Exports of all coconut products surged 20% to nearly $1.1 billion, according to Vietnam Customs. Fresh coconuts alone jumped 61% to $390 million.

Vietnam has 200,000 hectares of coconut farm which produce 2 million tons a year. A third of it meets organic standards of the U.S. and Europe.

There are over 600 coconut producing and processing companies.

Vietnam ranks fifth globally in coconut exports.

China bought 25% of Vietnam’s coconuts, partly because of a protocol on fresh coconut signed in August last year.

Vietnam is now the third biggest coconut supplier to China with a 20% market share.

Other large export markets include the E.U. the U.S., Canada and South Korea.

Supply, however, is likely to be inadequate in upcoming years as farmers have been reluctant to expand their farms in recent years.

Competition with other exporters such as Thailand, India and countries in the Middle East, and the expansion of processing factories in China, also add difficulties to Vietnamese companies, said Cao Ba Dang Khoa, General Secretary of the Vietnam Coconut Association.

He urged the government to negotiate with China so it would add more farming areas in Vietnam to its list of approved locations for shipment.

Source: Vnexpress