In 2021, Vietnam exported 89,300 tons of lychee that accounted for 41.4% of total consumption despite facing the Covid-19 pandemic.. Every year, Vietnam has averaged about 50% of total l
Overview of lychee export in Vietnam - c1 133x⁄2 9
Export activity of lychee in Vietnam . - TL HH ng 221211 x4 10
Selling and transporting goods out of the Vietnamese territory or into a special area located on the territory of Vietnam for production and business development is called export activities and currency is used as a payment method This activity plays a crucial role in international business
Exporting lychee is the activity of selling and transporting lychee out of Vietnam territory to other countries in the world based on the process and law Use currency as a payment method This process includes harvesting, sifting, sterilization, processing, packaging, irradiation
Exporting Lychee not only brings profits to businesses/individuals but also creates close relationships between countries Lychee is becoming a potential
10 agricultural product of Vietnam, affirming the position of Vietnamese agricultural products in the world
1.2.2 Criteria of evaluating the quality of exported lychee
Lychees that are exported to China, fiapan, Australia need to meet the following quality standards: ® The ripeness: the flesh must have the characteristic aroma of lychee The taste is sweet, fresh and juicy Besides that, the colour of lychee must be bright, blushing or red throughout the skin and the total soluble dry matter content of lychee juice is not less than 17% ® The weight: The diameter when cutting at the largest horizontal surface must meet the standard committed in the sales contract and must not be less than 25mm The number of fruits in the total weight of 1kg is not more than 65 and the steamer is no longer than 5mm These standards make sure that the quality of exported lychee is in the best condition ® The shape: In order to export, lychee must be ensured about the shape Lychee must be fresh, plump and grow normally The length of the steamer must reach the allowable level as agreed in advance in the sale contract Moreover, if the company wants to export lychee to fiapan market, they need to meet the standards on pesticide residues and the lychee fruit must be fumigated before export There are two conditions that the fresh lychee must be met: 1kg has 25-30 lychees and the sweetness is over 18 degrees With strict requirements on plant quarantine, Lychees exported to fiapan must be grown in gardens that are inspected and supervised by the Plant Protection Department and issued with planting area codes, meeting the regulations on plant quarantine and food safety in fiapan Exported lychees must be packed and fumigated with Methyl Bromide at establishments recognized by the Plant Protection Department and the fiapanese Ministry of Agriculture, Forestry and Fisheries (MAFF) with a minimum dose of 32g/ m3 within 2 hours under the supervision of plant quarantine officers of Vietnam and fiapan The lychee must be accompanied by a phytosanitary certificate issued by the Plant Protection Department
To the China market, they not only focus on the quality of the product but also the packaging design so the packaging also needs to be improved to make consumers more interested The lychee will be packed into a plastic bag with 1kg- 2kg of fruit and these plastic bags will be placed in a perforated, partitioned carton Lastly, packages must be labelled with the required information
To be able to export to the US market, Vietnamese lychee has to go through many mandatory regulations according to VietGAP and GlobalGap standards In addition, the US Department of Agriculture requires Vietnam to plan the growing area of lychee as well as the map and related code issued by the Plant Protection Department of Vietnam and monitor it to ensure that the lychee is not infected After harvesting, lychees must be irradiated to remove parasites (16 types of bacteria, fungi to prevent pests ) and must be labelled with irradiation to kill parasites In addition, the US sets very strict regulations on residues of antibiotics as well as pesticides, which are calculated at the rate of parts per billion per shipment of agricultural products of countries, including Vietnam
1.2.3 Lychee export policy in Vietnam
The Department of Industry and Trade works online to exchange information with commercial counsellors in foreign countries, especially Counselors in Guangxi, Yunnan - China, in fiapan, Australia, and Singapore on promoting activities to propagate, introduce and promote the consumption of lychee
The plan to consume lychee was issued ® Instructing farmers to take good care and control measures for harmful pests and diseases from now to the end of the crop; ensuring compliance with technical processes; and closely monitoring lychee production export area, especially the use of plant protection drugs to meet the requirements of foreign markets such as the US, Australia, and fiapan
