Vietnam Dragon Fruit: Gradually Regaining Global Leadership

From a global perspective, Asia is the leading hub for dragon fruit production, contributing 93% of the world's total output. Vietnam alone holds 51% of the global market share, with an average annual production of 1.2 million tons, making it the country with the largest dragon fruit cultivation area worldwide until China surpassed it in 2021. Currently, 80-85% of Vietnam's dragon fruit is produced for export, with China being the primary market, accounting for over 80% of the total export turnover in 2022.
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Where is Vietnamese dragon fruit grown the most?

Dragon fruit is mainly cultivated in provinces such as Binh Thuan, which accounts for 50.73% of the nation’s planting area, followed by Tien Giang (16.42%) and Long An (15.15%). The white-fleshed variety is predominantly grown in Binh Thuan, covering about 55% of the area. In contrast, the red-fleshed variety is mostly cultivated in Tien Giang and Long An, covering 40% of the total planting area.Chau Thanh District in Long An Province is widely recognized as a top-quality dragon fruit growing area in Vietnam, with a cultivation area of 6,800 hectares, where 100% of the output is red-fleshed dragon fruit. Chau Thanh’s dragon fruit is characterized by its sweet pink skin, vibrant green shoots, and sweet taste, all produced in compliance with VietGAP and GlobalGAP standards. The route from Chau Thanh, Long An to Cho Gao, Tien Giang, is often referred to as the “dragon fruit export highway” due to the presence of hundreds of businesses. Each day, hundreds of trucks and containers transport red-fleshed dragon fruit to international markets, particularly in China.

Long An Province, and especially Chau Thanh, has set a target of achieving 6,000 hectares of high-tech dragon fruit cultivation by the end of 2025. As of July 2024, the area has already reached 5,700 hectares. This progress highlights the determination of Long An farmers to preserve the fruit that has significantly improved their livelihoods, while also creating opportunities to expand export markets and avoid the sharp decline witnessed during 2022 and 2023.

See more: Comparison of Vietnam dragon fruit varieties

Challenges of Vietnamese Dragon Fruit

The year 2017 was a pivotal moment for Vietnamese dragon fruit, as exports exceeded $1 billion for the first time. This strong position was maintained from 2017 to 2021, but by 2022 and 2023, export turnover dropped sharply by 50%, to just over $600 million.
The decline can be attributed to several factors. First, the global trend during this period saw countries limiting imports due to the complex challenges posed by COVID-19. Furthermore, in 2021, China successfully produced 1.6 million tons of dragon fruit annually, becoming the country with the world’s largest dragon fruit cultivation area. As China began to meet its own domestic demand, it reduced dragon fruit imports by 25% over the past three years, significantly impacting the export volumes of other producing countries.

Understand the strength of Dragon fruit in Vietnam by this article: Import Dragon Fruit from Vietnam. A Guide for International Buyers

What countries are Vietnamese dragon fruit exported to?

Vietnam is currently one of the leading countries in Asia in terms of dragon fruit cultivation area and output. Vietnamese dragon fruit is exported to 40 countries and territories, with the main consumer markets being in Asia. China remains the largest and most traditional market, followed by Singapore, Hong Kong (China), and Indonesia. In recent years, Vietnam has also entered new high-potential markets, such as Japan, South Korea, the EU, the United States, and Australia.
According to data from the General Department of Customs, the export turnover for all forms of dragon fruit (including fresh, frozen, dried, and juice) is projected to continue declining in 2024, extending the downturn that began in 2023. In the first half of 2024, dragon fruit exports totalled $298.4 million, a 13.5% decrease compared to the same period in 2023. China, the most affected market, saw a 26% drop in revenue, totalling $203 million in the first half of 2024. Since China accounts for 70% of Vietnam’s dragon fruit export turnover, this reduction had a significant impact on the overall export figures.
However, there are some positive developments in other areas. One highlight is the sharp increase in processed dragon fruit exports. In the first six months of 2024, Vietnam’s dried dragon fruit exports reached $6.3 million, an astonishing rise of nearly 6,000% compared to last year. Moreover, while exports to China continue to decline, other markets have shown notable growth.

India saw a 35% increase, the US 89%, South Korea 36%, and the UAE 59%, signalling a more promising future for Vietnam’s dragon fruit exports in the coming years. Notably, the US, the world’s second-largest dragon fruit importer, has steadily increased its imports, even as China has reduced its purchases. Over the last three years, US imports of dragon fruit have risen by 43.6%.

India, with its 1.3 billion population, is another key market. Over the past five years, Vietnamese dragon fruit exports to India have grown tenfold, from $1 million in 2015 to $10 million in 2020, and continue to rise. Vietnam now accounts for 52% of India’s total dragon fruit imports. Indian consumers have developed a strong preference for dragon fruit, with import volumes increasing by 358% over the last three years, making India the country with the highest growth rate in dragon fruit imports worldwide.

Investing in Quality

Vietnam possesses significant advantages in terms of land and climate, which are ideal for dragon fruit cultivation. Additionally, the country benefits from the ability to extend the harvest season through the use of lighting techniques. By promoting off-season production, Vietnamese dragon fruit can now be harvested year-round. The peak harvest season runs from April to September, while the off-season stretches from October to February or March of the following year. This extended harvesting capability provides a competitive edge for Vietnamese dragon fruit in the global market, supporting the potential for increased export value in the coming years.

Binh Thuan Province, one of the largest dragon fruit-producing regions in Vietnam, covers 27,000 hectares with an annual output of approximately 550,000 tons. Currently, Binh Thuan has 653 coded dragon fruit growing areas and around 325 packaging facilities with codes. This proactive approach to coding for both growing areas and packaging facilities helps farmers and businesses enhance their awareness of food safety and plant quarantine standards. It also strengthens production supervision, ensuring compliance with proper processes, which stabilizes product quality and builds trust with importing countries.

CONCLUSION

Vietnam remains a global leader in dragon fruit production, leveraging its natural advantages in land and climate to maintain a strong presence in international markets. Despite facing challenges such as declining exports to China and the impact of COVID-19, Vietnam continues to expand its export reach to new markets like the U.S., India, South Korea, and the UAE. Thanks to advanced cultivation techniques, the country’s ability to produce dragon fruit year-round offers a competitive advantage that supports the future growth of export value.

Key provinces like Binh Thuan and Long An are actively investing in quality control through the implementation of growing area and packaging codes, ensuring consistent product standards that meet the requirements of global importers. With efforts to expand high-tech cultivation and diversify export markets, Vietnam is poised to strengthen its position as a top dragon fruit exporter. However, continuous improvements in product quality and adherence to global standards will be critical for maintaining this leadership amidst increasing competition and shifting market dynamics.

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