With export turnover exceeding USD 1 billion and ranking among the world’s top five coconut-exporting countries, Vietnam’s coconut industry still relies heavily on raw material exports with relatively low added value.
According to preliminary statistics from the General Department of Vietnam Customs, in 2025 Vietnam’s exports of coconuts and coconut-based products reached approximately USD 1.15 billion, placing the country third globally, behind the Philippines and Indonesia.
This figure underscores the significant potential of an industry long associated with many localities in the Mekong Delta and the central coastal region, where coconut trees serve not only as a source of livelihood but also as a cultural and ecological symbol.
The paradox of high volume, low value
Despite impressive export figures, the value captured by enterprises and farmers remains modest. The core reason lies in the industry’s continued focus on exporting raw coconuts and semi-processed products, limited deep processing, and the absence of a strong international brand.
According to Mr. Rocky Ngọc Thạch, CEO of Smart Link Logistics, Vietnam’s coconut exports still follow a “selling what we have” mindset rather than “selling what the market needs.” Meanwhile, regional competitors have moved ahead by standardizing products, investing in packaging and brand storytelling, and targeting higher value-added segments.
In demanding markets such as Japan, the United States, and the EU, consumers can easily find coconut products from Indonesia, the Philippines, and Thailand featuring modern designs, convenient packaging, and clear brand positioning. In contrast, Vietnamese coconuts are largely exported as raw materials or supplied to foreign processors who repackage and sell them under their own brands.
As a result, although Vietnamese coconuts are recognized for quality, much of the added value is captured by intermediaries, leaving domestic enterprises and farmers with limited gains.
At the forum “Communication on Managing Coconut Tree Health to Meet Consumer-Linked Production Requirements,” Assoc. Prof. Dr. Phạm Anh Tuấn from the Institute of Agricultural Engineering and Post-Harvest Technology noted that only about 30% of coconut products are deeply processed along the value chain. Key processed items include coconut water, coconut milk, coconut oil, desiccated coconut, coconut candy, coconut cakes, activated carbon from coconut shells, as well as handicrafts and fiber-based materials.
Some advanced technologies—such as UHT sterilization for coconut water, aseptic packaging, and cold centrifuge extraction for pure coconut oil—have been applied. However, most equipment must be imported, resulting in high investment costs and limiting scalability.
Dr. Tuấn emphasized that the industry must clearly identify flagship products, target markets, and appropriate production scales. At the same time, enterprises need support in accessing technology and designing processing facilities that meet international standards required by markets such as the United States, the EU, and Japan.
Branding: A critical missing link
At the seminar “Building the Vietnamese Coconut Brand – Towards No.1 in Exports,” Mr. Imai Toshiro of Phúc Lai Co., Ltd. (FLIX, Japan) cited Japan’s experience with Wagyu beef, which faced challenges in certain markets after the name had been registered abroad.
He warned that without timely shifts in mindset and systematic branding investment, Vietnam’s coconut industry could encounter similar risks. Although Vietnam has high-quality aromatic coconut varieties and ranks among leading global producers, continued raw exports without a clear brand protection and development strategy could erode competitiveness—even domestically.
Experts stress that brand building not only enhances export value but also strengthens the competitive position of Vietnamese coconuts among tropical fruits. Yet branding investment remains fragmented. Some enterprises meet only 60–70% of branding criteria but lack the capacity to scale up, while many others remain at basic levels—focused on logos and simple packaging without consistent brand narratives. This inconsistency limits their ability to command premium prices or build long-term trust.
Completing the value chain for sustainable growth
Following administrative mergers, Vietnam now has 18 coconut-growing provinces with more than 200,000 hectares under cultivation and annual output exceeding 2.26 million tons. The sector includes 145 processing plants and around 600 enterprises. To date, 32 enterprises have developed certified raw material areas through specialized farming models or farmer linkages, with 68 hectares meeting international organic standards.
The industry is gradually shifting from inorganic fertilizers to organic and biological alternatives, improving fruit quality and stabilizing production. However, sharp fluctuations in raw coconut prices over the past two years highlight the need for greater market transparency.
At the Ministerial Conference of the International Coconut Community in October 2025, Vietnam proposed establishing a regional raw coconut price information exchange platform in Asia to better protect producers’ interests.
According to Mr. Cao Bá Đăng Khoa, Vice Chairman and Secretary General of the Vietnam Coconut Association, the association is implementing a supply chain program built on close cooperation among enterprises, cooperatives, farmers, and banks. Enterprises invest in internationally certified organic raw material zones; farmers and cooperatives organize production; and banks provide financial support—forming a foundation for sustainable development.
Pilot projects in Đồng Tháp, Vĩnh Long, and Cần Thơ have expanded internationally certified organic coconut areas to more than 50 hectares, benefiting thousands of households. Simultaneously, collaboration with research institutes, universities, international financial organizations, and trade promotion agencies aims to strengthen production capacity, quality management, disease control, and gradually establish a national coconut brand in global markets.
Experts agree that once the value chain is fully integrated and branding is systematically developed, Vietnamese coconuts will not only increase export turnover but, more importantly, elevate their value, global standing, and long-term competitiveness in international markets.