* Creating favourable conditions, helping domestic and foreign traders and businesses to survey, learn, sign contracts for lychee consumption and processing ¢ Promoting lychee consumption according to the promulgated plan; inviting businesses to join the association to consume and export lychee, remove difficulties and obstacles in the process of consuming lychee ® Directing and guiding organizations and individuals to export lychee such as labels, and packaging according to the regulations of the importing country ® Creating conditions for production, business and consumption of lychee, especially capital for circulation and power source for establishments producing foam boxes, ice, supporting services for harvesting and lychee consumption ¢ Managing the market, against commercial fraud in the production, purchase and processing of lychee
In April 2020, fiapan announced that they could not send experts from the fiapan Plant Protection Department to Vietnam to inspect and recognize the disinfection treatment system of Vietnam's exported fresh lychee due to the impact of the COVID-19 epidemic Therefore, the export of fresh lychee from Vietnam for the first time to the fiapanese market will not be possible in the litchi harvest in 2020 The Ministry of Industry and Trade has sent a dispatch requesting the Vietnamese Ambassador to fiapan to work with the fiapanese Ministry of Agriculture, Forestry and Fisheries to convince the fiapanese side to consider other solutions instead of sending experts to Vietnam Specifically, temporarily authorize independent inspection organizations in Vietnam to do this in the short term or coordinate with the Ministry of Agriculture and Rural Development of Vietnam to carry out remote inspection measures In addition, the Minister of Industry and Trade of Vietnam also sent a letter to the Minister of Economy, Trade and Industry of fiapan, proposing to promote the MAFF Ministry to consider special and creative measures in the context of the pandemic COVID-19 disease to remove difficulties for exporting fresh lychees to fiapan in response to the COVID-19 epidemic
1.2.4 Supply and demand of Vietnam lychee
Currently, Bac Giang is considered the ticapitalti of fruit in the North of Vietnam and the ticapitalti of lychee with an area of 28,000 hectares, the output is from 150-200 thousand tons/year Particularly in 2020, Bac Giang lychee production is estimated at 160,000 tons
Bac Giang is the province that has the largest lychee growing area in our country, according to the report of the Department of Industry and Trade in 2021, the lychee area in Bac Giang is 28,100 hectares, the output is estimated at 180,000 tons (an increase of about 15,000 tons compared to the previous year The area of lychee produced according to VietGAP standards is 15,200 ha (54% of the total area of the province), aiming to reach 100% of the area in 05 production districts for domestic consumption and export activities Lychee that meets the GlobalGAP standard is 82 ha - production area for export to the US and Australia markets area of 218 ha, estimated output of 1,800 tons; The lychee production area for fiapan market covers an area of 219 hectares, with an estimated output of 1,800 tons
Regarding the demand for Vietnamese lychee, China is still a traditional market Besides, the market has been expanded to the EU, the US, Australia, fiapan, Korea, Southeast Asian countries, the Middle East, etc The markets of fiapan, the
EU (Germany, France, Belgium, the Netherlands ) have exported dozens of times more than in 2020; Southeast Asia is also expanding exports with the largest output ever with nearly 5,000 tons In 2021, total revenue from lychee and ancillary services is estimated at 6,821 billion VND This is really a successful crop
In 2015, for the first time, Vietnamese lychee was exported to two fastidious markets, the US and Australia According to the Ministry of Agriculture and Rural Development, in October 2014, the US Department of Agriculture for the first time licensed Vietnamese lychee to be exported to the US market, and in April 2015, the Australian Department of Agriculture also granted permission to import lychee from Vietnam In the same year, Vietnam added new markets such as the UK, France, Malaysia and fiapan The first batch of lychee with a weight of more than 500kg of fresh lychee exported to France was sold out in less than 3 days with the listed price of 9.9 Euro/kg (about 240,000/kg at the time rate) The first lychee export to France has reached a total volume of more than 2 tons The successful export of Vietnamese lychee to France is also considered a step to open the way to expand export markets to neighbouring countries and at the same time create motivation for other agricultural products of Vietnam to export to EU countries.
