16:58 | 11/07/2016 Trade
(VEN) - Earning nearly VND3 trillion from litchi sales in 2015, Bac Giang Province is promoting exports to major markets in order to increase the export value of this product.
Reducing volume, increasing value
Bac Giang Province People’s Committee Vice Chairman Duong Van Thai said litchi plantations in the province currently totaled 30,000ha, down 1,000ha compared with 2015 due to crop restructuring. This year’s litchi output is predicted to reach 130,000 tonnes, down 65,000 tonnes compared with 2015.
Despite a decrease in output, Thai predicted the export value would not fall because the US had granted 15 litchi growing area codes to more than 200 households in Luc Ngan District. These households have planted litchis on 158ha according to GlobalGap standards under strict supervision. With output expected to reach about 1,000 tonnes, these litchis are eligible to be exported to the US, Australia, and the EU. Litchi growing areas meeting VietGap standards totals 12,560ha with output expected to reach 53,000 tonnes.
The quality of this year’s litchis is higher compared with previous years. Farmers have improved their harvesting and preservation skills.
Promoting exports to new markets
Last year Bac Giang’s litchi sales totaled VND2.9 trillion with domestic sales accounting for 55 percent and exports 45 percent. The province for the first time exported fresh litchis to hard-to-please markets such as the US, Australia, France, the UK, Japan, and Malaysia.
Bac Giang Industry and Trade Department Director Tran Quang Tan said exports were expected to account for 40 percent of total litchi sales this year, down five percent compared with 2015, explaining that businesses decided to reduce exports to China and concentrate on domestic sales and exports to new markets such as the UK, the US, and France.
This decision was aimed at preventing the dependence on just one market and enhancing the value of Vietnamese litchis through promoting exports to harder-to-please markets.
Right from the beginning of this year’s litchi season, the Thanh Binh Jeune Co., Ltd., the Phong Son Tiem Co., Ltd, and the Teanda Import, Export Joint Stock Company had signed contracts to buy about 1,000 tonnes of Bac Giang’s litchis for export to the US, Australia, France, and the EU.
Tran Thanh Hai, Deputy Director of the Agency for Foreign Trade under the Ministry of Industry and Trade, said that in the near future fresh and processed litchis would be added to the National Branding Program and National Trade Promotion Program in order to increase their export value and promote litchi exports to large markets.
The Ministry of Industry and Trade has requested Vietnamese trade offices and their branches to research about the consumer demand for litchis in foreign countries and increase contacts with businesses, organizations, and local authorities in order to seek export opportunities for Vietnamese litchis.