Vietnam Floriculture Market - Segmented by Type of Cut Flowers - Growth, Trends, and Forecast (2018 - 2023)
The cut flower exports from Vietnam are projected to register a CAGR of 7.8% during the forecast period, increasing from USD 44,392 thousand in 2017 to an expected USD 69,373 thousand by 2023. The Vietnamese market for floriculture is gaining pace and the production of flowers is increasing rapidly. Besides, experts in the agricultural industry proclaim that Vietnam has a lot of potential in becoming a leading exporter of floriculture products.
Flowers are cultivated in Ngocha, Quang an, Nhat tan, Tay tuu, and Vinch tuy village of Hanoi; also, at Dang hai commune, An hai suburb in Haiphong, Go vap, and Hoc mon districts in Ho Chi Minh City; Districts 11 and 12 in Dalat. These areas cover 70-80% of total land area under flowers. Flower production gives high economic return, which is 10-20 times more in comparison to rice. Hence, farmers in these areas have better living standards than others.
The Fastest Market Growing Flower in Cut Flowers - Chrysanthemum
The export of chrysanthemums by Vietnam to the rest of the world is projected to witness a CAGR of 11.7% during the forecast period, with the value USD 26,082.40 thousand in 2017. The chrysanthemums of Vietnam are the largest category of cut-flowers exported to other countries, and with the sector taking shape, the share of chrysanthemums is likely to improve, during the forecast period. Moreover, this flower is expected to register the second highest CAGR during the forecast period, among all the cut flowers. The popular varieties/species of chrysanthemums include - Chrysanthemum morifolium, C. indicum, C. leacanthemum, Taiwan yellow, Japan yellow, Xuxi chrysanthemum, etc.
Favorable Agro-climatic Conditions for Rose, Chrysanthemum, and Other Ornamental Plants
Vietnam has two different climatic regions, namely the subtropical region in the north and the tropical region in the south. Moreover, there are regions with particular temperate climate. Lam Dong province is considered the ‘golden land’ for developing tropical and temperate flowers in the country, due to its ideal conditions, such suitable day and night temperatures, and enough flat land for large-scale production. Vietnam accounts for a number of river deltas with fertile alluvial soil, which is suitable for large-scale production of cut flowers. Owing to varied climatic conditions, tropical, subtropical, and temperate flowers can be grown throughout the year, in the country
High Cost of Adoption of Modern Technology
Commercial cut flower cultivation requires specialized nurseries armed with superior planting material, glass house cultivation, and proper irrigation facility. Glass houses with proper irrigation facility also need a high upfront and operating expenses. In order to utilize a greenhouse to the best of its ability, it’s necessary to invest in a kit, or in supplies that will have a good lifespan and proper characteristics for the cut flower to grow. Specialized nurseries with effective in vitro production technology require a huge investment, which is difficult for farmers to procure.
Key Developments in the Market
- Jan 2016, According to ITC, Vietnam is trying to expand the export of Da Lat flowers from the current 10% output to 30% by 2020.
- Mar 2018, The Vietnam Floriculture industry provides many opportunities for growers and suppliers as the government of Vietnam has provided the package of USD 4.40 billion for developing hi-tech agriculture.
Reasons to Purchase the Report
- To have an understanding of the fastest growing regions in the Vietnam floriculture and growth trends during the forecast period
- The report outlines drives, restraints, and trends that are currently affecting the market
- 3 months analyst support on the study scope provided.
- Market estimate sheet to be provided (in Excel).