FINAL REPORT PRACTICES OF INTERNATIONAL TRADE ANALYSIS OF DRAGON FRUIT EXPORT ACTIVITIES IN VIET NAM

TON DUC THANG UNIVERSITY
FACULTY OF BUSINESS ADMINISTRATION
MAJOR: INTERNATIONAL BUSINESS

FINAL REPORT
PRACTICES OF INTERNATIONAL TRADE

ANALYSIS OF DRAGON FRUIT EXPORT ACTIVITIES
IN VIET NAM

Lecturer: Nguyen Thi Tuong Vy
Team 02 – Shift 04

Ho Chi Minh City, December 22th 2021


PREFACE
In the first place, in order to carry out and successfully complete the subject of
Practices of international trade and the final report "Analysis of dragon fruit export
activities in Viet Nam", our team has received a lot of help and facilitated advantage
from Ton Duc Thang University. In particular, we would like to express our sincere
thanks to Ms. Nguyen Thi Tuong Vy – our lecturer, who directly guided and
accompanied our team throughout the process of completing this course and this final
report.
Our report is made based on the efforts of the team members (team 4) as well as
the references, lessons learned from books, research works, information from news
sites... In the process of implementation, although we have tried our best, but because
of limited knowledge and lack of practical experience, it is difficult to avoid
shortcomings. Therefore, we are looking forward to receiving your attention and
comments to improve this report.
Finally, we wish you all good health and good work.

We sincerely thank you!
Sign
Team 4

1


THE LIST OF GROUP MEMBERS

No.

Full name

Student ID

Task allocation

 Introduction
1

Do Ngoc Anh

720I0434

 Chapter 2 (2.1 + 2.2)

Evaluation

100%

 Synthesis the report
2

Dinh Nguyen Gia Dinh

720I0490

3

Tran Tien Minh

720D002

 Chapter 1
 Chapter 2 (2.5)
 Chapter 1
 Chapter 2 (2.5)
 Chapter 2 (2.4)

100%

100%

4

Tran Thi Minh Tam

720K0592

5

Nguyen Thuc Khanh

720I0517

6

Le Phan Bao Duy

720I0139

 Chapter 2 (2.3)

100%

7

Truong Thuy Duyen

720D0189

 Chapter 2 (2.3)

100%

8

Tran Mai Han

720D0022

 Chapter 3
 Chapter 2 (2.4)
 Chapter 3

 Chapter 2 (2.6)
 Conclusion

100%

100%

100%

2


THE LIST OF ACRONYMS

Abbreviation

Explain

L/C

Letter of Credit

D/A

Documents against Acceptance

D/P

Document against Payment

T/T

Telegraphic Transfer

M/T

Mail Transfer

CAD

Cash against documents

C/O

Certificate of Origin

VietGAP

Vietnamese Good Agricultural Practices

GlobalGAP

Global Good Agricultural Practices

ACFTA

ASEAN - China Free Trade Agreement

3


TABLE OF CONTENTS
INTRODUCTION................................................................................................................................5
CHAPTER 1: OVERVIEW OF DRAGON FRUIT EXPORT INTO CHINESE MARKET.........7
1.1. Dragon fruit production in Viet Nam.................................................................7
1.2. Export activity of dragon fruit in Viet Nam.........................................................8
1.2.1. Dragon fruit export theory......................................................................................8
1.2.2. Criteria for evaluating the quality of exported dragon fruit....................................9
1.2.3. Dragon fruit export policy in Viet Nam................................................................10
CHAPTER 2: ANALYSIS OF VIETNAM DRAGON FRUIT EXPORT ACTIVITIES..............12
2.1. The quantity and dragon fruit export price........................................................12
2.2. The quality and categories of dragon fruit export in Vietnam ................................13
2.3. The competitors of Vietnam's export dragon fruit...............................................15
2.4. The process of exporting dragon fruit in Vietnam...............................................16
2.5. The documents of dragon fruit export..............................................................18
2.5.1. The contract..........................................................................................................18
2.5.2. The custom clearance...........................................................................................20
2.6. SWOT analysis of dragon fruit export..............................................................21
2.6.1. Strengths...............................................................................................................21
2.6.2. Weaknesses..........................................................................................................21
2.6.3. Opportunities........................................................................................................22
2.6.4. Threats..................................................................................................................23
CHAPTER 3: THE SOLUTIONS OF IMPROVING EXPORT ACTIVITIES............................25
CONCLUSION...................................................................................................................................27
REFERENCES...................................................................................................................................28

