Vietnam’s processing and preserving of fruits and vegetables increased by 118.4 percent in January compared to the 2019 baseline, according to Vietnam’s Industrial Production Index. However, this was lower than December 2024, when output stood at 140.6 percent above 2019 levels.
Month-on-month, production fell by 5.4 percent in January compared to December. Despite this, the sector recorded a 15.4 percent year-on-year increase from January 2024, reflecting strong annual growth.
Of note, Vietnam’s fruit and vegetable processing industry has become an important sector in the country’s agricultural and food processing landscape. With a favorable climate and abundant agricultural resources, Vietnam is one of the world’s leading producers of fruits and vegetables, making the processing of these products a significant part of the economy. The industry focuses on transforming raw produce into value-added products such as canned, frozen, dried, and juiced products, catering to both domestic and international markets.
Vietnam’s fruit and vegetable processing industry has seen rapid growth, driven by increasing demand from both domestic consumers and export markets. The country produces a wide variety of fruits and vegetables, including mangoes, pineapples, lychees, dragon fruit, sweet potatoes, and carrots, many of which are processed into products that can be sold year-round. The expansion of the middle class in Vietnam has led to higher demand for processed and packaged food products, and this has spurred growth in the fruit and vegetable processing sector.
The industry is particularly focused on the export of processed fruits and vegetables. Vietnam is one of the top exporters of frozen fruits, particularly dragon fruit and lychees, to major international markets such as the United States, Europe, and Japan. Canned and juiced fruits also represent significant export products, with companies processing large volumes of tropical fruits like pineapples, mangoes, and coconuts. Additionally, the growing demand for organic and health-focused products has led to the development of value-added processed products, such as dried fruit snacks and fruit juices with no added sugar.
In terms of domestic consumption, the processing of fruits and vegetables into ready-to-eat and convenient products has become increasingly popular, particularly in urban areas. Processed products such as canned vegetables, fruit juices, jams, and dried fruits are commonly consumed by Vietnamese households. The demand for processed fruits and vegetables is also driven by the rising trend of health-conscious eating and the convenience of ready-to-use products.
However, despite the growth of the industry, there are challenges to overcome. One of the key issues facing the sector is the lack of advanced processing technologies, which limits the ability of local producers to achieve high-quality standards and to compete with more developed countries. Additionally, the reliance on small-scale farms and fragmented supply chains can lead to inconsistencies in product quality and quantity. There are also environmental concerns related to waste management and the sustainability of processing methods, particularly with packaging and water use in production.
The Vietnamese government has taken steps to address some of these challenges, providing support for modernizing processing facilities, improving supply chain management, and encouraging the adoption of sustainable practices. There are also initiatives to help farmers improve product quality and increase the value-added potential of their produce through training programs and certifications.
See also: Food Processing Industry in Vietnam