Vietnam broadens bird's nest trading with China, seeks market expansion

Rewritten Article:

Vietnamese Bird's Nest Industry Ventures into the Chinese Market

It's full steam ahead for Vietnamese bird's nest producers, as 13 of them get an official green light to sell their products to China—a crucial step towards strengthening agrarian trade relations between the two countries.

This is no small feat, considering the rigorous protocols implementing quarantine and inspection requirements for edible bird's nests exported from Vietnam to China have been in place since 2022.

In a recent gathering in Hanoi, Duong Tat Thang, head of the Livestock Production and Animal Health Department under the Ministry of Agriculture and Environment, shared that domestic businesses have started to make inroads, introducing 'Vietnamese-made' bird's nest products to the Chinese market.

In the lead-up to the event, more than four tonnes of processed bird's nests and millions of products valued at over $4 million have already been exported.

More than 70 businesses are currently investing in building and upgrading processing facilities that adhere to export standards. Meanwhile, over 4,000 swiftlet birdhouses undergo disease surveillance, and 220 samples are tested for food safety indicators.

In a recent development, Vietnam's Ministry of Agriculture and Environment, and China's General Administration of Customs signed a new protocol on April 15th. This expanded agreement now covers both refined and raw bird's nest products, replacing the 2022 protocol. Industry insiders predict this shift will create more chances for Vietnam's bird's nest industry to flourish in the world's largest consumer market.

However, some experts argue that current export volumes are still relatively meager compared to Vietnam's production potential and China's expansive demand, especially considering Vietnam's late arrival in the scene, which has left Chinese consumers less acquainted with the Vietnamese brand of bird's nests.

Staff at Thanh Hóa-based Xứ Thanh Bird's Nest Production and Trading Co., Ltd. inspect harvested bird's nests. - VNA/VNS Photo

Furthermore, the pandemic's impact on the Chinese economy coupled with higher production costs, outdated technology, and less competitive product design have limited Vietnam's competitiveness compared to established exporters.

Competition within the local market also can't be overlooked, as cheaper imports from Malaysia and Indonesia are flooding the Vietnamese market, making it tough on domestic producers.

Despite these hurdles, increased investment in the sector spurred by several large-scale firms applying advanced technologies in farming, breeding, birdhouse construction, refining, and processing has been observed. Additionally, quality inspection centers and traceability systems have been put in place to meet export requirements, while farmers have received enhanced training in swiftlet farming and harvesting techniques.

Cooperative models are gradually being developed though; however, the industry remains vulnerable due to its disorganized nature. Most swiftlet farms operate without a coordinated plan or industry-wide branding, and many swiftlet birdhouses are yet to be recognized as official properties. There are still no standardized construction or operational guidelines, and quality management and traceability practices often remain inconsistent.

To seize this golden opportunity created by the new protocol, Thang emphasized the importance of connecting farming with scientific research and innovation, diversifying product lines, and focusing on brand development.

He also advocated for creating a closed value chain from production to consumption, with the leading role belonging to processing enterprises setting industry-wide standards and providing market insights.

"Deep processing and strategic branding are key to boosting the value of bird's nest products," stated Thang. "The new protocol is a significant leap forward. However, for Vietnam to establish a strong presence in the Chinese market, we need to amp up product quality, build consumer trust, and underscore the credibility of our bird's nest brands."

Latest figures show that 40 out of Vietnam's 63 provinces and cities have swiftlet birdhouses, amounting to a grand total of 29,320 across the nation. Kien Giang Province claims the top spot with 2,981 birdhouses, followed closely by Tien Giang Province (1,732), Dak Lak Province (1,725), and Binh Thuan Province (1,680). - VNS

Dương Tất Thắng, director of the Department of Livestock Production and Animal Health, speaks at the conference on May 8. - Photo tracuuquyhoach.com

Key Insights:

Expanding Market Share: The Chinese market, which accounts for 80% of the global demand for bird's nests, presents a remarkable opportunity for Vietnam's bird's nest industry to broaden its market reach.
Stable Demand: China has a consistent and high demand for bird's nests, creating a favorable environment for Vietnamese producers to boost sales and increase brand value.
Economic Growth: Investing in the bird's nest sector can stimulate domestic growth in Vietnam by attracting more investment and boosting production.
Stringent Regulations: To succeed in the Chinese market, Vietnamese producers must navigate various regulatory hurdles, including stringent food safety and quarantine requirements.
Competitive Market: A sizable, competitive market demands that Vietnamese businesses prioritize innovation and invest in high quality and efficient production to meet the expectations of Chinese consumers.
Quality Improvement: To win over Chinese consumers, Vietnam must prioritize improving the quality of its bird's nest products to align with the high standards expected in the Chinese market.

In 2024, Vietnam's bird's nest industry anticipates further growth with the new protocol that covers both refined and raw bird's nest products, potentially expanding their market share in the world's largest consumer market.
The Chinese economy, although impacted by the pandemic, continues to exhibit a consistent and high demand for bird's nests, creating a profitable opportunity for Vietnamese producers to enhance sales and boost the value of their brands.
Economic growth in Vietnam can be stimulated by investing in the bird's nest sector, attracting more investment and boosting production to meet the increasing demand from China.
Thebird's nest industry faces several regulatory hurdles, such as strict food safety and quarantine requirements, to comply with Chinese market standards and export indicators.
To remain competitive in the Chinese market, Vietnamese businesses are motivated to deliver high-quality products that align with the accepted standards while embracing innovation and investing in efficient production methods.
To capture the attention of Chinese consumers, the quality of Vietnamese-produced bird's nests must be consistently improved and made to meet the high expectations of this discerning market.
In the face of competitive imports from Malaysia and Indonesia, Vietnamese businesses can also explore diverse product lines to differentiate their offerings and gain an edge in the local market.
Developing brand awareness is crucial for the bird's nest industry to establish a strong presence in both the domestic and Chinese markets, necessitating efforts in strategic branding and consumer trust-building.
In the pursuit of brand growth and market expansion, the bird's nest industry must adopt a closed value chain approach, with leading processing enterprises setting industry-wide standards and providing valuable market insights while fostering coordination among swiftlet farms and developing coordinated plans.