4


INTRODUCTION
Nowadays, globalization is gradually becoming a common trend in the world,
especially in the economic field. With international trade activities, the opening and
trade between different economies have opened up many opportunities for countries in
developing their economies, especially countries with strong developing economies
like Vietnam.
About fruit exports, it can be seen easily that China is an important and
potential export market for Vietnamese fruit with about 70% of total fresh fruit
exports. Dragon fruit is classified in the group of twelve key fruit trees of Vietnam, is
one of the five crops arranged to be harvested in different seasons of the year, and is
also one of the nine key crops of Vietnam's competitive advantage in the world
market. Accordingly, dragon fruit is the main export product, accounting for the
highest proportion of fruit export turnover in recent years.
In the process of integrating into global trade, Vietnam has joined the signing of
the ASEAN - China Free Trade Agreement (ACFTA) which took effect in 2010,
which is expected to bring practical benefits to businesses. Vietnamese industry with
the tariff rate reduced to 0% on nearly 8000 types of products. In the first quarter of
2021, Vietnam's dragon fruits of all kinds were mainly exported to the Chinese market,
accounting for 91,8% of the total export turnover of this fruit, reaching 301,8 million
USD, increased around 5,3 % over the same period in 2020.
Because of the above reasons, our team has chosen the topic "Analysis of
dragon fruit export activities in Viet Nam" for the final report to be able to clarify
the process of exporting dragon fruits to the Chinese market, and at the same time
offer recommendations to improve activities of Vietnam's dragon fruit exports.

5

CHAPTER 1: OVERVIEW OF DRAGON FRUIT EXPORT
INTO CHINESE MARKET
1.1. Dragon fruit production in Viet Nam
Vietnam ranks first in the world in terms of dragon fruit exports, with the
highest acreage and yield of the fruit in Asia. Dragon fruit is presently being grown in
nearly all provinces, however, it has grown into large-scale extensive farming regions
in Binh Thuan, Tien Giang, and Long An provinces. The planting location of dragon
fruit withinside the 3 provinces bills for approximately 92% of the whole location and
approximately 96% of the country's output. (FFTC Agricultural Policy Platform,
2018)
Binh Thuan province has the biggest vicinity and output of dragon fruit
accounting for 63,2% of the entire vicinity and 68,4% of the country's output,
compared to Long An (accounting for 17,3% and 14,2%) and Tien Giang province
(accounting for 10,9% and 13,7%). The planting regions are in a few southern
provinces including Vinh Long, Tra Vinh, Tay Ninh, Ba Ria-Vung Tau, and a few
provinces withinside the north including Lang Son, Vinh Phuc, Hai Dung, Quang
Ninh, Thanh Hoa, and Ha Noi. (FFTC Agricultural Policy Platform, 2018)
Dragon fruit planted in current years has excessive yields that convey profits to
the growers. The charge of fruit from the low season is generally from USD$0.15 to
USD$0.25, which is assessed better than the main season. The dragon fruit season is
from April to October, the peak season from May to August. Many dragon fruit sorts
are bred to grow productivity, quality, and suitability of land and climate. As a result,
dragon fruit becomes economically feasible and has an excessive aggressive gain over
different crops. (FFTC Agricultural Policy Platform, 2018)
Among the main consuming markets of Vietnam's dragon fruit, China is the
main consumer market. In the period 2011 - 2015, Vietnam's dragon fruit exports to
China accounted for 81,2% in volume and 72,8% in terms of value. From 2011 until
now, Vietnamese dragon fruit has been exported to China through two border gates:

Po Chai (Guangxi province) and Ha Khau (Yunnan province). In addition, dragon fruit
is also bought and sold by border residents of the two countries at additional border
6


gates. Chinese people are exempt from import tax and VAT at the rate of 8.000
yuan/person/day. (FFTC Agricultural Policy Platform, 2018)
According to the Import and Export Department (Ministry of Industry and
Trade), it was estimated that in November 2020, the export of dragon fruits of all kinds
(including fresh and frozen dragon fruit, dragon fruit juice, and dried dragon fruit)
reached 82 million USD, decreased by 8.9% over the same period in 2019. In the first
11 months of 2020, dragon fruit exports of all kinds were estimated at 1.08 billion
USD, down 10.2% over the same period. (vnbusiness.vn, 2020)

