2.

3 Supporting and Related Industries:

Supporting industries for the export and import of fruits in Vietnam are diverse and play a crucial
role in enhancing the quality and value of the products. Below are some key supporting
industries:

2.3.1 Packaging and Wrapping Industry

- To ensure that fruits are well-preserved and maintain their quality during transportation,
technologies such as Modified Atmosphere Packaging (MAP) and vacuum packaging
help extend the shelf life of fruits, ensuring they remain in the best possible condition
upon reaching consumers. Additionally, attractive and eye-catching packaging designs
enhance the perceived value of the product, making it more appealing to consumers and
helping it stand out on store shelves. Customers can easily recognize the brand, especially
with packaging that meets international safety standards.
- Packaging products that comply with international standards like ISO, HACCP, and
GlobalGAP increase the trust of foreign partners and consumers, thereby building and
maintaining the brand, helping Vietnamese fruit exporters affirm their position in the
international market.
- Data to support: The Vietnam Fruit and Vegetable Association (Vinafruit) reported that
the application of advanced packaging technology has helped increase the export value of
fresh fruits, with fresh fruit export turnover reaching over 1.8 billion USD in 2021, up
9.4% compared to the previous year. Tân Phú and An Phát Holdings are major packaging
companies in Vietnam, having invested heavily in technology and modern production
lines to provide high-quality packaging for fruit export businesses.

2.3.2 Processing Industry:

- Creating products from fruits such as juices, jams, dried fruits, and other processed
products helps increase added value and expand the market. According to the General
Department of Customs, in 2021, the export value of processed fruits and vegetables in
Vietnam reached nearly 1 billion USD, an increase of 16.3% compared to the previous
year..
- Specifically, the processing industry meets the diverse needs of the international market
through convenient products like canned fruits, concentrated fruit juices, and dried fruits,
which cater to the demand for convenient and easy-to-use products among international
consumers. This facilitates Vietnam's entry into new and challenging markets such as the
EU, the US, Japan, and South Korea, while increasing the competitiveness of Vietnamese
fruit products in the international market. Growth in the processing sector is evident as
the processed fruit segment (frozen, concentrated juices, canned fruits, etc.) grew by
nearly 40% in 2021, accounting for about 30% of the total fruit and vegetable export
turnover.

2.3.3 Transport and Logistics Industry:

 - This includes transportation services by road, sea, and air, as well as logistics services
such as cold storage, preservation, and distribution. These services help ensure that fruits
are transported safely and on time. Specifically, they support safe storage and
transportation.
- Professional cold storage and preservation services help keep fruits fresh during long-
distance transportation. The development of cold storage systems and logistics by
companies like Gemadept and Transimex has improved the efficiency of fruit storage and
transportation. Moreover, improving logistics infrastructure helps reduce transportation
costs and increase delivery speed.
- According to the Vietnam Logistics Report 2020, logistics costs account for about 20%
of Vietnam's GDP, and improvements in this area have contributed to reducing costs and
increasing competitiveness for fruit export businesses. Furthermore, efficient logistics
systems can help expand export markets to many new countries. This is particularly
important for demanding markets such as the EU, the US, and Japan, which have high
requirements for quality and delivery times.

2.4. Demand for This Sector

The top 10 fresh fruits exported by Vietnam in 2021 included dragon fruit (accounting for the
highest proportion at 33.9%), mango (6.5%), banana, jackfruit, coconut, durian, lemon,
watermelon, lychee, and passion fruit. The top 10 markets for Vietnamese fruit consumption
included China, the United States, Japan, South Korea, Thailand, Taiwan, Hong Kong, the
Netherlands, Russia, and Australia. Over the years, China has been known as the largest
consumer market for Vietnamese fruits, primarily through unofficial border trade. In response,
Vietnam's agricultural sector is rapidly promoting official exports of fruits to China.
Additionally, efforts to diversify export markets have been promoted through negotiations to
open markets for key agricultural products such as durian, passion fruit, grapefruit, and longan to
challenging markets like the United States and Japan. Recently, Vietnam's fruit industry has
received positive news as many types of Vietnamese fruits have been officially licensed for
export to major markets, opening up a bright and sustainable future for Vietnamese agricultural
products.

