China's New Quality Standards Impact Vietnam's Exports

Recent changes in China's import regulations, specifically the requirement for testing of a potentially carcinogenic chemical known as auramine O, have led to significant disruptions in Vietnam's fruit and vegetable exports. This development has particularly affected the durian market, with many shipments being held up at customs.

The introduction of these stringent measures follows the detection of the chemical in several Thai durian shipments towards the end of 2024. As a result, Vietnamese exporters are facing challenges, with some having to redirect their durian shipments to the domestic market, selling them at reduced prices, and others temporarily halting exports to China.

Efforts to Overcome Export Hurdles

Businesses are now undergoing the required tests at the nine centers in Vietnam recognized by China. However, the limited number of testing centers has raised concerns about potential bottlenecks, especially during peak export periods. An executive from an export company in Tien Giang province emphasized the need for more testing centers to facilitate smoother trade operations.

Impact on Export Targets and Market Diversification

Dang Phuc Nguyen, the general secretary of the Vietnam Fruit and Vegetable Association, has warned that the current inspection hurdles could prevent the sector from reaching this year's export target of $8 billion. Additionally, other markets like the U.S. and the EU have also raised their import standards, further complicating the export landscape for Vietnamese producers.

Looking Ahead

Despite these challenges, Vietnam's fruit and vegetable exports reached a record $7.15 billion in 2024, marking a 27.6% increase from the previous year. The Ministry of Industry and Trade suggests that collaboration among farmers, cooperatives, and businesses is crucial for improving product quality and enhancing the global presence of Vietnamese brands.