Figure 1.1: The export situation of dragon fruit (2019 - 2020)

1.2. Export activity of dragon fruit in Viet Nam
1.2.1. Dragon fruit export theory
a. The definition
Export is the activity of promoting and transporting items out of the Vietnamese
territory or right into a unique vicinity positioned at the territory of Vietnam that is
taken into consideration a separate customs vicinity below the provisions of regulation
for manufacturing and enterprise development. Exports are more complicated than
home purchases on the idea of the usage of foreign money as a fee method. Exports
are the main activity of overseas exchange and they play a vital function in
international business.
Dragon fruit export is the activity of selling and transporting dragon fruit out of
Vietnam territory to another country in the world. As a payment mechanism, use the
7

currency. The export of dragon fruit is carried out in compliance with the process and
the legislation. 
b. The roles of export activity
Firstly, the export of agricultural products creates an important source of
accumulated capital to import and develop production, as well as serve for the
industrialization and modernization of the country. Second, agricultural products
export has a positive and effective impact on improving people's living standards by
creating more jobs and increasing incomes for workers. Another pertinent point is that
export activities contribute to the expansion and promotion of external economic
relations, enhancing the country's economic position in the world market. Last but not
least, the export of agricultural products contributes to promoting the improvement of
the state's economic policy and management mechanism in accordance with
international laws and practices.
1.2.2. Criteria for evaluating the quality of exported dragon fruit
Dragon fruit that wants to be exported to the Chinese market must fully meet
the following criteria (ratracosolutions.com, 2020):
Table 1: Quality standard table for exporting dragon fruit to China
Quality criteria

Standard
Fresh dragon fruit, red skin, white flesh.
A number of broken ears ≤ 3 years/left, blue to yellow-green,
bright green ears.

External status

Materials with broken ears close to the left are not accepted.
The left peduncle must be cut close.
The left throat must be cleaned.

Skin color,

The ripeness of the fruit reaches 4-6 colors according to the

ripeness
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following standards:
- About 75% of the deep red color appears on the surface of the
fruit skin, the ears are blue.
- About 90% of the surface of the shell is pink with a few spots of
blue, the ears turn from yellow-green to bright green.
- About 95% of the surface of the shell is bright pink with some
blue spots, the ears turn from yellow-green to bright green.
Make sure the fruit has enough weight:
Mass

S: 300g – 380g
M: 381g – 460g
L: 461g – 600g

Rate of the unused
portion
Inner state

About 40% of fruit weight (Including left skin, left stalk, left ear)

White flesh, black seeds, firm flesh.

1.2.3. Dragon fruit export policy in Viet Nam
In order to contribute to promoting production, improving product quality and
ensuring the best conditions for dragon fruit exports to the Chinese market in the
context of the prevention of the Covid-19 epidemic, the Ministry of Industry and Trade
proposed the Ministry of Agriculture and Development and the People's Committees
of the provinces coordinate in implementing a number of policies:
For the Ministry of Agriculture and Rural Development:
Work closely with relevant agencies under the Ministry of Industry and Trade,
associations, and businesses to strengthen the implementation of activities to connect
supply and demand. Promote the purchase and domestic consumption of dragon fruit
9


in particular and other fruit products entering the harvest in general. Towards the goal
of ensuring a safe production process as required by the Covid-19 epidemic prevention
and control.
For the People's Committees of the provinces in the growing areas:
Adjust production plans and harvest timelines for gardeners, cooperatives, and
companies until customs clearance activities at the border return to normal.
Collaboration with the Ministry of Industry and Trade, as well as other major
ministries and sectors. Activate the distribution system and strengthen the supplydemand relationship. For product launch and distribution, concentrate on e-commerce
platforms. (moit.gov.vn, 2022)

10


CHAPTER 2: ANALYSIS OF VIETNAM DRAGON FRUIT
EXPORT ACTIVITIES
2.1. The quantity and dragon fruit export price