Analysis of Vietnam lychee export aCtiVỈẨV cài ve 15
Process export lychee in Viet Nam -c TQ HH HH HH ng re 15
Step 1: Selecting lychee from the garden or concentrated lychee in the purchasing area which meets export standards of exporting According to industry standard 10 TCN 204:1994 on fresh lychees for export, it includes:
About shape: Lychee should be fresh, plump, and of regular size, and should not be crushed or damaged Simultaneously, the length of their stalks must reach the acceptable amount specified in the sale contract
About weight: When cutting at the greatest horizontal surface, the diameter must satisfy the requirements agreed upon in the sales contract between the two parties and must not be less than 25mm At the same time, the total weight of 1kg contains no more than 65 fruits, the stalks are no longer than 5mm long, and the fruit stalks are chopped at the natural tieyeti of the fruit stalks
About ripeness: The flesh must be of high quality and have the distinctive scent of litchi Sweet, fresh, and succulent are the flavours Litchi juice has a total soluble solids concentration of at least 17% The entire litchi fruit has no other unusual flavour Besides that, the colour of litchi is brilliant, flushing, or crimson and spreads uniformly throughout the skin
Step 2: Preparing and packing the goods
Washing: the fresh litchis will be cleaned and aerated once more to thoroughly eliminate dirt and chemicals Finally, they will be allowed to dry before being packaged in plastic
Packing: Using Modified atmosphere packaging (MAP}, litchis are packed into plastic boxes weighing 2 to 2.5kg/box Each box of litchi must be
16 consistent, containing only fruits of the same origin, variety or kind, quality, size, and colour The displayed litchi should be representative of the full litchi within the packaging ap ;
ExtendCast™ Lychee ‘Export’ — (from left to right) - 2 weeks, 3 weeks and 4 weeks storage under sea-shipment simulation (2-4°C, 36-39°F)
Step 3: Preparing means of transport
Depending on Incoterms, the seller or the buyer will be responsible for hiring transport for the shipment The parties will have to make an application for an import-export license at the latest before making a customs declaration They will carry out quarantine or fumigation procedures for the consignment, prepare documents related to the shipment such as Packing list, Commercial invoice, Bill of Lading, etc to conduct customs declaration for export goods, from the moment each document is drafted and issued by the seller, the seller should send a draft/scanned copy by email to the buyer for reference Finally, they will send a scanned copy of all documents via email for the buyer to see and confirm before sending the original
Irradiation is used in the sterilization and extension of the shelf life of items such as spices, dried herbs, spices, etc If the product is not handled, harmful organisms may be present, enter products and move to other countries through trade, with the potential to damage food production and the environment as they multiply and spread in the destination country If lychee cargo exports to the EU, fiapan, US (countries with strict import requirements), we must have irradiation treatment Some countries such as fiapan and the US require food irradiation to take place before being imported into these countries Because ensuring benefits through irradiation with appropriate doses will help protect consumers’ health by killing pathogenic bacteria such as E coli, Salmonella Food irradiation has great economic benefits With this technique, food can be preserved longer, with less spoilage (such as preventing insect damage, slowing fruit ripening)
Irradiation will be carried out as soon as the goods are prepared and transported to the irradiation centres in Hanoi or Ho Chi Minh City for product irradiation
Process of Irradiation treatment is: e Step 1: The Plant Protection team at the Center will then select lychee at random to ensure that they meet the standards before irradiating.
