequences of Vietnam’s product competition poor, especially in terms of prices. It also affects the reputation and brand of Vietnamese durians in the Chinese market, Mr. Nguyen said.
In fact, many export businesses reflect the situation of immature durians being forced to cut when exported goods are returned, affecting credibility. The situation of pushing durian prices too high makes it difficult for businesses to purchase, supply chains broken, unable to return export orders …
Of note, Vietnam’s durian area has increased to 130,000 hectares, meaning that in just a few years, durian output will double the current level. Therefore, Mr. Nguyen and businesses believe that Vietnam needs to issue standards, quality standards for durians soon. In addition, there must be sanctions against cases of immature durian exports.
Without strict control over quality issues, freely floating and exporting in bulk will easily lead to returns, affecting credibility, brand, and even losing the market that we have spent many years opening. When the market is unstable, production increases sharply, the story of surplus is present.