The geography perspective and other external factors have benefitted
Vietnamese dragon fruit to be one of the most potential markets in the local area. Since
Vietnam has the opportunities of the variety of dragon fruit and the diversified dragon
fruit manufactured products, Vietnamese dragon fruit export is expected to increase
the total revenue to 3.7% in the period of 2020-2025 (Bảo hộ thương mại và giải pháp
cho xuất khẩu của Việt Nam, 2021). However, from 2020 until recently many
obstacles have limited Vietnamese dragon fruit export quantity leading to excess
production in the domestic market. One of the prominent causes is the limitation
regulation during the Covid 19 period which has been shown to be the main factor that
slows down the flow of exporting and limitation of logistics storage. According to Vu
Ngoc Diep, in the first 3 quarters of 2020, the total revenue of Dragon Fruit was only
attained US$ 961,4 million which had declined 10,8% compared to the same period of
last year (Vu, 2021). 
According to Ha Minh Thanh and his colleagues (2018), the total productive
area for dragon fruit in Vietnam accounted for 50,000 ha of which 95% is white flesh
and 5% is red flesh. Tien Giang, Long An, Binh Thuan are believed to be the main
parts of growing dragon fruit with a total area reaching 37,000 ha. With a capacity of
22.7 tons/ha, Vietnam agriculture is able to produce 700,000 tons annually.
Furthermore, it is stated that 80-85% of the production is for export to 40 countries and
territories.  Thailand is one of the largest dragon fruit exporting markets of Vietnam
with a turnover value of  US$1.09 million. 
Before the novel coronal epidemic, the price of white flesh and red flesh dragon
fruit fluctuated from 25,000 VND - 33,000 VND and  35,000 VND - 40,000 VND
respectively. Since the cross-border export and import activities have been limited, the
price of this tropical fruit dropped sharply by about 5,000 VND - 6,000 VND/kilo
(Dragon fruit price rises as export opportunities open up, 2021).

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2.2. The quality and categories of dragon fruit export in Vietnam
a. The quality of dragon fruit export 
Dragon fruit belongs to the cactus family which mostly came from tropical
countries and its peak season is from April to October. In order to be productive
throughout the year, Vietnamese farmers have to use the Lightning technique in the
off-season to maintain both the outcome and quality in the short term.
In addition, dragon fruit is considered to be a kind of superfood that is packed
with many natural antioxidants like betalains. In some studies, it appears that betalains
may reduce cholesterol levels, contain anti-inflammatory properties, and stimulate the
growth of new blood vessels. Dragon fruit is low in calories but packed with essential
vitamins and minerals. It also contains a substantial amount of dietary fiber. Beyond
essential nutrients, dragon fruit supplies beneficial plant compounds like polyphenols,
carotenoids and betacyanins. However, its own nutritional value is not enough, in
order to export dragon fruit to other countries, this kind of fruit also needs to meet
certain criteria (Tridge, 2021).


Weight: depending on the import market:


European market: 250-300g/ each



Chinese market: 400-600g/ each



Singapore market: 300-500g/ each



Hong Kong market: > 400g/ each



The fruit does not contain harmful fungi or insects.



The fruit’s facade is good, 70% of the surface is smooth.



The nasal cavity is not more than 1cm deep and the fruit has no protruding
nose.



The ears are straight, hard, green and over 1.5cm long (for the Chinese market,
the longer the ear, the better).



The flesh is white and hard, the seeds are black.



The fruit has no mechanical damage or dark spots and no green spots or
blemishes due to sun exposure or chemical spraying.

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b. The categories of dragon fruit export   
Dragon fruit is an important export fruit and is often in the group of "billiondollar export products" of Vietnam in recent years. There are three popular types of
dragon fruit exported by Vietnam:
Red dragon fruit: also known as pink flesh dragon fruit, the characteristics as
their name suggests that they have a very eye-catching red-pink flesh, light-loving and
shallow-loving plants. Therefore, they are often grown in a well-ventilated area, get
lots of sunlight. The natural fruit harvest season usually falls in summer or autumn.
But nowadays, with technology and science - engineering, people can adjust the
fruiting season intentionally or fruiting the whole year. 

Figure 2.1. Red dragon fruit

White dragon fruit: has a pink or red outer skin, white flesh as the name
suggests. They love light so they need to be planted in a cool place and receive a lot of
suns. With cool sweetness and lots of water, dragon fruit has the effect of losing
weight, beautifying the skin and is good for the cardiovascular system.

Figure 2.2. White dragon fruit

Purple dragon fruit: classically crossed from red dragon fruit and white dragon
fruit. The purple dragon fruit was born with outstanding features, especially strong
13


pollination and flowering ability. Purple dragon fruit has large branches, oval or eggshaped fruit, the flesh has an eye-catching pinkish purple color, if not noticed, it will
be confused with red dragon fruit. This dragon fruit variety is easy to grow and

produces high-quality fruit.

