Vietnam has enjoyed abundant sunshine and rainfall in 2018, and the watermelon production increased as a result of these conditions. This is precisely the time when Chinese buyers visit Vietnam to purchase large volumes of watermelons, but this year their number was small.
Vietnam's watermelons accounted for 93%-98% of Chinese watermelon imports in the last 10 years, and this number grows every year. However, Laos implemented a policy in 2017 that made it attractive for foreign investment, and many Chinese traders have turned their attention to Laos instead of Vietnam. Chinese traders rent land and plant watermelons. Labor costs are low in Laos, the investment policy is attractive, and land rent is also low. This has attracted many Chinese traders.
Watermelon trade market
Vietnam is attempting to solve the stagnant watermelon trade. The price of watermelon has dropped from 0.56 yuan [0.09 USD] per kg to 0.41 yuan [0.06 USD] per kg.
Source: Fresh Stories
