The Netherlands Entrepreneurial Development Bank (FMO) has signed its first cooperation agreement in Asia’s fruit processing and export sector, allocating $20 million to Vietnam’s Nafoods for the 2025–2030 period. The investment will support the expansion of production capacity, product diversification, and value chain upgrades.
“This partnership is aligned with FMO’s strategy to expand into more agricultural subsectors and support farmers and sustainable businesses,” said Bas Rekvelt of FMO. Ingrid Korving, Netherlands Agricultural Counsellor in Vietnam, added that “the collaboration today between FMO and NaFoods Group will contribute to a safer, more sustainable and competitive Vietnamese horticulture sector in the international market.”
Vietnam fruit industry overview
Vietnam’s fruit and vegetable area reached 1.3 million hectares in 2024, up from 1.1 million hectares in 2019. The Mekong Delta supplies around 70% of national output, with the Central Highlands and northern provinces producing additional crops such as durian, mango, passion fruit, citrus, pineapples, and coconuts.
Export revenues reached $7.15 billion in 2024, with durian alone accounting for nearly $3.3 billion. The government targets $10 billion by 2030, focusing on six crops with billion-dollar potential: durian, passion fruit, bananas, pineapples, coconuts, and mangoes.
Despite export growth, processed fruit accounts for only 12–17% of the annual 31 million tons harvested, with most exports remaining fresh or semi-processed. Post-harvest losses are estimated at 30–35% due to limited cold-chain capacity and fragmented logistics. Logistics costs average 20–25% of product value, compared with a global average of 14% and lower levels in regional competitors such as Thailand.
Nursery systems are also underdeveloped, with many growers relying on informal propagation that reduces yields and increases pest and disease risk.
Sector development
The FMO–Nafoods agreement is intended to support the modernization of fruit supply chains through investment in processing and sustainable practices. Nafoods has outlined goals including digitalized production systems, expansion in passion fruit seedlings, and growth of its consumer brand.
Vietnam’s fruit sector continues to expand its presence in global markets, with Europe, China, and the US among the leading destinations. The partnership reflects ongoing efforts to move from volume-driven exports toward higher-value, processed products supported by modern infrastructure.
Source: MLVVN