Figure 2.3 Purple dragon fruit

2.3. The competitors of Vietnam's export dragon fruit 
Vietnamese dragon fruit is facing fierce competition with other suppliers in
Thailand, Cambodia, Indonesia, Malaysia, etc.
Previously, fresh dragon fruit supplied to the Chinese market mainly came from
the domestic market which grows and imports from Vietnam. But now there is the
third supply from Indonesia.
According to the Produce Report, in addition to importing dragon fruit from
Vietnam, the Chinese Customs Department has announced that some types of fresh
dragon fruit from Indonesia are allowed to be imported into China due to meeting
enhanced hygiene and quarantine requirements. The approved fruits this time are
purple dragon fruit, red dragon fruit and white dragon fruit (thôn, 2021).
Thailand is currently a formidable opponent of Vietnamese dragon fruit.  About
6 - 7 years ago, Thailand did not have dragon fruit, but recently, this country has
identified dragon fruit as the main crop, which will be focused on developing into the
main tree.  From the position of almost dominating the market, now the market share
of Vietnamese dragon fruit exported to Europe has decreased to just over 50%.  While
the market share of Thai dragon fruit exported to this market from the bottom position
14


has risen to the second position due to temporary import and re-export of Vietnamese
dragon fruit. (Những thách thức của trái thanh long Việt Nam trên thị trường thế giới,
2021)
According to the Labor Export Department, Cambodia has prepared to supply
dragon fruit to China. In May 2020, the Cambodia Agricultural Research and
Development Center launched a project to grow dragon fruit. Thereby 1000 hectares

of arable land will be made available to plant a million dragon fruit trees to supply the
export market. Besides, Cambodia also plans to establish a dragon fruit processing
factory with the main target to export to China and Vietnam. Thus, if a Cambodian
dragon fruit is granted an official export license to China, it will compete directly with
Vietnamese dragon fruit, whose main consumption market is China. According to
experts, this is a worrying signal. Cambodia's dragon fruit growing area is not much
while the demand in the Chinese market increases every year (luật, 2021).

2.4. The process of exporting dragon fruit in Vietnam
A complete export process will help exporters save time and manpower. For the
dragon fruit export, exporters must follow the correct process and law.
The dragon fruit export process has the following steps:


Step 1: Negotiate and sign export contracts:
Dragon fruit export contract is a contract to sell dragon fruit by a Vietnamese

trader to a buyer with a business office in China to transfer the dragon fruit to China
and at the same time transfer the ownership of the dragon fruit to the buyer. To sign a
contract to export dragon fruits, the Vietnamese contract holder is a trader, including a
legal entity or an individual that conducts commercial activities independently,
regularly and with business registration. The contract subject of the Chinese party is a
Chinese organization or individual with legal capacity and civil act capacity.


Step 2: Prepare payment terms:
If paying by L/C, the seller needs to remind the buyer to ask the bank to open

the L/C according to the agreement, check the L/C. If deemed appropriate, continue

15


with the next procedures for delivery, if not, notify the buyer and the L/C opening
bank for correction, until it is appropriate to continue.
If paying by T/T in advance, the seller reminds the buyer to transfer the money
in full and on time. Wait for the bank to say "yes" before proceeding with the delivery.
With other payment methods such as postpaid T/T, the seller must deliver the
goods before they can perform the payment work.


Step 3: Prepare goods for export:
The place that produces dragon fruit for export needs to prepare the goods in

terms of quantity, quality, packaging, preservation,... to fully meet the conditions
specified in the contract. Due to the characteristics of fresh fruit, it does not last long,
so it must be purchased at the factory and packed on the same day and then put in cold
storage. Therefore, it is necessary to choose a packing team with good health, know
how to pac,k and work hard. When the goods arrive at the warehouse, they must be
processed and packed immediately regardless of day or night.


Step 4: Check goods before delivery:
The exporting party needs to check the goods for quantity, weight, quality and

the ability to spread disease, to avoid being returned when the goods are not of good
quality. This inspection is carried out both at the place of production and at the border
gate.


Step 5: Make the customs procedures:
The place of export of dragon fruit declares and submits the customs

declaration, submits or presents documents in the customs dossier. A customs dossier
consists of a customs declaration or a document replacing the customs declaration and
relevant documents.


