Vietnam faces challenges in agricultural exports for 2025
Tighter import regulations in mainland China, the U.S. and Taiwan are expected to impact Vietnam’s agricultural and seafood exports in 2025.
Some new regulations in Vietnam’s primary export destinations have created steep barriers for its businesses and farmers.
For instance, China, a significant buyer of Vietnamese durian, recently introduced mandatory testing for O quarantine, a potentially carcinogenic chemical, in addition to the usual cadmium inspections. This requirement, which is causing major difficulties for exporters, was introduced after the chemical was found in several Thai durian shipments in late 2024.
Doan Van Ven, general director of Anh Thu Dak Lak Co., Ltd., said his company had to recall 170 tons of durian sent in 10 containers due to non-compliance with these new standards.
In the domestic market, durian prices dropped from VND230,000 (US$9.17) per kilogram in the off-season last year to around VND90,000.
« This year has seen the most significant drop in off-season durian prices since we started exporting, » remarked Thanh, a Mekong Delta trader.
Similar challenges beset other agricultural exports, with January’s fruit and vegetable export revenues falling 11.3% year-over-year to US$417 million, due to tighter pesticide residue regulations by the U.S., EU, and Taiwan.
Reduced demand from China, owing to more stringent quarantine measures, has heavily impacted the fruit and vegetable sector. Furthermore, logistical disruptions and escalating transportation costs have complicated timely order fulfillment.
Vietnam’s rice exports are also under pressure, with high stock levels in the Philippines and Indonesia and renewed competition from India pushing prices down to US$400 per ton, the lowest in five years. A director of a rice export company in An Giang Province in the Mekong Delta admitted the difficulty in purchasing rice from farmers due to the price decline.
« The rice price in Tien Giang [Province in Mekong Delta] fields ranges from VND6,300-6,700 per kilogram, down over 30-40% from the peak, » he reported.
The seafood sector faces its own hurdles with stringent U.S. and EU regulations on food safety and anti-illegal fishing practices, forcing many Vietnamese companies to invest in technology and process improvements.
However, some see these challenges as opportunities for growth.
« There’s a recovering demand for seafood imports in major economies like the U.S., EU, and Japan, and emerging markets like Africa and the Middle East show considerable potential, » said a director of a seafood processing and export firm in An Giang.
The Vietnam Association of Seafood Exporters and Producers expects 2025 seafood export revenues to hit US$11 billion, aided by favorable U.S. tax policies as Chinese products face higher tariffs. Rong Viet Securities projects that tariffs of 60-100% on Chinese seafood will significantly benefit Vietnam. Meanwhile, Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, states that the fruit and vegetable industry aims to exceed US$8 billion in turnover in 2025 by boosting exports of processed products.
The coffee industry is also set to benefit, with expected revenues reaching US$6 billion due to a global shortfall in coffee production in the 2024-2025 crop year, sustaining high coffee prices.
« This benefits not only farmers but also strengthens the Vietnamese coffee industry’s global standing, » stated Nguyen Nam Hai, Chairman of the Vietnam Coffee and Cocoa Association.
To achieve an export target of US$64-65 billion this year, the Ministry of Agriculture and Rural Development is implementing various strategies, including promoting high-tech agriculture, supporting businesses in enhancing processing and quality control, and expanding into new markets like the Middle East, Africa, and Latin America. Tax incentives and financial support are also being leveraged to foster investment in processed products and build international brands.
Experts from different associations acknowledge the significant challenges but remain optimistic about the agricultural sector’s potential to restructure and grow more robustly with the right policies, affirming Vietnam’s strength and position in the global market.
By Thi Ha – VnExpress.net – January 31, 2025