Step 2: Lychee is moved from the temperature-controlled truck to a cold room at 10 degrees Celsius at the Irradiation Center to gradually acclimate to the outdoor temperature and avoid thermal shock
Step 3: Each box of litchi used in the screening has a radiation dosimeter affixed to the bottom to monitor the radiation level
Step 4: The outside of the container containing the dosimeter is labelled Depending on the dose, the irradiation time is either quick or slow With litchi, each irradiation door takes an average of 112 seconds to stop, and there are a total of 24 doors to stop in the process
Step 5: During the irradiation process, personnel at the irradiation centre transport boxes of litchi
Step 6: The metal container is a key shielding device that prevents the radiation from shining directly on the litchi From top to bottom, each box is irradiated on three sides
Step 7: The Irradiation Center’s staff uses a computer to monitor the irradiation process It takes roughly 50 minutes for each box of litchi to enter the irradiation line
Step 8: There are two meters for detecting radiation levels in the irradiation region This area’s wall is up to 2 meters thick, as required by the requirements, to prevent radiation from escaping
Step 9: The litchi is transferred to the storage warehouse after it has been irradiated
Step 10: Lychee is irradiated, then placed in cold storage for preservation before being transported to containers and begin the transfer to means of transport to the importing country, usually by air and sea
Procedure of exporting lychee in Vietnam cc nh xe 19
Hs of lychee: Look up export
Do the export procedures for lychee
Customs procedures Register for quarantine
Lychee has HS Code of Chapter 20: Preparations of vegetables, fruits, nuts or other parts of plants
=" Class: 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or alcohol, not specified or included in other places
Step 2: Look up export tax
= Lychee has Hs Code: 20089910 when exporting is not subject to tax
Step 3: Do procedure for export lychee
To be exported to foreign markets, lychees need to comply with the following procedures:
Customs procedures: enterprises must declare all details about the export shipment and carry out customs clearance procedures with the customs office
Phytosanitary: to ensure and be able to be exported, Vietnamese lychee must have full documents proving the origin and quality and must go through the phytosanitary process
Products must be irradiated: litchi fruit will be irradiated to meet quarantine criteria, inhibit reproduction and hatching of insects and eggs on fruit This irradiation step will help stabilize the lychee and keep its quality when it reaches the consumer
The growing area needs to meet the standards: for international markets, the lychee fruit must prove its origin and ensure that the growing area has met food safety and hygiene standards
Check product quality and pesticide quantity: with the criteria of natural quality, the management board will inspect the pesticide content in lychee fruit Drug residues in litchi must not exceed the limit to avoid affecting the fruit and consumers' health
Packaging, labels, and ways of packing goods: packaging standards, clear labels, full information as well as ways of packing goods will contribute to determining the quality of lychee fruit to maintain its delicious characteristics , nutritious and can be exported far and wide internationally
Other required documents: In addition to basic documents such as Bill, invoices, Packing list, it is also necessary to have a number of specialized inspection certificates such as Phytosanitary Certificate, Certificate of Quantity quality (Certificate of Quality), fumigation (Fumigation Certificate) or certificate of origin (Certificate of Origin) depending on the market the company exports to
Step 4: Register for plant quarantine
Register for plant quarantine: The object owner or the person authorized by the object owner to register for plant quarantine at least 24 hours in advance with the nearest plant quarantine agency before re-exporting the object
Submit your application: The object owner or the person authorized by the object owner submits the dossier directly to the plant quarantine agency at the department that receives the dossier and returns the results
Records include: o Certificate of registration cum plant translation (according to the form of the Quarantine Sub-department) o Contract of sale (required) o Bill of lading o Invoice o Packing list
Receive and check the completeness and validity of the application: The plant quarantine agency is responsible for receiving and checking the completeness and validity of the application for the certificate as prescribed If the application is complete and valid, the application will be accepted In case the dossier is incomplete or invalid, the object owner is requested to supplement and complete the dossier Inspect the object and issue the certificate: The plant quarantine agency examines the object Based on the results of the object inspection, the plant quarantine agency shall issue or not issue a certificate In case the certificate is not granted, the object owner shall be notified and clearly stated the reason
=" Prepare documents for customs declaration, including: o Booking note o Invoice o Packing list o Export license
= Transmit the declaration on Ecus5 software and view the declaration stream, after transferring the declaration, you need to attach INVOICE to the Ecus5 software in the section timanage the declarationti