Step 6: Hire vehicles and deliver goods for transport:
Dragon fruit exports to China are mainly by road. Vehicle rental can be carried

out by the seller or the buyer.
The seller must hire a means of transport if the export contract stipulates that
the seller hires a vehicle to carry the goods. This method is implemented in the
condition that the delivery basis of the export contract is CPT, CIP, DAT, DAP, DDP.
16


The buyer must hire a means of transport to return home if the export contract
stipulates delivery in the country of the exporting party. This method is performed
under the condition that the delivery basis of the export contract is EXW, FCA.


Step 7: Payment:
When the goods have been on board and depart, it is also time to ask the

importer to pay the total amount to the exporter or the remaining amount after
prepayment.


Step 8: Liquidation:
Contract liquidation is the final step of the official dragon fruit export. For

exporting dragon fruit under quota without signing a contract, there is no need to carry
out this step.

2.5. The documents of dragon fruit export 
2.5.1. The contract 
Some points to notice when drafting and signing a contract:


Before signing, the conditions should be agreed upon. 



The contract must be explicit, precise, detailed and unambiguous.



The vendor of dragon fruit can directly export or entrust another unit
(specializing in exporting) to export.

Mandatory terms within the contract:
(i) Name of products:
The name of the products is one of each of the important terms in a global
contract of sale of products because it is the premise for the delivery of products,
determining the sort of products to be traded. Therefore, the name transfer must be
clear, specific, and precise, avoiding ambiguity following the provisions of the sale
and getting a contract.
For example, the name dragon fruit may be a common name because there are

many other forms of dragon fruit on the market. Therefore, a correct description for
17


items like dragon fruit should also include details like type, place of origin, and a few
required specifications.
Commodity: Vietnamese white flesh dragon fruit.
(ii) Quality:
In the contract, the standard of the merchandise is usually paid special attention
to by the importer. When negotiating product quality in a contract, clear criteria like
shape, weight, color, taste, physical properties, composition, and other aspects of the
products must tend.
Notice:


The color of dragon fruit is of course bright red, or slightly light red naturally
(when harvested, color must be classified, large and tiny, evenly in keeping
with each type).



Size, color, and harvested dragon fruit must be divided into 3 types (types 1, 2,
3).



There's no fruit with decay or defects.



The skin of the dragon fruit skin must be naturally beautiful, without black
spots on the skin of the dragon fruit.

(iii) Symbol code:
Codes are symbols and letters that guide the delivery, transportation, and
preservation of products. The symbol code must be easy to read, easy to work out,
written in paint or ink without smearing, large enough size, no pictures affect the
standard of products, written in certain characters.
(iv) Quantity:
The seller is obliged to deliver the right quantity required within the contract.
 (v) Payment:
Payment is the main obligation of the client within the purchase process. There
are different payment methods such as L/C, D/A, D/P, T/T, M/T, CAD, Cash, etc. each
method has different advantages and drawbacks. It's necessary to check carefully to
18


settle on a suitable payment method. If payment is made by L/C, upon receipt of
documents sent by the seller, the bank opening the L/C will check. If the documents
are secured, the bank will pay, notify the buyer, invite the buyer to pay back to the
bank and receive a set of documents to pick up the goods. If exporting by quota, the
buyer will pay directly to the seller.
(vi) Delivery:
This is a crucial provision of the contract since it describes the exporter's
particular obligations and binds the parties to carry out their commitments. The money
may only be obtained once the exporter has delivered the products. Without this
clause, the contract will not be valid.
2.5.2. The custom clearance 
a. Customs documents include


Export customs declaration form.



An economic contract between the seller and the buyer.



If the buyer is required to pay the seller, commercial invoices or documents of
similar value will be required.



Other necessary documents include the C/O, cargo details, phytosanitary
certificate, declaration of transportation, customs certification, and border guard
declarations on transportation. (The Ministry of Finance, 2018)

b. The time limit for submission of customs declaration
Declarants are only permitted to register customs declarations if they have
sufficient goods at the time of inspection at least 04 hours before the means of
transport leave the country; for goods sent by express delivery service, at least 02
hours before the means of transport leave the country. (Law on Customs, 2015)
c. The time limit of customs declaration 
15 days from the date of registration. (Law on Customs, 2014)
d. Ascertaining the provenance of exported products

19

Customs offices must examine the contents of customs declarants' declarations,
documents in customs dossiers, and the results of an actual examination of
commodities. If there are any uncertainties about the origin of exported products,
customs offices will ask customs declarants to give paperwork and documentation
connected to the origin of exported goods, as well as check and verify the origin of
goods at the exporting goods' manufacturing establishments. (The Ministry of Finance,
2018)

