VINAGRI News - Vietnam’s coconut industry is seeing new dynamics as low-cost Thai coconuts look to penetrate the market, competing directly with Indonesian imports, amid soaring domestic prices driven by surging processing demand.
Thailand eyes Vietnam as new export market
On September 29, Mr. Cao Bá Đăng Khoa, Vice Chairman and General Secretary of the Vietnam Coconut Association (VCA), confirmed he recently met with the Thai Trade Counselor in Ho Chi Minh City to discuss connecting Thai coconut suppliers with Vietnamese processing plants.
A coconut collection hub in the Mekong Delta
According to Mr. Khoa, coconut producers in Thailand’s provinces bordering Cambodia are facing output bottlenecks and falling prices due to border tensions, prompting the search for new export destinations.
This situation has indirectly boosted Vietnam’s coconut exports to Cambodia, which reached USD 3.6 million in the first seven months of 2025, a 681-fold increase year-on-year.
Thai coconuts offer logistics and processing advantages
Thai coconuts have a logistics edge over other suppliers, with shipping times of under 10 days by sea, allowing Vietnamese factories to use both coconut meat and water for processing. In contrast, Indonesian coconuts - the dominant import source - are typically used only for coconut meat extraction.
Mr. Khoa described Thai coconuts as fresh, high-quality, and competitively priced, making them an attractive alternative supply source.
Domestic prices ease after reaching record highs
Earlier this month, domestic dried coconut prices in provinces like Vĩnh Long and Cần Thơ surged to VND 230,000 - 240,000 per dozen (12 nuts), up sharply from VND 100,000 - 130,000 at the start of 2025.
Prices have since eased slightly to around VND 16,000 - 17,000 per nut (for coconuts weighing 600g or more). Larger varieties from the Mekong Delta -weighing 1.2 - 1.8 kg each - remain in strong demand and command premium prices.
Mr. Khoa explained that the recent price decline is due to greater domestic supply during the rainy season and rising imports, but noted that current levels still provide solid profits for farmers while helping processors reduce input costs.
Imports surge nearly 19-fold
In the first seven months of 2025, Vietnam imported USD 31.2 million worth of coconuts, up 1,873% year-on-year, with Indonesia as the main supplier.
Coconut cultivation is expanding rapidly in Vietnam thanks to its high economic returns and low maintenance requirements. However, uncontrolled expansion has created challenges such as the use of non-standardized varieties, which can hinder export opportunities and lower market value.
Outlook
As Thai coconuts look to establish a foothold in Vietnam’s market, competition with Indonesian suppliers is expected to intensify. Meanwhile, stable domestic prices and rising processing demand continue to support farmers and manufacturers. To sustain growth, industry experts recommend Vietnam focus on standardized seed selection, sustainable farming, and diversified sourcing strategies to ensure long-term supply security and export competitiveness.
NPK/ Vinagri News
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