A sustainable development strategy for Viet Nam’s coconut industry

Viet Nam’s coconut industry currently covers about 200,000 hectares, with 80% of that area concentrated in the Mekong Delta. Each year, the country produces over 2 million tons of coconuts, making Viet Nam the fourth-largest coconut exporter in the Asia-Pacific region and the fifth in the world.

Notably, in 2024, Viet Nam’s coconut export value surpassed USD 1.089 billion for the first time, with processed products accounting for nearly 70%. This milestone positioned coconut among the country’s three billion-dollar fruit exports, alongside durian and dragon fruit.

However, the industry still faces multiple challenges. Most enterprises remain small and medium-sized, relying on outdated technology and fragmented raw material areas. International requirements for food safety and traceability are becoming increasingly stringent. High logistics costs, limited product preservation capacity, and the absence of a well-defined global brand for Vietnamese coconut products continue to hinder sustainable growth.

According to Associate Professor Dr. Pham Anh Tuan from the Viet Nam Institute of Agricultural Engineering and Post-Harvest Technology, only about 30% of Viet Nam’s coconut products are currently deeply processed within value chains. The main products include coconut water, coconut milk, coconut oil, desiccated coconut, coconut candy, coconut cakes, activated carbon from coconut shells, as well as handicrafts and materials made from coir, such as mats, mattresses, and planting nets. Some advanced technologies have been applied, such as UHT sterilization for coconut water, aseptic packaging, and cold centrifugal extraction of virgin coconut oil; however, most processing equipment must still be imported.

He emphasized the need to clearly identify target groups, key products, and suitable production scales, as well as assess consumer markets to determine sustainable development directions. At the same time, he recommended providing consultation and support for enterprises in selecting appropriate technologies and equipment, and in designing and constructing processing facilities that meet international standards, capable of satisfying the stringent requirements of major markets such as the United States, the EU, and Japan.

“The Government and relevant technical agencies should strengthen support for enterprises in improving technical processes, refining product quality standards, and expanding the application of science and technology in processing and preservation, particularly in technologies for virgin coconut oil (VCO) extraction and high-quality coconut milk production. It is essential to develop programs that help enterprises acquire and transfer foreign technologies and equipment, and to build technical cooperation with international partners to establish a modern coconut value chain.

In addition, we should consolidate the demand for technological innovation and develop a database on coconut processing technologies and equipment both domestically and internationally. This would enable coordination with enterprises to propose and implement science and technology projects at the national, ministerial, and local levels. Such policies will foster innovation and help shape a modern, environmentally friendly coconut processing industry geared toward sustainable development,” he shared.

According to Mr. Huynh Khac Nhu, General Director of Tra Bac Joint Stock Company (Trabaco), sustainable development in the coconut industry requires addressing two key issues simultaneously: ensuring stable income for coconut farmers and helping enterprises enhance the value of coconuts through deep processing and technological innovation.

“For example, Malaysia is targeting a yield of 150 coconuts per tree and a planting density of 200-250 trees per hectare by applying high-yield varieties and advanced cultivation techniques. This is a trend Viet Nam needs to quickly adapt to if it wants to achieve higher economic efficiency in the coconut sector,” he emphasized.

Mr. Nhu believes that improving seed quality is the decisive factor for increasing productivity and quality. “Those who work in coconut breeding know that it takes around 36-48 months from planting for trees to bear fruit, and only after six years can the true quality of a variety be accurately assessed,” he shared. Therefore, long-term investment in coconut breeding, selection, and quality verification should be considered a foundation for Viet Nam’s coconut industry to integrate more deeply into the global value chain.