4 product groups form the billion-dollar coconut export industry

In 2024, Vietnam's coconut export turnover reached $1.089 billion USD across four main product groups. The first group, encompassing food, cosmetics, and pharmaceuticals, contributed 43% of total exports ($470 million USD). This group includes over 45 diverse products and more than 50 deep-processing enterprises. The second group comprises handicrafts, wood, and agricultural substrates, contributing 23% ($246 million USD). This group consists of over 30 product types, with around 15 enterprises directly involved in production and export. The third group focuses on raw materials like crude coconut oil and frozen coconut products. With 5 domestic and 14 foreign direct investment enterprises, this group contributes 18% ($198 million USD) to the total export value. Finally, fresh coconut exports accounted for 16% ($175 million USD), with 5 out of 16 available varieties currently exported. Although the export figures are impressive, challenges remain, including raw material shortages and increased competition from countries like Thailand, India, and China. The rising price of raw coconuts, while beneficial for farmers, poses challenges for Vietnamese processors facing international competition. To ensure sustainable growth, Vietnam's coconut industry needs to prioritize deep processing, reduce raw material exports, attract foreign investment, and develop strong brands.