=" Prepare documents to open the customs declaration, depending on what declaration is classified, you prepare the file to open the declaration accordingly If there is a permit, you must show the permit, if the goods are exported normally, you should prepare documents suitable for the declaration flow and the type of goods that go by air, goods in full containers or retail
=" Go to the port /ICD / airport to complete the customs procedures
Vietnam export lychee pFẽC HQ HH HH TT TT KT KH HH ghe 22
2.3.1 Vietnam’s export lychee price and quantity
Every year, Vietnam has about 50% of total lychee output exported to nearly
30 countries and territories around the world Vietnamese lychees are mainly exported to China, but also present in fastidious markets such as the US, EU, Canada, Australia At the 6th International Conference on Longan and Lychee, Vietnam ranked third in output among 20 lychee growing countries with 380 thousand tons/year, just behind China (more than 2 million tons/year) and India (more than 2 million tons/year) 677 thousand tons/year); far ahead of the fourth country is Thailand (48 thousand tons/year)
In 2019, the market for lychee consumption continued to expand both in domestic and foreign countries Lychee was mainly exported to China through official channels Including the lychee crop, there were about 400 turns of Chinese traders to coordinate with Vietnamese traders to set weight points for purchasing and exporting to China The total number of weighing points in the Bac Giang province at its peak was over 500 large and small scale points, mainly in the districts of Luc Ngan, Luc Nam, and Tan Yen Besides, lychee was also exported to many countries in the Middle East, EU, Russia, USA, Canada, fiapan, Korea, Singapore, Thailand, Australia Total export volume was estimated at 79,618 tons, accounting for 54.2% of total consumption
In 2020, total export volume was estimated at 78,200 tons, accounting for about 47.5% of total consumption (down 1.7% compared to 2019) Lychee was mainly exported to China and some EU countries, the US, Australia, fiapan, South Korea, Singapore, Thailand, the Middle East, etc In which, the Chinese market was estimated at 77,300 tons, accounting for 77,300 tons 98.8%; The remaining markets were estimated at 900 tons, accounting for 1.2% of export volume Despite adverse developments caused by the Covid-19 pandemic, lychee prices have always remained stable at a high level from the beginning of the crop to the end The total value from lychee and ancillary services was estimated at 6,830 billion (an increase of nearly 500 billion dongs, equivalent to a 7.3% increase compared to 2019), of which, revenue from lychee was estimated at 5,140 billion (an increase of more than 7.8% compared to 2019}, revenue from ancillary activities was estimated at 1,690 billion (an increase of more than 5.9% compared to 2019) The average selling price was 31,200 VND/kg
In 2021, the export market was stable, lychee had affirmed its brand and value in many countries and territories around the world with a total export volume of 89,300 tons (accounting for 41.4% of total production-consumption} Lychee was mainly exported to the traditional market of China and other countries
24 and regions such as the EU, the US, Australia, fiapan, Korea, Southeast Asian countries, the Middle East, etc The price of lychee had always remained stable from the beginning to the end of the crop The price of lychee was basically the same or even higher than the years without the pandemic Total revenue from lychee and ancillary services was estimated at 6,821 billion (equivalent to revenue in 2020 is 6,830 billion), of which, revenue from lychee was estimated at 4,274 billion, revenue from activities, ancillary services reached about 2,547 billion VND The average selling price of lychee for the whole crop was estimated at 19,800 VND/kg The export price was stable at a high level, ranging from 30,000 to 55,000 VND/kg In fastidious markets in the world such as fiapan, the US, the Netherlands, Belgium, France, Germany and some EU countries, the Middle East region and in China, some Southeast Asian countries the prices are very high, about 350 - 450,000 VND/kg
=" Cultivation cost: the cost of cultivation includes factor costs up to the stage of gathering the harvest
= Labor cost: hiring people for Post-harvest process
= Post-harvest processing cost: cleaning, handle, maintain
= Irradiation treatment costs, Fumigation cost and Phytosanitary cost to make sure that the commodity are qualified for export
=" Packing cost: for packing the commodity regarding to the standards
Cultivation cost, Labor cost 3750 - 4500 VND/kg
Post-harvest processing cost 15000 VND/kg
Packing cost 6500 VND/kg ¢ Delivery cost: Export lychee of Vietnam uses truck or container with road method Delivery cost of this our shipment includes:
=" Domestic transportation cost for transporting goods from warehouse to irradiation facilities
= Insurance: The seller must buy the insurance for the shipment due to CIP terms
= Fees for customs clearance, duties, and taxes in exporting side
Domestic transportation cost 11500 VND/kg
Customs clearance (including Irradiation treatment | 18000 VND/kg costs) e Sales Cost
=" Marketing cost: The company should increase the advertising strategy of Lychee products to foreign markets Specifically, the company is trying to strengthen the implementation of many
