Vietnam Needs Strategy to Develop the Coconut Industry

Vietnam needs a strategy to develop its coconut industry to capitalize on soaring global demand to expand export sustainably, according to a Viet Nam News report on May 09.  With more than 200,000 hectares of coconut plantations and an annual output of around two million tons, Vietnam ranks fifth in the world in terms of coconut production, the report said.  

Coconut exports also reached US$1.089 billion last year, from a modest baseline of $180 million in 2010.  Exports of fresh coconuts jumped by 18 per cent to $33.3 million in the first two months of this year, while processed coconut products soared 86 per cent to $43.8 million. The global demand is bringing significant opportunities for Vietnam to promote the coconut industry and position it as a pillar of the agricultural economy in 2025. 
 
However, the coconut industry is facing multiple challenges, including prolonged drought, saltwater intrusion and pest outbreaks that have badly affected yields in plantations, leading to a supply shortfall and price surges.  To seize the opportunity from rising coconut prices and global demand, Vietnam needs to develop a strategy for the coconut industry, with focus on developing strong brands for fresh coconuts, coconut milk and oil, cosmetics and handicrafts. Deep processing and product diversification will help increase the added value. 

Experts also said that it is necessary to develop plantation areas which meet stringent quality requirements of the US and the EU. Investments in post-harvest processing, technology, logistics infrastructure and supply chains for the coconut industry are critical.  In addition, Vietnam must proactively prepare for stricter international standards, especially from markets like the US and EU, and leverage trade agreements such as RCEP to expand exports.