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28 December 2024

VINAFRUIT Sounds Alarm Over Durian Export Fraud

Illegal replication of durian codes threatens Việt Nam's agricultural reputation amid record export growth.

The Việt Nam Fruit and Vegetable Association (VINAFRUIT) has raised alarms over unauthorized practices threatening the integrity of the country’s lucrative durian trade. The association recently highlighted fraudulent activities concerning the illegal replication and misuse of planting area and packaging facility codes necessary for exporting durians to China, the product’s primary market.

This alarming trend involves the use of unauthorized contracts, counterfeit stamps, and forged signatures, which aim to bypass regulatory inspections—a move seen as detrimental to the reputational integrity of Việt Nam’s durian industry. The damage posed by these violations extends to both legitimate producers and exporters.

Đặng Phúc Nguyên, General Secretary of VINAFRUIT, emphasized the potential fallout from the fraudulent actions. “Importing countries may tighten inspections on Vietnamese durians, and there is a risk China could revoke granted codes due to quality violations,” he warned. Such repercussions could lead to significant financial losses not only for exporters but also for the broader Vietnamese economy, which heavily relies on the agricultural sector.

Despite these challenges, the durian market has shown remarkable resilience. By the end of November 2023, Việt Nam’s durian exports surged to approximately US$3.13 billion—a commendable 44% increase year-on-year. This growth has helped propel the fruit and vegetable sector's total export revenue to over US$7.2 billion this year, securing Việt Nam's position as a key player in the global agricultural export market.

China stands out as the dominant buyer, accounting for over 90% of Việt Nam’s durian exports valued at around $2.8 billion. The significance of maintaining the quality and integrity of these exports cannot be overstated; as such, VINAFRUIT has called for heightened monitoring and inspections of packaging and exporting facilities.

The association has urged local authorities to impose severe penalties on offenders caught engaging in such fraudulent practices. Publicizing violating businesses is part of VINAFRUIT's strategy to deter misconduct and restore trust among domestic producers and international consumers alike. Enhanced collaboration with import authorities is also recommended to tackle commercial fraud effectively.

While illegal activities threaten to overshadow legitimate operations, it’s important to recognize the buoyant state of the durian export market. The reaching of $3.13 billion within just eleven months is no small feat, underscoring the potential for growth within regulated practices. The Vietnamese government and industry leaders must work collaboratively to bolster regulatory frameworks and secure the durian industry’s reputation globally.

On another front within international trade, the banana export sector is grappling with its share of challenges. The Banana Exporters Association noted logistical issues as pertinent factors hindering improved performance. The Ecuadorian Banana Exporters Association (AEBE) reported totals of 330.9 million boxes of bananas exported as of November 2024, marking only slight increases from the prior year.

Notably, there has been reduced demand from Russia and the Middle East, with declines of over 13% and 6% respectively. Conversely, export figures to the United States jumped sharply by over 27%, showing potential for recovery as larger markets present opportunities for growth.

Despite the successes, logistical conditions, such as severe congestion on global routes like the Suez Canal, present persistent challenges. High demand for containers and competition from other agricultural products, especially fruits from Chile, complicate the overall export scenario.

At the national level, adverse climatic conditions have hampered banana supply, with provinces like El Oro and Guayas facing production deficiencies. Still, certain companies have managed to thrive. Companies such as Ubesa and Interbananaexport reported substantial increases, effectively placing their limited supply within key market channels.

Meanwhile, on the macroeconomic front, Iran recently declared significant trade achievements with Turkey, exporting non-oil goods valued at approximately $4.4 billion during the first eight months of the current Iranian calendar year. The cooperative dynamic between the two nations, recognized for their shared historical and cultural foundations, demonstrates the potential for bolstered trade ties moving forward.

Iran’s Minister of Industry, Mining, and Trade, Mohammad Atabak, accentuated the necessity for preferential trade agreements to facilitate smoother trade operations, again underlining the desire for cooperative frameworks to optimize exchanges across borders.

Both Iranian and Turkish officials are optimistic about increasing bilateral trade potential, contemplating extensive collaborations across sectors including tourism, textiles, and pharmaceuticals. Such initiatives showcase the trade dynamics currently shaping international relations, accentuating the need for efficient regulatory practices, and increased cross-border cooperation.

Through continuous engagement between nations, efforts such as tariff barrier removal and exploration of new economic contemplations could potentially transform these markets. Iran’s readiness for expanded cooperation with Turkey highlights the significance of mutual contributions from both economies to achieve growth and stability.

The narratives surrounding Việt Nam’s durian industry, Ecuador's banana exports, and Iran's trade with Turkey encapsulate the broader theme of international trade and the inevitable challenges faced by nations. Each example underlines the requisite balance between operational efficiencies, regulatory integrity, and strategic international partnerships, establishing the foundation for sustainable growth within the global marketplace.

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