ASEAN

China resumes import of fresh fruits from Vietnam

CHINA has resumed the import of fresh fruits, including dragon fruit, from Vietnam through the Hekou-Kim Thanh border gate that lies south of the Chinese province of Yunnan.

The import ban was first imposed in mid-July after Yunnan detected Covid-19 on packages and trucks carrying dragon fruits from Vietnam.

The Vn Express reports that the resumption of customs clearance for fresh fruits and frozen goods through Hekou-Kim Thanh border gate in Lao Cai province will help reduce the congestion at Lang Son and Quang Ninh province border gates.

Customs clearance is only scheduled to resume after Jan 26 in Lang Son.

According to Vietnam's Customs, trade through Lao Cai accounted for nearly 35 per cent of Vietnam's total dragon fruit exports to China in 2020.

As the customs clearance at the Hekou-Kim Thanh border gate is still expected to be slower than usual due to the Covid-19 situation and the upcoming Lunar New Year, Vietnam's Industry and Trade Ministry proposed exporters to actively adjust the volume of goods transported.

The Express said that as of Wednesday morning, 1,721 trucks carrying Vietnamese goods, mainly fresh fruits, were still stranded at the border gates in Lang Son, down two-thirds from the numbers in early December 2021.

Deputy Prime Minister Le Van Thanh also asked businesses to have better measures to increase export of agricultural products to China through more official channels, instead of relying on border trade.

According to government statistics, Vietnam earned US$1.75 billion from exporting fruits and vegetables to China in the first 11 months of 2021, up 3.6 per cent year-on-year despite Covid-19 impacts.

China remained Vietnam's top fruits and vegetables export market with a market share of 54 per cent in the 11-month period.

Despite the sluggish customs clearance and frequent border gate closures, the Express reports that farm produce exporters still prefered the Chinese market due to its large intake volumes and less demanding quality control.

Nguyen Khac Huy, director of the Hoang Phat Fruit Company, said his firm was seeking different ways to export fruits to China, which is the second biggest economy and the world's most populous country.

"The total volume of goods we export to the European Union, Singapore, Japan and other markets in a whole year is sometimes equal to that exported to China in just two days," he said.

As neighbours, the freight costs is also much lower compared to other big export markets such as the United States, Japan and South Korea.

In addition, the Chinese market is considered easier compared to the Japanese or South Korean market in matters such as strict regulations on pesticide residues in imported fruits.

Vietnam Fruits Assocation General Secretary Dang Phuc Nguyen said the Chinese market was attractive due to four reasons.

First, the Chinese side buys Vietnamese farm produce at higher prices and the second is that the Chinese market does not require agricultural products' quality to be as high as those exported to Europe or the US.

Thirdly, China does not require modern post-harvest preservation of agricultural produce and fourth, the short distance ensures its freshness.

China is a multi-billion-dollar market not only for Vietnamese businesses, but also for other countries. Recently, Thailand, Myanmar, India, the US and other countries have been promoting exports to China.

Meanwhile, Chinese farmers are now intensifying cultivation of several crops, creating greater competition for Vietnamese products.

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