SME

By Ee-Hui Tan | April 30, 2025

Exports of tropical fruit are worth billions of dollars to Vietnam’s economy. Can Vietnam’s agriculture sector overcome cold-chain logistics challenges – and competition from countries like Thailand – to take Southeast Asia’s export crown?

• Vietnam’s fruit and vegetable exports tipped the scales at around $7.1 billion in 2024, a major leap from the previous year.
• With Vietnam’s perishable and cold-chain sector rising rapidly in value, exporters are investing heavily in temperature-controlled logistics to meet demand for both volume and quality.
• One major focus is the lucrative China market just across the border. To combat logistics challenges, exporters are switching from ground to air cargo shipping to make sure their fruit arrives in perfect condition.

If you visit Southeast Asia, you’ll notice tropical fruit everywhere: on trees, in bustling street markets, and on your breakfast table. Walk through any fresh market in Bangkok, Hanoi, or Penang, and you’ll find the vibrant colors and scents of durian, banana, dragon fruit, mango, lychee, and passionfruit. 

In Vietnam, a rich agricultural sector and strategic location have placed the country firmly on the map as a leading exporter of perishable goods like fruit, vegetables, and seafood. With agri-exports a major source of revenue, one critical sector evolving in step is cold-chain logistics.

Vietnam’s cold-chain market was valued at USD 1.5 million in 2024. It’s projected to grow at a CAGR of 13.6% to reach USD 5.2 million by 2033. However, to unlock Vietnam’s full export potential and edge out the competition, the agriculture sector must address a unique set of challenges.

Rising competition for China’s perishable market

Both challenges and opportunities are playing out in Vietnam’s largest target market: China. Chinese demand for fresh produce continues to soar, intensifying competition among Southeast Asian countries for sought-after products like durian. In 2024, China imported a record USD 6.99 billion worth of durians, with Thailand leading at USD 4 billion. 

However, Vietnam is rapidly gaining ground, with record volumes of fruit exports in 2024 largely driven by durian sales. In total, the country’s fruit and vegetable sector generated USD 7.1 billion in export revenue that year, highlighting the substantial contribution of the perishable export sector to Vietnam’s economy.

With China's growing demand for premium perishables, Southeast Asian exporters are intensifying efforts to strengthen supply chains, meet stringent import regulations, and differentiate themselves through branding and marketing. 

But despite demand, fruit growers and suppliers face some tricky barriers to successful sales. One major hurdle facing exporters is China’s tightened control on durian imports following the discovery of shipments contaminated with a harmful chemical. In the first months of 2025, Vietnam saw a 43% drop in fresh produce exports to China as a result. 

With major economic knock-on effects, Southeast Asian countries are scrambling to address the problem. In Thailand, the Commerce Minister appealed to Chinese diplomats to ease export regulations and implement faster customs clearance, additional screening equipment, and more staff at checkpoints to handle large volumes of goods during the fruit season.

With fruit from Vietnam and Thailand being turned away at the border, businesses are seeking up-to-the minute guidance on regulations compliance and updates on the evolving situation at border control. To future-proof their businesses from further disruption, near-real-time visibility into the delivery journey is key. 

Vietnam’s logistics shift: Surge in air cargo transportation

Vietnam is boosted by its agricultural strengths and proximity to China, but perishable exports require an ultra-efficient logistics network to succeed. Currently, businesses rely on a mix of trucking, rail, and air transport. 

Cross-border trucking is often the preferred mode of transportation for this journey, but road congestions and high temperatures, especially during the peak export season in June, can cause issues. In response, exporters are turning to air freight to move perishables quickly, especially over long distances.  

According to Seabury, Vietnam’s air cargo volume for perishables to China surged by 42.5% in 2024, accounting for 78% of all air cargo volume. This underscores the critical role air freight forwarding services play in making sure these temperature-sensitive products maintain their integrity.

This shift from ground to air cargo highlights the growing need for speed, reliability, and shipments that require special handling. As market demand for fresh produce spikes, Vietnamese agricultural exporters need to adopt a flexible, multi-modal shipping strategy, balancing truck, air, and sea freight. 

The right combination of air cargo and advanced cold-storage solutions can help importers and exporters preserve the tip-top quality of produce and deliver on time.

Challenges in perishable logistics

Despite the thriving market for Vietnamese perishable goods in China, logistical hurdles can threaten its export growth potential. If Vietnam wants to strengthen its position as a key supplier in the global perishable goods trade, addressing these challenges will be crucial.

One of the most pressing issues is limited cold-storage capacity, which creates bottlenecks in handling temperature-sensitive products. This increases the risk of spoilage and delays, particularly as modern retail expansion and shifting consumer preferences drive demand for chilled and frozen foods.

At the same time, infrastructure development has not kept pace with rising trade volumes. This has led to inefficiencies in transportation and storage.

Stricter import regulations in China have added another layer of complexity for exporters. As border inspections on agricultural imports intensify, businesses have to spend extra time focusing on traceability, product quality and testing, and adhering to stringent food safety protocols. 

Strengthening perishable logistics with advanced solutions

To maintain export momentum, Vietnam needs to invest in specialized cold-chain infrastructure, efficient transport, and streamlined customs processes. At FedEx, we offer tailored solutions to address these needs.

Our innovative temperature-controlled solutions play a vital role in ensuring product integrity. CSafe containers offer an active compressor system that maintains stable temperatures between 2°C and 8°C or 15°C and 25°C, with single-pallet (RKN) and multi-pallet (RAP) options. We also provide a dry ice-cooled option, ideal for frozen and chilled shipments.

Our inbound express warehouses maintain controlled temperatures from -10°C to 25°C, with flexible options for different types of perishable shipments.

Beyond transportation, exporters need regulatory and storage support. FedEx customs clearance assistance helps exporters secure import permits and licenses, reducing delays and ensuring compliance with international standards. 

A growing opportunity for Vietnam

As Vietnam’s perishable goods export sector grows, strengthening cold-chain logistics and infrastructure will be crucial to maximizing opportunities. By investing in infrastructure and technology, FedEx is committed to supporting businesses and helping Vietnam solidify its role as a key player in Southeast Asia’s perishable trade.

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