Floriculture Market in Vietnam: Analysis of Export Trade, Technological Status, Trends and Forecasts (2017-2022)
Vietnam is considered as the ‘golden land’ for developing tropical and temperate flowers, due to the fertile soil and favorable climatic conditions. The exports of cut flowers to all countries are projected to register a CAGR of 11.2% during 2017-2022 (the forecast period). Japan has been the largest importer of flowers from Vietnam for the past several years, which is expected to continue in the future. In Japan, the current scenario suggests that the flowers’ production is anticipated to decrease by 50% in the next 5 years, and turn import-dependent on Vietnam for the same. Thechrysanthemums of Vietnam are the largest category of cut-flowers that are being exported to other countries, and with the sector being shaped, the share of chrysanthemums is likely to improve in the near future. Models of planting high-quality lily, orchids, and roses in Tay Tuu commune Chuong My, Dan Phuong are offering new opportunities to farmers, to enhance their overall sales revenue and profits. In Vietnam, Da Lat city has the largest area to cultivate and export flowers, with 3,500ha. Moreover, the city accounts for 40% of the area and 50% of the output of the country.
The favorable agro-climatic conditions for rose, chrysanthemum, and other ornamental plants is the major economic driver for the Vietnam floriculture market. The government policies and support from the foreign investors help to export cut flowers at lower prices, which is fueling the market production. Irrespective of all the drivers and positive trends, the growth of floriculture market is still being bogged down, due to various factors, such as:
• Lack of proper awareness on cultivation measures and marketing of flowers
• High cost associated with the adoption of modern technology
Export Trade Analysis:
The floriculture market in Vietnam witnesses a considerable amount of exports and chrysanthemum lead the export charts of Vietnam in 2016 with an export of cut flower worth USD 23204.98 million.. Agrivina, a flower producer in Vietnam, has headquarters in Da Lat. The company produces close to 150 million cuts a year of various flowers. Of these, 70% gets exported to Japan, China, and Southeast Asian countries. There is also export of cut flowers from Vietnam to the other countries, such as, Australia, the United States, and India. In 2016, orchids were the major cut flower exporters, with an export of worth USD 5135.97 million, and Japan was the major importer.
What the report offers:
• A close insight about the floriculture market in Vietnam and its growth prediction.
• An insight about Vietnam floriculture export with prices and market trends, government regulations, growth forecast until 2022, etc.
• Market dynamics including drivers, restraints and Porter’s five force analysis.
• An insight to the current technological status and future technological needs of the Vietnam floriculture market.
• An overview of the current government policies and their strategies, to promote floriculture market in Vietnam.
HortEx Vietnam, an exhibition, is likely to take place in 2018 in Vietnam, The exhibition is expected to cover all segments of horticulture and floriculture. Being supported by the Ministry of Agriculture and Rural Development and VinaFruit (Vietnams Fruit & Vegetable Association), this exhibition is likely to instill momentum in the Vietnam floriculture sector.