In the first quarter of 2025, only 30 durian shipments from Vietnam successfully crossed the border into China — a sharp decline from 80 shipments during the same period last year. This 60.9% year-on-year drop signals a growing wave of rejections at the border, despite China remaining Vietnam’s largest trading partner for fruit exports.
The downturn is largely attributed to China’s tighter customs enforcement, particularly around Auramine O residue limits and new traceability requirements. As Vietnam grapples with the fallout, a deeper question emerges: can current domestic regulations adequately support both local exporters and meet China’s evolving standards?
To navigate these headwinds, Vietnamese durian exporters are under pressure to quickly recalibrate their production systems. But not all players — especially smaller firms — have the tools, resources, or guidance to make that shift effectively.
Highlights
- Uneven Industry Response Highlights Capacity Gaps
- Vietnam Risks Losing Market Share
- Regulatory Lag Deepens Mismatch With China
- Traceability as the Industry’s Safety Net
- Enforcing Laws with Strategic Diplomacy
- A Crisis — or a Strategic Inflection Point?
- Toward a Value-First Export Model
- Conclusion: Vietnam’s Durian at a Crossroads
Uneven Industry Response Highlights Capacity Gaps
According to Mickaël Driol, CEO of Mekong Partners, Vietnamese exporters are reacting at different speeds and scales.
“Larger, integrated exporters quickly tightened pre-export testing, segregated compliant lots, and sought formal recognition of growing-area and packing codes to avoid costly rejections,” he explained.
In contrast, smaller traders have either suspended their shipments or rerouted them back into Vietnam, opting to resell in lower-value markets where compliance costs are lower. For many, the financial impact has been steep. Despite some attempts to recoup investment, small-to-medium durian exporters have collectively endured losses of around VND 10 billion.
For Mickaël, this split in response is more than just operational — it underscores where Vietnam’s compliance infrastructure is weakest. As profit margins thin and uncertainty rises, some companies have chosen to pause export activities altogether, awaiting clearer guidance from both Chinese regulators and Vietnamese authorities.
Vietnam Risks Losing Market Share
If this halt in shipments continues, Vietnam’s booming durian sector — once a key revenue generator reaching USD 3.2 billion in 2024 — risks losing its competitive edge. Market share may begin shifting toward better-aligned competitors such as Thailand or the Philippines.
Despite the Sub-department of Customs at the Huu Nghi border gate confirming that most Vietnamese shipments are eligible for the “green lane” — exempt from Vietnamese-side inspections — a surge in Chinese customs rejections reveals a growing disconnect between Vietnam’s domestic checks and China’s expectations.
Regulatory Lag Deepens Mismatch With China
Vietnam appears to be playing catch-up with its trading partners’ regulatory updates. For instance, Auramine O inspections were only introduced locally in early 2025, despite the chemical already being flagged in Thai durian shipments back in late 2024.
While efforts have been made to issue protocols aligning with China’s requirements — such as farming area codes, packaging standards, and pesticide thresholds — execution remains fragmented. According to Mickaël:
“The local policy framework has moved in the right direction, but it falls short in providing hands-on technical support, especially for small and mid-sized producers.”
Given that these producers make up the majority of Vietnam’s supply base, the fragmented implementation continues to widen the mismatch between Vietnam’s exports and China’s increasingly strict import regime.
Unless Vietnam expands training programs and accessible certifications, many durian exporters will keep struggling to close the gap between regulatory ideals and operational reality.
Traceability as the Industry’s Safety Net
To mitigate the ongoing disruption, traceability is emerging as a crucial solution. Saint Yi Htet, Founder and Principal Consultant at the Global Food Safety Institute, recommends building a more robust traceability and surveillance framework.
Key measures include:
- Mapping high-risk areas so exporters can plan targeted remediation.
- Investing in digital traceability platforms to monitor pesticide and post-harvest activities.
- Enhancing cooperation among local authorities to ensure orchard registration, safe pesticide use, and controlled post-harvest processes that meet China’s checklist.
