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NZ’s fruit wins in competitive Vietnamese produce market
New Zealand apple exporters are trying to capitalise on the increasingly wealthy Vietnamese consumer, while elbowing out global competition.
As this season’s New Zealand apple crop is sent off to its international markets, exporters are hustling to benefit from the relationship with the Socialist Republic of Vietnam, as both “friends” and business partners.
Vietnam is now the fastest-growing economy in Southeast Asia, and two-way trade with New Zealand is valued at $2.68 billion, after growing 40 percent in the past five years.
Apple exporters look to Vietnam as economy grows
Horticultural imports and exports between the two countries have been largely complimentary, due to climactic conditions.
Last year, New Zealand fruit companies generated $172 million in exports to Vietnam for mostly apples, then kiwifruit and cherries, according to Ministry for Primary Industries data.
New Zealand apple growers are relying on producing a premium product, to tempt consumers with increasing spending money in Vietnam. Photo: Susan Murray/RNZ
Hawke’s Bay-based Mr Apple, owned by Scales Corporation, exported about a quarter of the country’s $932m apple export trade each year.
Head of sales and marketing, Ben McLeod said Vietnam’s economic growth had been phenomenal.
“Many people say Vietnam is like the new China just maybe 10 years behind,” McLeod said.
“It’s seen rapid growth in the last 10 to 15 years. It’s come from what was a poor to lower income country to now a lower to middle income country.
“And so we’ve seen a real rise in demand for New Zealand goods because they can afford them right now.”
Vietnam PM Phạm Minh Chính and PM Christopher Luxon during Vietnam diplomatic visit celebrating 50 years of diplomatic ties in late February. Photo: Giles Dexter/RNZ
McLeod said several free trade agreements between New Zealand and Vietnam put the country in good stead with other rival fruit markets, namely the United States.
“Free trade agreements are all important to try and help us get a little bit of leverage where we can, because we still have to compete. We have to compete with the likes of Chile and South Africa, particularly in the Southern Hemisphere window.
“And then a bit of overlapping from Northern Hemisphere when there’s a bit of a United States fruit still floating around.
“So we have to compete on the international stage. And market access is everything for us, right?”
Nelson apple exporter Heartland Fruit sent its first container of fruit to Vietnam in 2012, under its Luv’ya brand.
Since then, its apple exports to Vietnam soared to more than 100 containers in 2024, to the value of $7.83m.
Fruit at Mr Apple’s Meeanee Orchard near Napier is getting picked, packed and shipped off, as the apple export season begins. Photo: SUPPLIED/Mr Apple
Heartland Fruit sales and marketing manager Brendon Osborn said Vietnam’s population was becoming increasingly wealthy, marked by the rise of large locally-owned retail super-malls targeted at medium and high income shoppers.
“It’s become very competitive and I think that’s because there’s just a huge influx of apples into that market,” Osborn said.
“I think we’re trying to differentiate ourselves from the rest by providing the trademark varieties, aiming for the premium import segment, so the quality’s got to be tip-top. And if anything, they’ve become more demanding in the last couple of years on quality.”
Osborn said fruit production in other Southern Hemisphere markets was generally cheaper than in New Zealand.
Industry-owned company Prevar, in Hawke’s Bay, was set up to develop and commercialise apple and pear varieties, for licensee growers.
Prevar chief executive Tony Martin – formerly New Zealand Trade and Enterprise’s trade commissioner and consul general to Vietnam – said there was still room for apple exports to grow further into the market of 100 million people.
But he said companies would need to double down on investments in marketing, fruit quality and maintaining in-market contacts.
“It’s very, very competitive,” Martin said.
“New Zealand’s not a scale producer. We have made ourselves successful through quality and premium products, so we can’t compete on volume, but we can compete on quality.
“So New Zealand has to stay focussed on premium and it’s got to stay focussed on innovation and doing stuff that stands us apart from other competitor countries.”
Harvest of Posy apples is under at Mr Apple’s Meeanee orchard near Napier. Photo: SUPPLIED/Mr Apple
Ben McLeod of Mr Apple echoed Martin, and said companies had to continue to tell the unique New Zealand story.
“We’ve just got to keep flying the flag high and we’ve got to remain optimistic and positive,” he said.
“We’ve got the best crop we’ve seen out there since 2018 and we’ve just got to keep promoting and selling the dream to our customers offshore that we’re here for the longer term.”
Another competitor, fresh produce giant T&G Global benefited from a business deal to expand distribution of its apples into Vietnam during the diplomatic visit led by Prime Minister Christopher Luxon in late February.
Signed too, was a comprehensive strategic partnership with the republic, making New Zealand one of just 12 countries to hold the high level partnership with Vietnam.
Having just returned to Aotearoa from the visit to Vietnam led by Prime Minister Christopher Luxon in late February, New Zealand’s new Trade and Investment Minister of State, Nicola Grigg told Parliament New Zealand was well-placed to capitalise on Vietnam’s growing demand for high-value food and beverage.
“As Vietnam gets wealthier, Vietnamese people want to buy high quality products from around the world and we, of course, have some of the best food and beverage producers and innovative businesses around,” Grigg said.
“The more we trade with the world, the more we grow our economy, which translates to more jobs, higher incomes and more money in the back pocket of everyday New Zealanders.”
Vietnam’s economy had grown by about five percent each year, for more than two decades.
Agriculture was important to Vietnam, accounting for about 12 percent of its GDP and employing about 27 percent of the labour force – but also to New Zealand.
rnz
The chief executive of the Parliamentary Service is confident there will be enough room to accommodate the increased number of MPs and their staff coming into Parliament.
On current numbers, up to 131 MPs could be sitting in the Chamber following the election, brought on by a record overhang result.
Clerk of the House of Representatives Dr David Wilson told the Spinoff that currently the debating chamber had enough chairs to seat 124 MPs – including the Speaker of the House – and work was being done to accommodate more by altering the seating arrangement.
In a statement, Parliamentary Service chief executive Rafael Gonzalez-Montero said planning for a larger Parliament had been going for “some time”.
“Now that the election results have confirmed an increase to the number of members we are looking at several options.
“We are confident we will be able to accommodate all members within the Chamber.”
VNP / Phil Smith
Gonzalez-Montero said office accommodation for members and their staff would be “stretched” for a short time, but the new Members’ Building was only a few months away from “practical completion”.
That building – located behind Parliament – was due to be ready to occupy in April next year and had capacity to accommodate around 30 backbench MPs.
“All members should be in fit-for-purpose accommodation from that point,” Gonzalez-Montero said.
Following the 2023 election, 123 MPs sat in the Chamber – a record number at the time. That decreased to 122 following the resignation of National MP Judith Collins.
Collins held the seat of Papakura and stepped down in May and Parliament voted against holding a by-election because it was too close to the election.
The election result also meant high-ranking National Party MPs like Chris Bishop, Paul Goldsmith, Nicola Willis and Gerry Brownlee – Speaker of the House and an MP for 30 years – would likely not make it back into Parliament.
Only resigning or retiring MPs were permitted to give a valedictory speech meaning none of them would get the chance to give a valedictory statement.
Asked if their would be special allowances for valedictories, Wilson said in a statement that normally only MPs were allowed to speak in the House but the House could suspend its own rules or temporarily alter them.
“It could do so to allow former members to address the House.”
Wilson said no such arrangements could be made until the next Parliament opened and members sworn in.
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