In 2023, China emerged as the sole market to exhibit positive growth in Vietnam’s agricultural exports, contrasting with declines seen in other principal markets. Vietnam’s agricultural export revenue slightly dropped to $53.1 billion, a 1.2% decrease from the previous year, with China overtaking the US as Vietnam’s largest agricultural client. Exports to China surged by 17%, making up 23% of Vietnam’s total agricultural export revenue, while exports to the US fell by 16%.
China’s significant import of Vietnamese farm and seafood products, including a notable $12.2 billion in 2023, has become a major driver of Vietnam’s agricultural sector. A major highlight was the export of fresh durian, which reached a record $2.3 billion, 90% of which was attributed to the Chinese market. This demand has led to substantial profits for Vietnamese farmers, particularly in the durian sector.
China also accounted for a significant share of Vietnam’s exports in other commodities, including cassava, rubber, rice, cashew nuts, and coffee. With the Lunar New Year approaching, there’s a surge in farm produce transportation to border gates for export to China, signaling optimism for a boom in 2024.
Vietnam and China have entered into several protocols to facilitate the official opening of the Chinese market to more Vietnamese agricultural products. Upcoming agreements aim to expand exports, including a diverse range of farm produce. The recent authorization for seven Vietnamese salangane nest companies to export officially to China exemplifies this growing trade relationship.
Vietnamese exporters, anticipating a lucrative 2024, are actively pursuing the expansive Chinese market, buoyed by the increasing number of middle-income consumers. With strategic trade expansions and the potential for large-scale exports, Vietnam aims for significant growth in agricultural exports to China in the coming year.