HÀ NỘI — Việt Nam needs a strategy to develop its coconut industry to capitalise on soaring global demand to expand export sustainably.

With more than 200,000ha of coconut plantations and an annual output of around two million tonnes, Việt Nam ranks fifth in the world in terms of coconut production. Coconut exports also reached US$1,089 billion last year, from a modest baseline of $180 million in 2010.

In particular, exports of fresh coconuts jumped by 18 per cent to $33.3 million in the first two months of this year, while processed coconut products soared 86 per cent to $43.8 million.

The US and China are potential markets for Việt Nam’s coconuts while Vietnamese coconuts are also gaining traction in the US market, which consumes coconuts year-round, thanks to their natural flavour and high quality.

Following a protocol signed in August, China is expected to import $250 million worth of coconuts from Việt Nam this year.

The global demand is bringing significant opportunities for Việt Nam to promote the coconut industry and position it as a pillar of the agricultural economy in 2025. 

However, the coconut industry is facing multiple challenges. In Bến Tre and Tiền Giang where there are more than 100,000ha of plantations, prolonged drought, saltwater intrusion and pest outbreaks have badly affected yields, leading to a supply shortfall and price surges.

Coconut prices are now around VNĐ170,000 – 180,000 (US$6.7-7) per dozen, nearly tripling the same period last year.

According to Cao Bá Đăng Khoa, General Secretary of the Việt Nam Coconut Association, the surge is being driven by declining supply, increasing demand in northern markets during the hot season and for exports. High prices benefit farmers, but cause instability for exporters and processors.

To seize the opportunity from rising coconut prices and global demand, Việt Nam needs to develop a strategy for the coconut industry, Khoa said, adding that the focus must be on developing strong brands for fresh coconuts, coconut milk and oil, cosmetics and handicrafts. 

He said deep processing and product diversification will help increase the added value. 

Experts also said that it is necessary to develop plantation areas which meet stringent quality requirements of the US and the EU. Investments in post-harvest processing, technology, logistics infrastructure and supply chains for the coconut industry are critical.

Deputy Minister of Agriculture Phùng Đức Tiến said Việt Nam must proactively prepare for stricter international standards, especially from markets like the US and EU, and leverage trade agreements such as RCEP to expand exports.

Việt Nam Fruit and Vegetable Association forecasts coconut exports reaching $1.2 billion this year, in which fresh coconut contributes $500 million. — BIZHUB/VNS