HÀ NỘI — Coconut has been recognised as one of Việt Nam's six key industrial crops (alongside coffee, rubber, tea, cashews, and pepper) under the Master Plan for Developing Key Industrial Crops by 2030.

The coconut industry has seen remarkable growth, with export turnover increasing from $180 million in 2010 to over $900 million in 2023, and it is projected to surpass the $1 billion milestone this year.

By 2030, the nationwide coconut cultivation area is expected to stabilise between 195,000 and 210,000 hectares, primarily concentrated in the Mekong Delta (170,000–175,000 hectares), with the remainder distributed across the south-central coast, north-central coast and southeast regions.

Speaking at the 'Connecting Production and Consumption for Coconut Products' forum on December 13, Nguyễn Thị Thanh Thủy, Director of the Department of Science, Technology and Environment under the Ministry of Agriculture and Rural Development (MARD), said that according to Decision 431/2024/QĐ-BNN-TT, the target for 2030 would be to maintain the coconut cultivation area at 200,000 hectares.

Since this target had already been met, future development efforts should focus on improving product quality and leveraging coconut by-products to create a variety of high-value-added goods.

The acceptance of Vietnamese coconuts in the US and European markets, along with ongoing negotiations for official export channels to China, presented significant growth opportunities for the sector.

Thủy highlighted that 30 per cent of the current coconut cultivation area met VietGAP standards, with 30 per cent of growing areas granted traceability codes. These advancements had increased product value and farmers' incomes, while processed coconut products held significant potential as high-value exports.

China, with an annual demand of approximately four billion coconuts — 2.6 billion of which are fresh coconuts — is emerging as a crucial market, according to MARD. A recently signed protocol between MARD and China’s General Administration of Customs allows the official export of fresh Vietnamese coconuts to China. Strict compliance with phytosanitary standards, food safety, and registration of cultivation and packaging facilities are key to sustaining a stable supply to this market.

Ngô Xuân Nam, Deputy Director of the SPS Việt Nam Office, estimated that fresh coconut exports to China could generate $250 million in 2024, accounting for 25 per cent of the sector's total export value. However, he cautioned that enterprises must address increasingly stringent pesticide residue limits (MRLs) not only in China but also in the European Union.

According to Huỳnh Quang Đức, Deputy Director of the Department of Agriculture and Rural Development in Bến Tre, the province accounts for over 88 per cent of the Mekong Delta’s coconut area and nearly 42 per cent of the nation’s total, contributing more than $350 million annually in export value.

Bến Tre has developed 133 cultivation areas with traceability codes covering over 8,300 hectares and expanded organic coconut farming to more than 20,700 hectares. These efforts have positioned the province as a major supplier of high-quality raw materials to markets such as the US, EU, Japan, China, Canada and South Korea.

Nguyễn Phong Phú, Technical Director at Vina T&T Group, emphasised that while China was a lucrative market, it was highly competitive. Vietnamese businesses must improve product quality, offer competitive pricing and ensure food safety.

Meeting China’s rigorous phytosanitary and safety standards, as well as those of the EU, necessitated the development of robust quality management systems, good agricultural practices, traceability and pre-export sample testing.

Lê Thanh Hòa, Deputy Director of the Department of Quality, Processing and Market Development under MARD, stressed that the inclusion of coconut in the list of key industrial crops marked a turning point for the industry. While tariff reductions under free trade agreements created opportunities, they also posed challenges.

Enterprises and local governments must devise specific strategies to elevate the value and reputation of Vietnamese coconut products and support farmers in enhancing production.

Hòa concluded: "Vietnamese businesses need strategies to increase export prices, ensuring the added value benefits farmers through higher purchasing prices. This is the sustainable path for the coconut industry in an increasingly globalised market." — VNS