Why does Vietnam import so much garlic when China dominates the global market?
Despite China dominating the global garlic trade, accounting for 72% of the USD 4.3 billion market in 2024, Vietnam remains a significant importer. This reliance on imports highlights a gap in domestic supply and competitiveness, even as the global market sees 2.9 million tons exchanged annually, with other countries like Spain, Argentina, and the Netherlands holding smaller shares.
On the import side, the largest markets were Indonesia, Malaysia, the United States, and Vietnam. Notably, Vietnam ranked 4th globally, importing USD 300.8 million worth of garlic (over 263,000 tons) at an average price of USD 1,141/ton.
Meanwhile, Vietnam’s garlic exports remained very limited: only USD 6 million, less than 0.1% of global market share. Moreover, Vietnam’s garlic export price was about USD 655/ton—among the lowest worldwide. This reflects a significant competitiveness gap compared to other countries and highlights Vietnam’s heavy dependence on imported supply.
How does Vietnam’s onion import market compare to global leaders like the Netherlands?
While the Netherlands leads the diversified global onion market with nearly 20% share of the USD 5 billion trade in 2024, Vietnam is also a significant importer. This contrasts with the more concentrated garlic market, as 9.8 million tons of onions are exported globally, with other key players including China, Mexico, India, the US, Pakistan, and Spain.
On the import side, the United States was the largest market (USD 521 million), followed by the UK, Malaysia, Canada, and Germany. Vietnam was also among the significant importers, with USD 163 million (about 316,000 tons) at an average price of USD 515/ton. However, Vietnam’s onion imports have been sharply declining: down 5% annually between 2020–2024, and down as much as 37% from 2023 to 2024.
What opportunities exist for Vietnamese garlic and onion farmers to reduce import reliance?
Significant opportunities exist for Vietnamese garlic and onion farmers to reduce import reliance, given the immense domestic demand. Vietnam annually imports approximately USD 301 million worth of garlic (around 264,000 tons) and USD 163 million worth of onions (about 317,000 tons). By focusing on replacing even a portion of these imports, farmers and enterprises can unlock substantial growth potential without immediately targeting exports. The primary strategy involves stabilizing domestic supply, reducing import dependency, standardizing quality, and achieving cost reductions through economies of scale, ultimately reclaiming market share in wholesale markets, supermarkets, industrial kitchens, and the processing industry.
For garlic, a two-tier approach is feasible: (1) expand mass garlic production in suitable regions to substitute imports for general consumption; (2) upgrade regional speciality garlic (Ly Son, Kinh Mon, Phan Rang) into premium segments with traceability, proper packaging, and brand protection. Once the domestic market is secured, niche export opportunities can be explored, such as processed and speciality products (black garlic, single-bulb garlic, dried garlic, garlic powder). Alongside improving seed quality, cultivation practices, and storage systems is crucial, as these bottlenecks currently inflate costs and cause significant post-harvest losses. FAO and multiple studies confirm that post-harvest losses in onions and garlic can be very high without proper drying and storage techniques, which increases costs and reduces quality.
For onions, 2024 data shows Vietnam’s imports are decreasing sharply—an opportunity to boost domestic production and replace imports in major consumption channels. Key areas such as Vinh Chau (Soc Trang) have successfully applied preservation technologies (curing, cold storage, sprout-inhibitor treatment) to reduce post-harvest losses and extend supply, making them well-suited to capture modern retail and long-term contracts. Once the domestic chain is stabilised, Vietnam could target niche exports to ASEAN and the Middle East with speciality purple onions and processed onion products.
How can Vietnam achieve independence in its garlic and onion markets?
Vietnam’s garlic and onion import figures reveal a paradox: despite favourable natural conditions and famous speciality varieties, the domestic market is still dominated by foreign products. To reverse this, Vietnam should adopt a “domestic-first, export-later” strategy: focus on organising large-scale production, standardising quality, reducing post-harvest losses, protecting regional brands, and strengthening processing to create added value. Only when the domestic market is firmly consolidated can Vietnamese farmers and enterprises confidently step into the global arena, unlocking sustainable export potential for these two essential products that are part of daily meals for billions of people worldwide.
See more: Vietnam’s agricultural processing industry on the way to development