2.4.1 China – Promoting Official Export Transformation

China leads the top five importers of Vietnamese fruits and vegetables, with exports to
this country accounting for more than 63% of Vietnam's total export value. As a market
accounting for nearly half of the annual export turnover, China is always considered a
key partner for Vietnamese fruits. However, by the end of 2021, this market had only
granted official import permits for nine types of fruits from Vietnam, including mango,
dragon fruit, banana, longan, lychee, watermelon, rambutan, jackfruit, and mangosteen.
Most export volume depended on unofficial border trade, which is risky and easily
disrupted by border policies between the two countries. To change this situation, since
early 2022, Vietnam has been continuously negotiating with China to promote the official
licensing of more Vietnamese fruits and has achieved initial successes. Starting from July
 1, 2022, the General Administration of Customs of China issued a document agreeing to
pilot the import of passion fruit from Vietnam under specific conditions. Following
passion fruit, durian became the second Vietnamese fruit officially licensed for official
export to China in 2022, according to the protocol signed on July 11, 2022. Thus, passion
fruit and durian are the 10th and 11th types of Vietnamese fruits permitted to be imported
into China, raising hopes for many other fruits to have the opportunity to "officially"
access this large market.

- In 2022, Vietnam's fruit and vegetable export turnover to China reached approximately 1.2
billion USD in the first 10 months, accounting for 43.9% of Vietnam's total fruit and vegetable
export turnover. In October 2022, Vietnam's fruit and vegetable export turnover to China reached
151.7 million USD, up 64.4% compared to September 2022 and 44.2% higher than in October
2021. In the first 10 months of 2022, fruit and vegetable export turnover to China reached 1.2
billion USD, down 25.8% over the same period in 2021. Vietnam's fruit and vegetable export
turnover to China in the first 10 months of 2022 accounted for 43.9% of Vietnam's total export
turnover of this item, lower than 54.5% in the first 10 months of 2021. Meanwhile, according to
the Vietnam General Department of Customs, in the first 11 months of 2023, Vietnam's total
fruit and vegetable exports reached 5.19 billion USD, up 70.3% over the same period last year.
China remained Vietnam's largest fruit and vegetable export market in the first 11 months of
2023, with a value of 3.4 billion USD, up 149% over the same period last year.

2.4.2 The United States – A Potential Target Market

- Every year, American consumers consume approximately 12 million tons of fruit;

however, domestic supply currently only meets 70% of the country's consumption
demand. Therefore, the demand for imported fruit in the U.S. is relatively high, making it
a potential target market for Vietnam's fruit industry. As of now, the U.S. has
successively granted import permits for six types of Vietnamese fruits, including mango,
longan, lychee, dragon fruit, rambutan, and star apple. The export volume of these
products from Vietnam to the U.S. has also gradually increased over time.

- According to statistics from the General Department of Customs, Vietnam's fruit and
vegetable exports to the U.S. have seen significant growth, rising from 58.6 million USD
to 222.8 million USD during the period 2015-2021. In the first six months of 2022,
Vietnam's fruit and vegetable export turnover to the U.S. maintained good growth,
increasing by 23% compared to the same period last year, reaching 136.8 million USD.

- In the near future, Vietnam's fruit exports to the U.S. are expected to further improve as
U.S. authorities have announced the completion of procedures to allow the import of
green-skinned pomelo from Vietnam in May 2022. This means that pomelo is the seventh
fruit allowed to be imported into the U.S. market.

- In October 2022, Vietnam's fruit and vegetable export turnover to the U.S. reached 21.5
million USD, up 16.6% compared to September 2022 and 17.7% higher than in October
 2021. In the first 10 months of 2022, Vietnam's fruit and vegetable export turnover to the
U.S. reached 219.0 million USD, up 18.8% over the same period in 2021. The export
turnover of Vietnam's fruit and vegetables to the U.S. in the first 10 months accounted for
8.0% of the total fruit and vegetable export turnover, higher than the rate of 6.2% in the
same period in 2021.

2.4.3 Other countries such as Thailand, Japan, and South Korea.

- Additionally, other markets also play an important role in consuming Vietnamese fruits,
such as Thailand, Japan, and South Korea.

- According to statistics from the General Department of Customs, Vietnam's fruit and
vegetable exports in 2021 increased by 8.6% compared to 2020. The high demand for
agricultural products, including fruits and vegetables, from Vietnam to countries like
South Korea and Japan, creates opportunities for Vietnam to boost agricultural exports,
especially fruits and vegetables. Although total fruit exports decreased, exports to certain
regions have increased over the past four years up to 2020. Specifically, fruit and
vegetable exports to South Korea increased by 10.1% and to Japan by 20.1% in 2021.
The main export items from Vietnam to South Korea include coconut, banana, mango,
and dragon fruit.

- In October 2022, Vietnam's fruit and vegetable export turnover to Thailand reached 18.3
million USD, down 30.0% compared to September 2022 and up 17.1% compared to
October 2021. In the first 10 months of 2022, Vietnam's fruit and vegetable export
turnover to Thailand reached 153.4 million USD, up 26.4% over the same period in 2021.
The export turnover of fruits and vegetables to Thailand in the first 10 months of this year
accounted for 5.6% of the total fruit and vegetable export turnover, higher than the rate of
4.1% in the first 10 months of 2021.