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Chile aims to revive fruit exports to Vietnam

In order to revive exports of fresh Chilean fruit to the market in Vietnam, which has suspended its entry into this Asian market since 2015, last week a Chilean public-private delegation met with representatives of that country's phytosanitary body.

The national delegation was made up of Rodrigo Astete, head of the Agricultural and Forestry Protection Division of the Agricultural and Livestock Service (SAG); Juan Enrique Moya, Chile's Agronomist Attaché in Vietnam-Indonesia, Miguel Canala-Echeverria General Manager of the Association of Fruit Exporters of Chile AG (ASOEX), and Quang Neguhen, interpreter, who were received by Le Son Ha, Director Plant Quaratine Division of Vietnam and Dr. Ha Thanh Huong, Deputy Director of plant Quarantine Division.

"Currently, some fruits are suspended from entering the Vietnam market, as a result of a process to update phytosanitary requirements. Nevertheless, we believe that after having gained the entry of our table grapes in 2016, after a visit of experts from the Plant Protection Department (PPD) from Vietnam to Chile, we can continue to advance in opening this country for other Chilean fruits. Vietnam is an interesting market for our fresh fruit exports, as it has a large population and a strong young middle class, "said Miguel Canala-Echeverría, General Manager of ASOEX.

"During the 2014-2015 season, we exported more than 2,000 tons of fresh fruits to Vietnam, consisting mainly of table grapes, red apples, cherries and kiwis. Shipments that were showing an increase each season, and we hope to recover as soon as our fruit exports are normalized. "added Canala-Echeverría.

According to Rodrigo Astete from SAG, Chile is seeking to streamline the process of elaborating the entry protocols for apples, kiwis and cherries in the Vietnamese market. "After an extensive technical analysis of the situation of our apples, the PPD expressed its willingness to move as quickly as possible to finalize the regulatory process for this fruit before the end of the year. After that, they would continue with the kiwis, and after that the cherries, because, the Vietnamese phytosanitary authority works by species prioritization, "said Rodrigo Astete.

It is noteworthy that during the meeting the update of the protocol for the entry of Chilean Lilium bulbs also discussed, whose documentation, which includes Chilean observations, was sent on August 31 to the Ministry of Agriculture of Vietnam for approval.

The Vietnam Market
Vietnam has a population of around 90 million people, marked mainly by a young population, which implies a growing interest in the acquisition of new consumption trends in general, where temperate climate fruits such as the Chilean are a very good alternative.

According to a study by the ProChile Commercial Office in Ho Chi Mihn, over the last five years the growing presence of supermarkets and shopping centers has been growing, covering a portion that was previously supplied by traditional outdoor markets in urban areas. While the middle class or a new member buys at both the free trade shows and the supermarkets, it is important to note that the higher segments focus their shopping in supermarkets.

In the case of fresh fruit, 30% of it is marketed through "on trade" channels (boutique shops, restaurants and hotels of category and prestige), which are frequented mainly by consumers belonging to the upper-middle class and high Vietnamese, tourists and foreign residents. The remaining 70% of the commercialization is done through "off trade" channels (wholesale market, supermarkets and fruit stores).

However, with regard to the characteristics of consumers, it should be noted that 25% of the Vietnamese inhabitants (approximately 20 million) belong to the upper and middle upper middle class. In the middle class the approximate income fluctuates between 300 and 400 dollars per month, in the middle-high class they vary between 401 - 2,000 USD monthly and in the upper class, the income is more than 2,000 USD monthly. All these segments consume products imported over local products, either by fashion or by making a difference (status). According to the ProChile document, in such consumer niches the price has no relevance. "What's more, the more expensive the product, this can be synonymous with differentiation and preference for certain specific consumers," says the ProChile analysis.

Source: SimFRUIT

Publication date: 9/22/2017


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