The War had been finished since 1975 and nowadays more doors have been opened for Vietnam economy to join the international business. However, due to strict control laws and high aviation fees, Vietnamese fresh fruits are facing few obstacles at the moment.
Vietnamese fresh fruits from the local market
Want to find out what kind of obstacles are they? Let’s continue to read our article today for more info.
- 1. It is hard to find international buyers:
Vietnamese fresh fruits are having trouble finding international buyers for its tropical fruit, even though most of the export licenses for international markets have been acquired, such as Canada, US, Australia, and Japan.
Vietnamese fresh fruits are struggling with international export
Earlier on September 2017, Australia has finally opened their doors for fresh dragon fruit to be imported to their country, after nine years of negotiations between both countries. The first shipment had been successfully made in September 2017.
Fresh Mango, on the other hand, is not so lucky with the US. Here are a few reasons why:
- - To be imported to the US, fresh mangoes from Vietnam will need to go through a lot of like: orchard requirements, irradiation treatment and being inspected at the port of entry.
- - A phytosanitary certificate issued by Vietnam’s Plant Protection Department is a must for those companies who want to import Mango to the US.
- - Even if both requirements above are met, the Mango business also depends on consumer tastes and distribution channels.
- - Fresh Vietnamese Mango will also to have to compete with Mexico (the US’s neighbor). They somehow got a better quality compared to Vietnam and also met all the requirements from the US.
- 2. High transport fees will make retail costs higher when going to overseas markets.
Let’s take a look at these examples below for a better view on this point:
- The Vietnamese dragon fruit is sold only for $0.8 per kilogram while in Vietnam country, however when arrived in the U.S., its price will end up at $8 per kilogram.
- While Vietnamese lychees are only sold for $1 per kilogram in Vietnam, when arrived in Australia, its price will be ended up at $16 per kilogram in Australia.
High on transport fees is one of the main obstacles
Most of local Vietnamese fresh fruits exporters have agreed that aviation fees cost more than half of Vietnamese fruit export prices, making their products uncompetitive with other countries like Thailand and Mexico.
- 3. Lack of promotion campaigns.
Alongside high aviation fees, poor trade promotions are another main reason that slowing down Vietnamese fresh fruits expansion. Few states in the US have admitted that they did not aware of Vietnamese products when they arrived in the US because our local fruits are only sold only in some specific areas.
Lack of promotion campaign in another obstacle
- 4. So what is the solution for all of this?
Overall, in order to boost exports, we have to solve all the problems above as soon as possible by changing our export process from the bottom up, together with taking care of farmers and help them to deliver their products to overseas
Vietnamese fresh fruits have the best quality with competitive price; however, they are struggling to deliver to other countries outside of Vietnam due to few obstacles have been listed above. Hopefully, government, local fruit exporters, and farmers could find their voice to solve this matter in the near future.
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