Economy

Vietnam's Fruit and Vegetable Exports Face Third Consecutive Month of Decline Amidst New Chinese Regulations

Decline in Exports

Vietnam's fruit and vegetable exports have seen a significant drop for the third month in a row, with January and February witnessing decreases of 5.2% and 6.5%, respectively.

Root Cause

The Vietnam Fruit and Vegetable Association points to reduced durian shipments as the primary cause, with China's new import regulations adding layers of complexity.

New Regulations

China now mandates testing for cadmium and auramine O residues in durian imports, substances linked to serious health risks, leading to delays and operational hurdles for exporters.

Impact on Exporters

Many exporters have paused shipments to comply with the new testing requirements, casting doubt on achieving this year's $8 billion export target.

Looking Ahead

Resolution of these inspection challenges is crucial for Vietnam to meet its export goals, following last year's success of $7.15 billion in exports, nearly half from durian alone.