Understanding mango import opportunities in mainland China and Hong Kong: Trends, patterns and implications

Abstract

Tropical fruits, specifically mango, make a significant contribution to Vietnam’s economy and nearly half are produced in the Mekong Delta region. Average annual net income per household from mango production is 105 million dong (US$4,900) and is much higher when compared with income received from rice production. Mango production offers a significant opportunity to alleviate poverty for smallholder farming communities. This study presents an analysis of China and Hong Kong as import markets for mangoes from Vietnam. There is limited in-depth knowledge regarding China’s mango market, including existing import regulations, growth trends, price dynamics, seasonal patterns, competition from different originating countries, and importer preferences. The contrasting market of Hong Kong was selected for analysis in order to provide a broader framework of data to enrich the study. In the southeast Asian context, Hong Kong is one of the main import markets for mangoes and serves as an important gateway to China. By examining these issues, this study provides an informed perspective on the challenges and opportunities facing Vietnamese mango exporters in accessing the Chinese and Hong Kong markets. The implications drawn from this study identify a number of issues and constraints that need to be examined and understood in greater depth. These include: Export mango supply from Vietnam to China and Hong Kong spreads across the whole year, peaking from September to December and not during the main harvest season, from April to June. Export trade with China is dominated by small, family-owned trading businesses sending truckloads across the border during peak harvesting months. Little is known of the volume and value of this informal trade. Cross-border exports are inherently unstable, with product flows and prices reflecting short-term and seasonal market conditions in both Vietnam and China. Quality versus price considerations is not fully understood in relation to Vietnam mango varieties, which are unfamiliar to buying agents in China and Hong Kong. This study concludes there are opportunities to export Vietnamese mangoes to mainland China and Hong Kong. Development activities should be focussed on refining target markets, building relationships, understanding export business practices and acknowledging the nexus between market demand and production supply to generate successful economic outcomes for smallholder farming communities in Vietnam.