Fresh fruit exports to China are anticipated to increase by at least 10% this year based on better land transport flow as cross-border trade facilitation improves.
According to permanent secretary for commerce Keerati Rushchano, this year the transport of fresh fruit across land borders is expected to increase significantly, with durian accounting for 80-90% of the transported fruit.
Exports of fresh fruit to China are estimated at 2.5 million tonnes worth US$5.59 billion this year.
Last year, fresh fruit exports to China experienced transport difficulties across land borders, particularly during China's strict Covid-19 control measures, leading the country to rely more on sea transport.
As a result, fruit exports to China tallied only 2.25 million tonnes in 2022, up by 2.7% from the previous year, worth $5.04 billion, down by 2.5% from $5.17 billion in 2021.
Mr Keerati recently led senior officials of the Commerce Ministry to survey fruit transport routes and procedures at Huu Nghi international checkpoint and Dong Dang railway station in Lang Son province, Vietnam.
The survey was part of the Commerce Ministry's proactive measures to prepare for the expected increase in domestic fruit production from April to August.
The Commerce Ministry has initiated discussions with senior officials in Lang Son province to request their cooperation facilitating the export of Thai fruits through the border and cross-border trade at Huu Nghi checkpoint and Dong Dang station.
These checkpoints are crucial transit hubs for the transportation of Thai fruit before reaching China's Youyi Guan checkpoint.
Dong Dang railway checkpoint is a connection point to China's Pingxiang railway checkpoint, which is about 171 kilometres from Hanoi and about 1 km from the Huu Nghi checkpoint.
Thailand uses this railway checkpoint as a gateway for exporting fruit, mostly durian, to the Chinese market.
On a daily basis, there are five trains that export to China and five that come from China. During the fruit season in 2022, around 10-20 containers of durians were transported daily through this railway checkpoint to China.
According to Commerce Ministry data, China imported fruit worth $14.6 billion in 2022, with Thailand being the top exporter of fruits to China.
The top five fruits imported by China are Cavendish bananas, young coconut, durian, dragonfruit and longan. China imported 95% of its durians from Thailand and 523,000 tonnes of young coconuts last year.
Thailand exports fruits to China mainly through three channels: by sea (51%), by land (48%) and by air (0.54%). Land transport is the most popular route among Thai exporters given low transport costs.
This year the ministry set a target for fresh and processed fruit exports to reach 4.44 million tonnes, up 10% both in quantity and value from 4.04 million tonnes worth 263 billion baht last year.
According to Mr Keerati, the ministry is working proactively to find solutions to the transportation problems of fresh fruits via land borders, which will increase in the future as the volume of export grows.
They are proposing a working group involving Thailand, Vietnam and China to discuss and solve any transportation problems that may arise, and to have direct communication via a hotline between officials in charge for more efficient problem-solving.
Doan Thu Ha, vice-chairman of the People's Committee of Lang Son, said the province has accepted the proposal to establish a trilateral working group to solve problems related to the cross-border transportation of goods and to find ways to expand cooperation in trade and investment between Thailand and Vietnam in the future.
Chaichan Chareonsuk, chairman of the Thai National Shippers' Council, said the transport of fresh fruit over land is expected to increase significantly this year after the situation returned to normal.
The Commerce Ministry has worked actively and collaborated with the private sector to coordinate with relevant agencies for more convenient and efficient cross-border transportation, as transporting fresh fruits requires speed to maintain quality.
He said the faster it reaches consumers, the better the product quality.
