TT Meridian Company has regularly imported 3-4 tonnes of Vietnamese durian every week. (Photo:VNA)
Since the first batch of Vietnam’s Ri6 durian was officiallyexported to the UK in May, TT Meridian Company has regularly imported 3-4tonnes of this speciality fruit every week, demonstrating the high demand forthis fruit in the UK market.
Having spent many years researching Vietnam's fruits with exportpotential to the UK market, TT Meridian, a company specialising in thedistribution of Vietnamese agricultural products in the UK, sees bright exportprospects for Vietnamese durian in this market.
Thai Tran, Managing Director of TT Meridian, stated that with thepreferential tax of zero under the UKVFTA, Vietnamese durian imported into theUK has a competitive price advantage compared to durian products from othercountries, which are subject to an 8% tax rate. This is especially significantin a context where high inflation makes price a top concern for importers,distributors, and consumers in the UK.
According to him, the UK market comprises many customer segments,and Vietnamese durian can target Asian customers as well as manufacturers andprocessors of durian products like ice cream, yoghurt, and smoothies. Theadvantage in price also provides an opportunity for this type of Vietnamesefruit to reach UK consumers and distributors.
However, he also highlighted several challenges for Vietnamesedurian in gaining market share in this competitive market.
One challenge for durian exporters is the procedure to obtain acertificate of origin from the Vietnamese authorities for durians exported tothe UK. To benefit from tax incentives under the UKVFTA, businesses currentlyface a time-consuming and costly process as they have to directly apply for apaper certificate of origin. As a solution, he proposed the introduction ofelectronic certificates with online transactions.
Echoing this sentiment, Vietnamese Trade Counsellor in the UK NguyenCanh Cuong suggested state managementagencies assist businesses by reducing the total time required for quarantine,issuance of the certificate of origin, and customs clearance to half a day,allowing products to be loaded onto flights the same day.
Another challenge for durian importers is ensuring consistentproduct quality. Thai Tran noted that a lack of quality consistency in durianimported into the UK could hamper the establishment of trust, a vital elementin forging long-term partnerships with distributors, wholesalers, and retailersin the UK.
He emphasised that Vietnam's durian producers and exporters mustadopt scientific production methods and preservation technologies to guaranteeproduct quality consistency if they hope to boost exports to this market.
Thai Tran further pointed out that high costs related totransportation, logistics, and the intermediary stage also pose challenges. Thefreight charge for transporting Vietnamese durian to the UK, making up asignificant portion of the product price, is 1 USD per kilo more than that ofdurians from countries like China, Malaysia, or Thailand.
Furthermore, the logistics and intermediary costs aresubstantially high, driving up the selling price of Vietnamese durian toconsumers even when the purchase price at source is competitive.
He advised that Vietnamese businesses should strive to reduceintermediary costs and collaborate with major logistics partners to decreaseexpenses and enhance competitiveness.
Exporters also need to minimise operating costs and emphasiseproductivity and efficiency by implementing advanced production and managementmethods, as well as adhering to quality standards like HACCP and ISO.
Additionally, Thai Tran advised durian producers and exporters todiversify their export markets rather than relying solely on one. While marketssuch as the US, Europe, UK, and Japan currently import modest amounts ofVietnamese durian, they officially recognise and fetch good prices for thefruit.
As such, these markets hold potential and should not be overlookedin favour of concentrating exclusively on China – a major export destinationfor Vietnam, which offers convenient transportation logistics.
Thai Tran believed that given the current competitive edge inpricing, Vietnamese durian can assuredly retain a consistent market share inthe UK, provided authorities and businesses collaboratively address thechallenges inherent to exporting this high-value speciality fruit.
He further emphasises the need for exporters to invest in thedevelopment of national brands for Vietnamese products, especially fruits.
Moreover, Vietnam should ramp up the promotion of its signaturefruit varieties, such as lychee and durian, utilising platforms like socialmedia, websites, newspapers, and advertisements during key sporting events, andtrade exhibitions.
Starting this year, Thai Tran noted that TT Meridian hasincorporated the image of the national flag on the packaging of Vietnameseproducts distributed in the UK. This strategy is intended to bolster the Vietnamesebrand, enabling consumers to effortlessly recognise and select Vietnameseproducts on supermarket shelves in the UK./.
VNA