These efforts can bolster confidence among Chinese buyers, reduce customs clearance frictions, and lower the risk of shipment rejections.
Mickaël also supports these changes, urging a shift in Vietnam’s Sanitary and Phytosanitary (SPS) regime:
“We need to move from ad-hoc operations to standardized, science-driven monitoring,” he said, arguing that this is key to safeguarding Vietnam’s position and rebuilding trust with Chinese regulators.
Enforcing Laws with Strategic Diplomacy
While traceability and technical upgrades are essential, Saint Yi Htet cautions that they won’t be enough unless the country consistently enforces chemical bans across the entire value chain.
CJ Ng, Executive Director at Directions Management Consulting, emphasizes the importance of strategic diplomacy, especially when it comes to dealing with Auramine O investigations. He proposed a dual-initiative strategy:
- Negotiate with Chinese authorities to set up more Auramine O testing centers along the Vietnam–China border
- Crowdfund domestic testing centers co-managed with Chinese experts to ensure transparency and accuracy
These initiatives could significantly reduce shipment delays and signal Vietnam’s commitment to compliance — both essential steps in regaining lost market share.
A Crisis — or a Strategic Inflection Point?
Despite the current setbacks, industry leaders believe this moment presents a rare opportunity for strategic change.
“The drop in export volumes is concerning, but not irreversible,” said Rich McClellan, Vice Chairman of the Advisory Council at the Vietnam International Financial Centre.
Vietnam still has its core strengths — favorable climate, agricultural scale, and durian crop quality. But according to Rich, maintaining competitiveness will depend on how quickly exporters meet international compliance standards.
“Durian exporters need to treat this not just as a regulatory hurdle, but as a strategic inflection point. Those who invest in compliance systems and supply chain transparency will remain viable. Others risk being sidelined — not just in China, but in other premium markets adopting similar measures.”
Toward a Value-First Export Model
To survive and thrive, experts urge Vietnam’s durian exporters to pivot:
- Move from a volume-first mindset to a model that prioritizes compliance, traceability, and brand value
- Explore alternative markets such as South Korea, the Middle East, and the EU, while still retaining China as the primary focus
- Fully leverage Free Trade Agreements (FTAs) to ensure Vietnam’s agricultural produce is not just abundant — but trusted
Conclusion: Vietnam’s Durian at a Crossroads
Vietnam’s durian industry now stands at a critical crossroads. It can either adapt quickly to China’s evolving regulatory environment or risk handing over one of Asia’s most lucrative fruit markets to its regional competitors.
Elevating Vietnamese durian as a safe, premium, and traceable product is no longer optional — it’s the baseline for future growth, export diversification, and global relevance.
As the final quarter of 2025 approaches, all eyes will be on whether Vietnam’s exporters and regulators can align fast enough — on compliance, traceability, and strategic diplomacy — to protect not just a national export champion, but a symbol of Vietnam’s agricultural potential.
Editor’s Note:
This article was contributed by NewInAsia editorial fellow Le Ha Phuong (Nora), a freelance podcaster and former radio producer who creates current affairs content blending expert insights with engaging storytelling.
In this piece, she examines how Vietnam’s durian industry is grappling with China’s tightened import regulations — and why the crisis signals a deeper need for industrial reform, supply chain transparency, and diplomatic agility.
To pitch your story or share reflections on sustainability, ESG practices, green finance, or the future of business in Asia, contact the NewInAsia editorial team.
Highlights
- Uneven Industry Response Highlights Capacity Gaps
- Vietnam Risks Losing Market Share
- Regulatory Lag Deepens Mismatch With China
- Traceability as the Industry’s Safety Net
- Enforcing Laws with Strategic Diplomacy
- A Crisis — or a Strategic Inflection Point?
- Toward a Value-First Export Model
- Conclusion: Vietnam’s Durian at a Crossroads
Read the Chinese article here.
