Vietnamese lychee exports need their own brand identity

Although Vietnamese lychees have enjoyed favorable harvests and high quality, the fruit still faces challenges in domestic consumption and exports. These difficulties stem from the lack of a strong brand identity, insufficient investment in packaging, traceability systems, and long-term market strategies.

The consumption of lychees during the peak harvest season is facing significant challenges as prices have dropped sharply. This is despite high production volumes and quality. This year, in major growing areas such as Lục Ngạn (Bắc Giang) and Thanh Hà (Hải Dương), farmers reported that lychee output was significantly higher than last year. However, contrary to expectations, selling prices have continued to decline.

In Bắc Giang, farm-gate lychee prices during the peak season ranged from VND 8,000 to 20,000 per kilogram. This was much lower than at the beginning of the season and down 25–40% compared with the same period last year. Some batches with certified growing area codes and attractive packaging could reach higher prices of VND 25,000–30,000 per kilogram. However, this was still insufficient to improve farmers’ overall incomes. With current production costs ranging from VND 8,000 to 12,000 per kilogram, many households can barely break even. They may even suffer losses if sales are delayed.

Not only the domestic market, but also lychee exports have experienced a significant decline. According to customs data, in the first four months of this year, lychee export turnover reached only USD 3.5 million. This figure was down more than 26% year-on-year. Although some markets such as the United States, Taiwan, and China increased imports, as many as 17 other markets reduced orders. Exports to the Netherlands and France fell by 84% and 40%, respectively.

According to representatives of the Vietnam Fruit and Vegetable Association, this year’s lychee season started later. Supply was limited at the beginning of the harvest, while logistics and transportation costs increased due to tensions in the Middle East. These factors have reduced the competitiveness of Vietnamese lychees in international markets. This is especially true in markets that require strict delivery schedules and stable pricing.

In addition, Vietnamese lychees still lack clear differentiation in terms of branding, appearance, and international standards. Meanwhile, Chinese lychees — Vietnam’s biggest competitor — have advantages in uniform appearance, attractive packaging, and more professional export strategies. This has placed increasing competitive pressure on Vietnamese lychees, particularly in the premium segment.

To address the long-standing issue of “bumper harvests leading to falling prices,” local authorities have begun placing greater emphasis on deep processing and developing branded products from lychees. However, to compete fairly in international markets, Vietnamese lychees need a comprehensive strategy. This strategy should cover packaging, standards, traceability, and a clear brand identity.

This year, Bắc Giang has actively promoted the processing of lychee-based products such as dried lychees, juice, and frozen lychees. The aim is to extend the consumption period and create additional access channels to premium markets. Lục Ngạn District currently has more than 1,000 drying facilities, processing over 6,000 tons of lychees. Many cooperatives, such as Phì Điền Cooperative, have proactively invested in electric drying technology and standardized packaging based on orders from European and U.S. markets. These products not only meet traceability requirements but also feature attractive packaging, convenient transportation, and suitability as gift products.

Notably, large enterprises such as Toan Cau Food Import Export Joint Stock Company have invested in machinery and large-scale processing lines to produce lychee-based products. These include juice, canned lychees, and frozen lychees. Raw materials are purchased through centralized collection channels, mainly from farmers who deliver their produce directly. This helps the company reduce collection costs and maintain better control over input quality.

However, experts believe that stronger coordination between the government and local authorities is needed for processing and branding models to achieve their full potential. First, businesses and cooperatives need support in accessing preferential loans and suitable land for building processing facilities. At the same time, common standards should be developed for processed lychee products. These standards should be linked with growing-region brands such as “Lục Ngạn Lychee” and “Thanh Hà Dried Lychee” to enhance the positioning of Vietnamese agricultural products in international markets.

Alongside investment in processing and packaging, trade promotion activities also need to become more professional. Bắc Giang has organized lychee promotion programs in major cities such as Hà Nội and Ho Chi Minh City to promote products and connect domestic consumption channels. This is a positive signal. However, to achieve sustainable market expansion, more international communication campaigns are needed. These campaigns should build the image of Vietnamese lychees as high-quality and safe products with full supply-chain traceability linked to specific growing regions.

The repeated cycle of “bumper harvests and falling prices” for Vietnamese lychees is not merely a seasonal issue. More fundamentally, it is a challenge related to branding and value-chain development. To change this situation, Vietnamese lychees need to be repositioned from a market perspective, where quality, appearance, and transparent product information determine value. With a strong brand, Vietnamese lychees can move beyond dependence on traders and sustainably conquer international markets.

Vietnamese source: https://thuonghieusanpham.vn/vai-thieu-viet-can-thuong-hieu-rieng

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