2.6. SWOT analysis of dragon fruit export
2.6.1. Strengths
Dragon fruit is a drought-tolerant, easy-to-grow plant. With favorable climate
and soil characteristics, Vietnam, especially Binh Thuan is considered the province
with the most advantages in developing dragon fruit trees. 
Many farmers believed that dragon fruit is the most efficient "poverty
alleviation" tree. According to the Department of Agriculture and Rural Development,
developing dragon fruit brings many benefits to local agriculture such as using the idle
labor of farmers in the dry season, contributing to creating jobs and promoting rural
industries. Moreover, growing dragon fruit makes farmers use the household's land
fund better, diversify local product sources, and at the same time contribute to crop
restructuring and agricultural economic development (nhandan.vn, 2014).
For policies in dragon fruit export, in Chau Thanh district, Long An province,
the Duong Xuan Agricultural Service Cooperative has transitioned from traditional
dragon fruit agriculture to high-quality organic farming. Currently, the cooperative has
roughly 60 hectares of dragon fruit certified to VietGAP standards, with another 50
hectares of dragon fruit certified to VietGAP and 50 hectares of dragon fruit accredited
to GlobalGAP in 2021 (dangcongsan.vn,2021).
2.6.2. Weaknesses
In the contemporary context, the Covid-19 epidemic is affecting a number of
provinces in the South Central and Southern regions that grow dragon fruits, making
20

production, harvesting, and consumption of many agricultural items difficult. Dragon
fruit, for example, is a challenging product.
International trade agreements, tariff requirements are being progressively
reduced, while food safety, hygiene, and quarantine regulations are being prioritized.
As a result, quarantine, food safety, and hygiene restrictions to Vietnamese dragon
fruit shipments to China are a source of worry (ppd.gov.vn,2018).
Dragon fruit is cultivated under tight monitoring, starting with the selection of
kinds, tillage, pest control, types and doses of fertilizers, pesticides used, and so on, to
guarantee the appearance and quality of dragon fruit meets the stipulated standards.
Previously, China was thought to be an easy market for Vietnamese fresh fruit exports,
but from January 2019, China has required imported dragon fruit in particular, as well
as fresh fruits in general, to have the proper image. packaging photo, traceability
information in Chinese or English, including: name, origin, name or number of
packing factories.
Furthermore, since 2013, China has been cultivating a lot of dragon fruit to
compete with Vietnam. According to Mr. Mai Xuan Thin, CEO of the Red Dragon
Production Trading Service Co., Ltd., Chinese traders are investing in dragon fruit
farms in this country that are as large as 3,000-5,000 hectares (tuoitre.vn,2017).
2.6.3. Opportunities
Vietnam that joined the WTO in 2007 has been participating in bilateral and
multilateral free trade agreements (ASEAN - Korea, ASEAN - China, Free Trade
Agreements Vietnam - EU, Trans-Pacific Partnership, etc). This will be an opportunity
for Vietnamese goods in general and dragon fruit in particular to take advantage of the
opportunity to expand the market. Dragon fruit has many opportunities to enjoy the
policies of the state and partner countries such as 50% tax reduction when
participating in border trade (VietNam-China), import-export tax reduction under
Asian and Chinese early harvest programs, reduction taxes according to the schedule
after joining the WTO, etc.

China is considered the largest, and most potential export market for Vietnam's
fresh fruit (The Ministry of Industry and Trade, 2020). Within the framework of the
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ASEAN - China Free Trade Agreement (ACFTA), up to now, China has reduced taxes
on more than 8,000 items imported from Vietnam, including fresh fruits, opening up
many opportunities for businesses to access this large market. Since 1990, Vietnamese
dragon fruit has been exported to many countries in Asia, especially China with a
population of over 1 billion people, high consumer demand, easy access, and full
potential. 
The State attaches importance to agriculture and rural areas, especially
investing in agricultural extension work, promulgating many supporting mechanisms
and policies. In particular, the government always strives to accompany localities and
manufacturing enterprises, promote market development for Vietnamese dragon fruit
products, coordinate with overseas Vietnamese trade offices to seek and connect
prospective customers to import Vietnamese dragon fruit.
The increasing level of science and technology creates opportunities to improve
production and processing capacity. Breeding work is increasingly focused, creating
many new varieties of dragon fruit. Besides the traditional dragon fruit, Vietnam also
has the main product of red flesh dragon fruit. Our country also develops many
varieties of dragon fruit with pink and purple flesh, white flesh, and yellow flesh
dragon fruit with high nutritional content. In addition to dragon fruit, Vietnam can
widely export products such as dried dragon fruit, dried fruit, syrup, dragon fruit
snack, dragon fruit wine, dragon fruit ice cream, dragon fruit cake, dragon fruit bread,
etc. 
Consumers consider dragon fruit to be a nutritious, high-fiber fruit that is highly
competitive with other fruits of Vietnam, becoming a key export item of our country
due to more and more Scientific studies proving the benefits of dragon fruit. In
particular, dragon fruit powder, also known as pitaya powder, has high nutritional

