Indochina farmers are increasingly focused on capturing the booming Chinese durian market, which has become a significant driver of economic growth in the region. China has emerged as the largest buyer of durians, importing nearly RM200 billion (US$46.7 billion) worth of the fruit, making it a crucial market for Indochinese exporters [42d6007a]. Vietnam, in particular, has seen its durian export turnover reach US$2.7 billion (RM11.6 billion) by September 2024, reflecting a robust demand for this unique fruit [42d6007a].
HSBC forecasts a staggering 400% annual rise in durian demand in China, highlighting the potential for further growth in the sector [42d6007a]. Thailand remains the primary exporter to China, with exports valued at RM11.9 billion (US$2.76 billion), while Vietnam aims to achieve RM14 billion (US$3.5 billion) in durian exports in 2024 [42d6007a].
In addition to Vietnam and Thailand, Cambodia and Laos are also ramping up their durian production. Cambodia produces approximately 36,600 tonnes of durians across 5,000 hectares, while Laos has set aside 20,000 hectares for durian plantations, targeting an output of 24,300 tonnes by 2029 [42d6007a]. However, growers are wary of challenges such as climate change and a potential supply glut that could affect prices and market stability [42d6007a].
The Regional Comprehensive Economic Partnership (RCEP) is expected to enhance trade in the region by lowering tariffs, which could further benefit durian exporters [42d6007a]. Laos is also investing in RM3 billion logistics facilities to improve the distribution of its agricultural products, including durians, thereby increasing competitiveness in the international market [42d6007a].
As Southeast Asian countries navigate the complexities of the durian market, the interplay between supply, demand, and international trade agreements will be crucial in shaping the future of this lucrative industry [42d6007a].