Thailand imported durian from Vietnam. What happened?
Thailand’s sorrow amid the ascension of Vietnam’s durian export
Vietnam’s Tuoitre newspaper reported that Thailand paid 97 million USD to import fruit and vegetables from Vietnam. At the top of the import list is durian.
That was unthinkable in the past!
Thailand used to have all of China’s durian imports up until 2021 but dropped to 61% in 2023, according to another Vietnamese paper. Vietnam’s fresh durian export to China, starting from July 2022, was the reason for the drop. Favorable weather, large plantations, proximity, and year-round harvest of durian were major advantages that have so far powered Vietnam’s ascension on the durian power scale.
“One’s own sorrow” — The Thai origin of Durian in Vietnam
It was said that the Vietnamese did not grow durian until the early 19th century. A former Tay Son soldier, escaping revengeful punishment of the new Nguyen Dynasty, moved to Thailand where he married and settled. Years later, when his wife passed away, he returned to Vietnam carrying the Thureīyn fruit along with a sad longing for his wife. When he died, the villagers called that fruit “One’s own sorrow” as their remembrance of the faithful man who planted the first durian in Vietnam.
Vietnam’s durian export to China
Starting in July 2022, Vietnam’s durian growers can officially export their produce to China. Since then, the export volume and value just kept increasing.
- In October 2022, two months after the first official export, Vietnam’s export of durian to China rose 4,000% reaching 50 million USD.
- In May 2023, the export value increased to 477 million USD.
- In December 2023, this value increased to a staggering 2.1 billion USD.
- In April 2024, Vietnam surpassed Thailand in durian export to China, controlling 57% Chinese market with a total value of 161 million USD compared to Thailand’s 120 million USD.
Thailand’s disposition in the early months of 2024 was mainly due to Vietnam’s ability to grow durian in the off-season months. However, it was part of a worrying trend for Thailand’s exports amid Vietnam’s strong rise.
Thai-Laos-China train network
The opening of the high-speed China-Laos train network gave Thailand exporters hope. Some estimate this transportation mode could cut transportation duration by half, from 8 or 10 days to 4, and reduce spoilage and waste.
Thai Government sped up plans to build a 9.3 billion USD Thailand-Laos high-speed train by 2030 to connect Thailand farmers to the Chinese market.
However, Vietnam is not sitting idle with increasing investment in this transportation option reflecting the country’s commitment to improve its logistic infrastructure. The current Prime Minister of Vietnam is highly vocal about the country’s achieving the targeted 3,000 km of highway by the end of 2025. A plan to upgrade its freight train network to China is also in motion. It’s only a matter of time before the two countries come up with a concrete plan for direct high-speed train connectivity.
Malaysia to export fresh durian to China
Malaysia until recently only exported frozen durian to China. But that will soon change following the signing of a memorandum during the Chinese Premier's visit to Malaysia on June 2024 allowing the country to export fresh durian to China.
Given the similar geographic location between Thailand and Malaysia, neither has an upper hand in terms of logistics. Compared to Vietnam, both would take longer to move their harvest to China.
The introduction of Malaysia to the Chinese market, thus, would certainly increase competition at a likely bigger loss by Thailand rather than Vietnam.
While the future may look cloudy for Thai durian growers, they haven’t lost yet. While I have no solution to offer, I believe Thailand, Vietnam, and Malaysia will eventually reach an equilibrium state. The ones who gain the most, so far, are the Chinese consumers who will continue enjoying more varieties and year-round supplies of the King fruit from their Southeast Asian neighbors.