26 promotional activities such as promoting the image and the consumption of Vietnamese fresh Lychees in Tokyo as well as many other localities in fiapan The fiapanese side held Vietnam Week events at the AEON supermarket chain in Saitama, Kagoshima to promote Vietnamese agricultural products and food, especially Lychee In addition, one of the effective forms of promoting Vietnamese fabric products is to connect trade between Vietnamese lychee exporters and buyers and distributors in other countries, including fiapan Through these events, the leading Vietnamese lychee exporters and Vietnamese lychee growing localities have introduced to potential fiapanese customers the outstanding properties of Vietnamese lychee fruit, calculating the large commodity scale of lychee growing areas, and the capacity to meet a variety of lychee orders of Vietnamese enterprises
Set up company websites: o Since it is a fabric manufacturing company, setting up a website is essential The website must accurately convey the information of the business The goal of the business is to get customers to add those items and pay o When thinking about a domain name for your business website, you do not necessarily need to register the domain name exactly as you want your website to have However, it will make it easier for repeat visitors to find you Easier o In marketing and set up company websites strategy, it may be cost about 20,000,000
Financing cost: Financing cost is also known as the cost, interest, and other charges involved in borrowing money to build or purchase
27 assets This can range from the cost it takes to finance exporting loans through a bank
= Interest rate: Agricultural policies are increasingly being promoted and developed in order to meet the capital needs for production With farmers who borrow money from the business, the goal of the loan business is to exploit the farming business They are the source of unsecured object loans; the main overlay has been modified and supplemented on the central server of rural development Specific loans that farmers can borrow are as follows:
No loan customers Maximum amount
1 Customers are individuals and households 100 residing outside of rural areas with production and business activities in agriculture
2 Customers is an individual or household residing 200 in rural area
3 Customers are individuals, and households invest 200 in industrial plants and perennial fruit trees
4 Cooperative groups and business households 300
5 Customers are aquaculture households, offshore 500 fishing households that have signed a product consumption contract with a direct processing and exporting organization
6 Customers are cooperatives, farm owners 1.000 operating in rural areas or production and business activities in agriculture
7 The client is a cooperative for aquaculture or 2.000 offshore fishing, providing services for offshore fishing, aquaculture farm owners, unions of cooperatives operating in rural areas or conducting production and business activities in the field of agriculture
8 The client is a cooperative union of aquaculture 3.000 or offshore fishing, providing services for offshore fishing 3,000
Thus, according to the specific limit that farmers borrow as follows:
Loan Interest rate Level Time
Borrowing according to the credit | 7.5% 200 million VND | 3 years
29 limit for small-scale production and business households
Seasonal loans for farmers 7.5% flexible 1 year
Specifically, a farmer wants to invest in lychee cultivation, so he borrowed VND 200,000,000,000 from the business within one year and will pay both capital and interest Thus, within the amount of 200,000,000,000 with an interest rate of 7.5% each month, the farmer will pay the business the monthly principal amount of 16,666,666 and the related interest of 15,000,000 per month fiust like that and keep paying for the past one year
When a business starts a business, even if they have the capital to invest, they never use all their capital to invest However, they only use half or less of the capital, and the rest will be borrowed from the bank
Furthermore, now business loan is a form for businesses that want to borrow money to develop their business For example, to expand business development, to supplement working capital or to invest in fixed assets Lychee exporters will choose mortgage loans between unsecured and mortgage loans because the loan period is long, and the interest rate is always more favourable than unsecured loans Mortgage loans will bring a number of benefits to businesses such as o Reduce debt repayment burden: Interest rates are gradually reduced, long loan period can be up to 25 years As a result,
30 customers have more time to manage, balance their finances and repay debts o Flexible form of repayment: Monthly, quarterly and annual interest payment; principal instalment or one-time payment o Assets still belong to the enterprise: Although the property has been mortgaged, the borrower still can own and use the property The bank only retains the documents proving the borrower's ownership of the property as proof
Specifically, businesses borrow capital from banks in the amount of 1 billion within one year Businesses must bring their assets to the bank to mortgage their assets and get a loan With an interest rate of 6% a year, the business must pay the bank 5,000,000 per month, so on within one year And with this amount of 1 billion, businesses can also give loans to farmers and get a higher interest rate of 7.5%, thereby generating profits
When exporting lychee to China, we look for long-term market growth and consequently have higher expectations regarding market share and sales volume Because exporting lychee is the important field in argiculture industry, the export price need to be competitive and maintaining profit for business We expect 10% profit from exporting