CNA AGRIMEX VIETNAM

Investing in a frozen durian export facility requires five times the capital of a fresh durian packaging warehouse.

Frozen durian exports could increase output by about 30%, but investing in a frozen durian export facility requires five times the capital of a fresh durian packaging warehouse. Additionally, the standards for quality, food safety, and traceability must be met.

Experts believe that there are several challenges the Vietnamese frozen durian industry needs to recognize and prepare for, especially since the country’s technology in freezing durian is still limited. In particular, businesses argue that close collaboration with farmers and cooperatives is essential to create a healthy export environment.

There is still significant potential.

According to the Plant Protection Department (Ministry of Agriculture and Rural Development), frozen durian exports are an important step in agricultural trade relations between Vietnam and China. Seizing this opportunity, the Department has sent a letter to local authorities, requesting a review and compilation of durian growing regions and packaging facilities for frozen durian exports to China.

The letter outlines that frozen durian packaging facilities must meet requirements for food safety, packaging processes, traceability, and food safety control procedures. It also includes certain requirements regarding freezing capacity and cold storage for preservation.

Facing Numerous Challenges

Ms. Vu Ngoc Ha, General Director of Vusavi Joint Stock Company (CNA Agrimex), one of the businesses preparing to export frozen durian to China, believes that companies need to work more closely with independent inspection organizations to ensure product quality before export. This also includes staying updated with and complying with new regulations from both Vietnamese authorities and importing countries to avoid quality issues or non-compliance with standards.

"I believe the most important thing is to ensure transparency and traceability, as this will help prevent fraud and increase the credibility of Vietnamese durian in international markets," Ms. Ha said.

Ms. Ha also mentioned that businesses preparing to export frozen durian to China are still facing many challenges. The first of these is the high investment costs. Companies need to invest in advanced freezing systems, cold storage, and related equipment, which creates a significant financial burden, especially for small and medium-sized enterprises.

The freezing process for durian is also complex, as it requires strict adherence to time and temperature controls, demanding high precision and technical expertise. Businesses must train their workforce and monitor techniques to ensure effectiveness.

Another challenge is the rising operational costs. Maintaining low temperatures throughout transportation and storage requires energy and warehouse expenses, which can increase operating costs and impact product prices.

One less frequently mentioned issue is product loss. If the freezing process is not carried out according to standards, it could result in damaged products, leading to financial losses and damaging the company’s reputation in the market.

According to Ms. Ha, to achieve a stable market, the first step is to train farmers and update them on international market requirements for durian products, including quality standards, food safety, and traceability. This will help them understand the serious consequences of fraudulent practices.

The next step is for farmers and businesses to establish strong connections with companies. Additionally, agricultural cooperatives can play an important role in supervising production processes to prevent fraudulent activities.

Source: https://www.bsc.com.vn/

Frozen durian exports could increase output by about 30%. However, standardizing quality and food safety in accordance with China's requirements is the most critical bottleneck. Meeting these standards is essential for expanding official export channels, attracting foreign currency, and paving the way for other products to enter this market.

According to statistics from the Ministry of Agriculture and Rural Development, Vietnam's agricultural exports in the first nine months of this year reached $24.85 billion, a 27.7% increase. For instance, over 1.1 million tons of coffee were exported, generating more than $4 billion. Rice exports also approached $4 billion, while fruits and vegetables hit a record $4.8 billion. Notably, durian exports brought in $2.5 billion, surpassing the previous record of $2.24 billion set for the entire year of 2023.

Mr. Dang Phuc Nguyen, Secretary-General of the Vietnam Fruit and Vegetable Association, predicted that Vietnam's durian exports this year would undoubtedly exceed $3 billion. He noted that the Central Highlands provinces are entering the main harvest season in October. Meanwhile, off-season durian in the Mekong Delta provinces will be harvested in the year’s final months. This timing coincides with the end of the harvest seasons in competing countries such as Thailand and Malaysia, giving Vietnamese durian a significant price advantage. Currently, durian prices at the farm gate in growing regions range from 42,000 to 95,000 VND/kg, depending on the type. These price levels enable farmers to secure substantial profits from this crop.