value and is considered a tropical superfood (diendandoanhnghiep.vn, 2021).
2.6.4. Threats
Recently, Vietnamese dragon fruit has been under a lot of pressure because of
the competition of many markets in Asia such as Taiwan (China), Thailand, Malaysia.
Not only that, China, which used to be the main export market of Vietnam's dragon
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fruit, has now actively developed and expanded the area of dragon fruit growing in the
provinces of Guangxi, Guangdong, and Guizhou,... With China's advanced
technology, it is likely that Chinese products will have a higher yield than Vietnam's
and may dominate in dragon fruit exports to other markets (Tuoi tre.vn, 2018).
Not only that, in the context of the COVID-19 epidemic, the main export
market is China, which tightens quarantine for many items. In which, there are dragon
fruits that are closed at some border gates in a certain period. The sudden increase in
logistics costs also adds to the inadequacies for exports of this item. Along with that,
several dragon fruit growing provinces in the South Central and Southern regions are
being negatively affected by the pandemic, making production, harvesting, and
consumption activities difficult. Weather and pests are unpredictable and complicated.
The area and output of dragon fruit are high, but there is a lack of export
markets for the product, affecting the profits of growers. When dragon fruit is in the
season but lacks buyers, farmers are often forced to price. In addition, the risk of
reducing the size of the domestic raw material area because many areas of cashew are
degraded or converted to other crops such as rubber, coffee, pepper... with higher
economic efficiency.
The requirements on ensuring food safety and hygiene and technical standards
for dragon fruits in major markets are increasing. When the demand for domestic
consumption and export of dragon fruit increases, the requirements for quantity and
quality, the improvement of stable crop yield, and the improvement of dragon fruit
quality are also increasing day by day.

Another point worth noting is that despite a lot of recommendations,
Vietnamese enterprises still prefer to choose to export by the small-traffic route to
reduce pressure on procedures. However, this is a risky direction due to the tightening
of policies on import and export management in the direction of official channels to
limit small-scale exports and open roads. Since then, many products that meet the
standards but are not on the list of official imports have encountered many difficulties.
 

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CHAPTER 3: THE SOLUTIONS OF IMPROVING
EXPORT ACTIVITIES
In general, after thoroughly studying the activities of dragon fruit export in
Vietnam. We need to have specific solutions for their export growth and reduce risks
in both the production and export process. There are 10 suggested solutions for
improving and developing export activities:
(1) Enterprises should switch in the form of official quota trade to minimize the
phenomenon of price pressure or other risks in payment.
(2) Currently, Vietnamese dragon fruit has dominated the Chinese market, the
problem is that exporters should pay attention to maintaining the market as well as
increasing the value of exported fruits.
(3) Enterprises should build a separate brand for the Chinese market. When the
brand has been built, it is necessary to focus on exporting official quota trade and find
official distribution agents. Besides that, enterprises should not export branded fruit in
the form of border trade to avoid competing directly with their distributors.
(4) Exporters should increase the application of production scale according to
VIETGAP and GLOBALGAP standards to fully meet the regulations such as quality,
food safety, transportation, warranty...of Chinese Government.
(5) Businesses need to pay more attention to research and design specific

packaging for the Chinese market and prioritize the information on the package in
Chinese. Additionally, recruiting staff who are fluent in Chinese to be able to deal
directly and learn market information as well as relevant regulations of the Chinese
importers to be more proactive in doing business with this potential market.
(6) Enterprises should minimize unnecessary mistakes in the export process of
fruits. Specifically, information on certificates of quarantine, certificates of origin
needed to match the actual export shipments in order to avoid the relevant authorities
of China not accepting customs clearance due to the mistakes on documents while the
export goods have fully met the requirements of the Chinese side.
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