Vietnam’s durian exports have experienced significant growth, reaching a turnover of over 1.7 billion USD in the first 7 months of 2024. China represents over 70% of the total export turnover and is a key market. Nevertheless, Vietnam faces tough competition from Malaysia and Indonesia as they have officially entered this market. 

Durian export speed 

In recent years, durian has emerged as one of Vietnam’s key agricultural export products, contributing greatly to total export turnover. In the first 7 months of 2024 alone, durian export turnover reached 1.7 billion USD, an increase of more than 66% over the same period last year (quoted from Vietnam.vn). It is forecasted that in 2024, this figure could reach 3.5 billion USD, nearly double that of 2023 (durian export value reached about 1.8 billion USD). 

In the first 7 months of 2024, durian export turnover increased by more than 66% over the same period last year 

This growth is largely due to expanding planting areas and applying advanced technical measures to improve product quality. In addition, Vietnamese enterprises have also focused more on building brands and expanding export markets, especially the Chinese market, where the demand for durian is very high.

China is the main durian import market

China is currently the largest durian import market in Vietnam, accounting for more than 70% of the total durian export turnover of the country (quoted from Dragon Hub). The reason why China has become the main market is due to the increasing demand for durian in this country, especially durian from Southeast Asia such as Vietnam and Thailand. 

Vietnam has certain advantages in supplying durian to the Chinese market, such as its close geographical location, helping to reduce transportation costs and storage time, at the same time, the synchronization in export standards and plant quarantine has been enhanced, helping Vietnamese durian products meet the strict requirements of China. 

Not only that, the increase in durian exports to China is also promoted by free trade agreements between the two countries, helping to reduce trade barriers and tariffs, and creating more favorable conditions for Vietnamese businesses to access this market. 

China is the main market importing Vietnamese durian – accounting for more than 70% of total export turnover

Challenge: Malaysia, and Indonesia “squeeze” into the Chinese durian market 

Although Vietnam is dominating the Chinese market, competition from other countries such as Malaysia and Indonesia are increasing significantly. Malaysia, with its famous Musang King durian, has established a strong brand in China, attracting many consumers. Malaysia’s Musang King durian is highly appreciated for its distinctive flavor and consistent quality, creating fierce competition with Vietnamese durian. 

Indonesia is not far behind as it has begun to boost durian production and export to China. With a policy of encouraging farmers to increase durian growing areas and improve product quality, Indonesia is gradually asserting its position in the international market, especially in China. 

The challenge from Malaysia and Indonesia comes not only from product quality but also from strong investment in marketing and branding, which Vietnamese businesses need to learn to maintain and expand market share in China. 

Opportunity: Vietnam’s frozen durian is officially licensed to enter China 

A significant step forward in 2024 is that Vietnam’s frozen durian is officially licensed for export to China. This is a great opportunity for Vietnamese businesses to expand their markets and diversify their export products. Frozen durian has the advantage of retaining its flavor and quality for a long time, helping to extend the shelf life and minimize the risk of damage during transportation, especially for long-distance orders. 

August 19, 2024: China has officially “opened” the door to Vietnamese frozen durian

Exporting frozen durian also helps Vietnamese businesses reduce seasonal pressure, as durian can be harvested and frozen for export throughout the year, instead of focusing on just one season. This not only helps stabilize supply but also increases the competitiveness of Vietnamese durian in the international market. 

In addition, the diversification of durian products does not stop at fresh and frozen products but also extends to other processed products such as dried durian and durian cakes, helping to increase export value and meet the diverse needs of consumers.

Vietnam’s durian development strategy 

To maintain and develop durian exports in the context of increasingly fierce competition, Vietnamese enterprises need to implement several important strategies: 

• Improving product quality: Quality is always a decisive factor in maintaining and expanding export markets. Therefore, enterprises need to invest in production technology, and post-harvest preservation, and ensure compliance with international standards on food safety and plant quarantine. Applying sustainable, environmentally friendly farming methods is also an important direction to enhance brand value. 

• Brand development: Enterprises need to invest in marketing activities, promoting brands not only in the Chinese market but also in other potential markets. Participating in international fairs and agricultural exhibitions also helps to enhance brand recognition. 

• Diversifying markets and products: Although China is the main market, relying too much on one market always has potential risks. Enterprises need to seek and develop other potential markets such as Japan, Korea, the United States, and Europe. In addition, diversifying durian products such as frozen, dried, and processed products also help increase export value and meet diverse consumer needs. 

• International cooperation: Cooperating with foreign partners in research, product development, and market expansion is also an important strategy. Linking with major importers and participating in the global supply chain will help Vietnamese durians access international markets more easily. 

• Application of information technology: Using information and communication technology in supply chain management, marketing, and sales is an inevitable trend. Enterprises can take advantage of e-commerce platforms to promote products and reach global customers more effectively. 

Vietnam’s durian exports are facing many great opportunities, but also many challenges from international competition. To continue to maintain and develop the export market, Vietnamese enterprises need to focus on improving product quality, building strong brands, and diversifying durian product lines. Taking advantage of opportunities from frozen durian exports and free trade agreements will help Vietnamese durian maintain its position in the international market, bringing in large revenues for the country’s agricultural economy. 

However, competition from countries such as Malaysia and Indonesia are a factor that cannot be ignored. To overcome this challenge, Vietnam needs to invest more in production and marketing technology, and at the same time build a sustainable development strategy, to ensure that Vietnamese durian not only dominates the Chinese market but also reaches further globally. 

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