However, challenges remain in the final months of the year. Representatives of businesses preparing to export frozen durian to China highlighted that the biggest obstacle is the high investment cost. Enterprises need to invest in advanced freezing systems, cold storage, and related equipment, posing a significant financial burden, particularly for small and medium-sized enterprises.

Ms. Vu Ngoc Ha, General Director of Vusavi Joint Stock Company (CNA Agrimex), highlighted that another challenge lies in the increasing operational costs.

Maintaining low temperatures throughout transportation and storage requires substantial energy and warehousing expenses, which can drive up operating costs and affect product prices.

According to the Plant Protection Department (Ministry of Agriculture and Rural Development), exporting frozen durian represents a significant milestone in agricultural trade relations between Vietnam and China.

This advancement is expected to create a breakthrough in durian export turnover in the near future.

“Standardizing quality and food safety in line with China’s requirements is the most critical bottleneck for official exports to attract foreign currency and create momentum for other products to enter this market,” emphasized Mr. Nguyen Quang Hieu, Deputy Director of the Plant Protection Department, during the recent "Conference on Export Regulations for Frozen Durian to the Chinese Market."

Providing detailed information on the stringent requirements of the protocol, Mr. Hieu explained:

Durian must be frozen at a temperature of -35°C or lower for at least 1 hour until the core temperature reaches -18°C or lower. The core temperature must then be maintained at -18°C or lower throughout the storage and transportation process in compliance with international food standards.

“Vietnam’s technological capability in frozen durian production is still limited,” Mr. Hieu noted. To build a strong brand, he emphasized the need for businesses to invest in advanced freezing systems, cold storage, and related equipment to meet international standards.

Source: https://doanhnhantrevietnam.vn/

Ms. Vu Ngoc Ha, General Director of Vusavi Joint Stock Company, one of the enterprises preparing to export frozen durian to China, stated:

“I believe that ensuring transparency and traceability is crucial to preventing fraud and increasing the credibility of Vietnamese durian in the international market.”

She emphasized that businesses need to work more closely with independent inspection organizations to ensure product quality before export. This also includes staying updated with and complying with new regulations from both Vietnamese authorities and importing countries to avoid quality or procedural issues.

After multiple rounds of negotiations, Vietnam and China agreed on a criterion for freezing durian at -18°C within one hour. The General Director of Vusavi remarked that this brings both advantages and challenges.

Advantages:

Preserving Product Quality:
"Freezing at -18°C helps maintain the quality, flavor, and nutritional value of durian, especially during long-distance transportation," she explained.
Extending Shelf Life:
The freezing process slows down ripening and spoilage, enabling businesses to store products for longer periods without worrying about deterioration, ensuring that durian reaches customers in optimal condition.

Ms. Ha also noted that this criterion aligns with international practices.

This not only facilitates Vietnamese durian's entry into the Chinese market but also meets the stringent requirements of international markets, enhancing competitiveness and expanding export opportunities, particularly in markets like the EU and the US.

Challenges:

The first challenge for Vietnamese enterprises in exporting frozen durian is the high investment cost. Companies must invest in advanced freezing systems, cold storage, and related equipment. This creates significant initial expenses, especially for small and medium-sized enterprises.

The process of freezing durian is also not simple, as it must strictly adhere to specific time and temperature requirements, demanding high precision and technical expertise.

Enterprises must train their workforce and monitor technical procedures closely to ensure efficiency.

Another challenge is the increase in operating costs.

Maintaining low temperatures throughout the transportation and storage process requires significant energy and warehouse expenses, which can raise operating costs and impact product prices.

An often overlooked issue is product loss.

If the freezing process is not conducted properly, it can lead to product damage, causing economic losses and harming the company’s reputation in the market.

Businesses planning to export frozen durian also highlight factors such as cold storage management, regular maintenance, product sorting, and warehouse organization.

According to Ms. Ha, to secure a stable market, the first step is to train farmers and update them on the international market's requirements for durian products. This includes quality standards, food safety, and traceability. It helps them understand the severe consequences of fraudulent practices.

Source: https://nongnghiep.vn/