Fruits and Vegetables

General information

The fruit industry has achieved impressive results in agricultural sector of Vietnam. Export turnover of vegetables and fruits will reach USD 3.6 billion in 2017, accounting for more than 10% of export value of agriculture, forestry and fishery. In 2017, the export turnover of agro-forestry and fisheries products increased by USD 4.2 billion compared to 2016, the fruit and vegetable sector increased by USD 929 million. Vegetables and fruits have passed the coffee, rice, and rubber to become one of the key export sectors of Vietnam. The average export growth rate is 27% per year for the period 2007 - 2017. Vietnam fruits and vegetables have been exported to many markets in the world, including 10 biggest markets, over 20 million USD, including China (70.8% of the market share), United States (3.4%), South Korea (3.4%), Japan (3.1%), followed by the Netherlands, Malaysia and Taiwan Loan, Thailand, Singapore and Australia (2.2 to 1.1% respectively).

However, Vietnam's horticulture sector still has many bottlenecks, problems in production, processing and market. Small scale occupies a high proportion, large scale production areas are gradually formed but still rely on small and scattered farmers, which makes it difficult for investment, quality control and consumption. The area of ​​vegetables and fruits has increased rapidly, but there is no planning, production linkages are weak, product quality is not high, high production cost and  big loss. Post-harvest preservation and technologies have been improved and little attention has been paid in the field of fruit and vegetable processing. The products are only in semi-processing or there is almost no deep-processing. Vietnam's vegetable market is heavily dependent on China. The issue of food hygiene and safety is quite serious both in domestic and export markets.

a) Organization and objectives:

PPP TF on Fruits and Vegetables, chaired by Pepsico / Syngenta / Bungee and Department of Crop Production. The group's activities focus on the resources of its partners to develop Vietnam's horticulture industry and pursue the common goal of 20-20-20, increasing output, income for farmers, creating more jobs and reducing emissions. The TF has worked with government agencies and NGOs to help smallholders implement Good Agriculture Practices (GAP), initially focusing on growing potatoes in the provinces like Lam Dong (in the South), Hai Duong, Bac Giang, Vinh Phuc and Ha Noi (in the North), to expand to other vegetables and fruits for sustainable development of the industry.

b) Key outcomes:

PPP activities mainly focus on potatoes made by PepsiCo Vietnam. Over time, the potato production model has gained much success in terms of increasing productivity and income for farmers. Specifically:

- PepsiCo Vietnam's potato project helped increase productivity by 2.2 times compared to 2011, increased net profit by 6.5 times (equivalent to VND 65 million), increased the number of cooperative farmers to 500 farmers and the planted area to 4.5 times.

- Implement a spray irrigation model, saving over 1 million cubic meters of water.

- Train more than 1.6 million farmers on sustainable production.

- Put in 5 new varieties and sign contracts with about 1,000 farmers.

Fruits and Vegetables PPP Task Force Leader
No. Fullname Organization 
1 Lê Văn Đức Department of Crop Production
2 Lê Thị Khánh Hòa Syngenta
3 Nguyễn Phúc Trai PepsiCo

Task Forces