The price of fruit exported to the EU increased by 25%

Strong increase in quality

According to the European Statistical Office (EUROSTAT), Vietnam is the fifth largest fruit exporter to the EU in the first quarter of 2021. Total fruit exports reached 1.49 thousand tonnes, worth EUR 9 million, down 9.6% in volume, and up 12.7% in value over the same period in 2020.

The average price of Vietnamese fruit in the EU is EUR 6,067.1 per tonne, up 24.8% over the same period in 2020. However, Vietnam's market share of fruit exports to the EU decreased by 0.2% compared to the same period last year.

Compared with other exporting countries to the EU, Vietnam's fruit prices are high. The European Statistical Office said that the average price of fruit exported to the EU in the first quarter of 2021 was EUR 3,661.8 per tonne.

The Netherlands, the largest fruit exporter to the EU, only reached an average price of EUR 3,762.4 per tonne in the first quarter of 2021, increasing 20% over the same period in 2020. Total fruit output from the Netherlands exports in the EU in the first quarter of 2021 was 4,480 tonnes, worth EUR 16.86 million.

Following the Netherlands is the Netherlands are Colombia, South Africa, Belgium, and Vietnam, respectively.
Vietnam's fruit exports to the EU are mainly fresh, including tamarind, apple, jackfruit, litchi, plum, and passion fruit. Passion fruit is the key product, accounting for 97.9% of the total export value of fruits.

Lychee is a fruit with great export potential and has many development fiscal spaces in the EU market. In early June 2021, the first batch of Vietnamese lychees from Luc Ngan district, Bac Giang province, was officially exported to the EU under the EU–Vietnam Free Trade Agreement (EVFTA).

According to the Dutch Organization for Import Support from Developing Countries, lychee is a fruit that is gradually gaining popularity in the EU, despite the low per capita consumption.

The total EU litchi market size is estimated at 20,000 to 25,000 tons annually. Currently, Madagascar and South Africa are the two main litchi exporters to the EU.

The export time is winter, from October to February. Because litchi supply in summer is less so Vietnam can exploit the gap in fresh lychee supply from March to July and September to November.

Selling via e-commerce platforms

According to the Council of Europe, if traders want to sell goods online into the EU, they must register their business in the EU's member. Sellers or e-commerce platforms must collect VAT from the customers. This means that sellers must know the VAT of the country's customers.

For goods worth several tens of EUR, the corresponding VAT is a few EUR, but the post office VAT declaration fee is up to more than EUR 10. If calculated on the value of the goods, this fee is very significant. As a result, many customers refuse to receive or return products.

According to the European-American Market Department, Ministry of Industry and Trade, e-commerce transactions from Vietnam to the EU are still very primitive. However, Vietnamese businesses have had initial successes in building e-commerce business models.

Recently, the first 3 tonnes of lychee were imported to Germany through the Voso E-commerce Platform. This cooperation program is between the Department of E-Commerce and Digital Economy - Ministry of Industry and Trade, Voso E-commerce Platform, and Viettel Post Corporation (Viettel Post).

The upcoming purchases and sales of goods on e-commerce platforms between Vietnam and the EU will be exempt from import tax if the goods' value is less than EUR 150. Suppliers will be fully responsible for their goods to EU consumers under EU consumer protection regulations.