Gia Lai eyes direct agricultural exports to China via Ta Lung Border Gate

The initiative emerged from a recent survey and working session involving the Central Highlands branch of the Vietnam Association of Farms and Agricultural Enterprises, Ta Lung Quang Minh Joint Stock Company, representatives of the Ta Lung International Border Gate and several Chinese enterprises.

The delegation met with the Management Board of Gia Lai Economic Zone and surveyed the Le Thanh International Border Gate, South Gia Lai Industrial Park and several agricultural export businesses to explore opportunities for investment, processing and exports to the Chinese market.

Gia Lai has large areas dedicated to coffee, pepper, cashew, durian, passion fruit and bananas, but fragmented production, limited certified output and insufficient local processing capacity have constrained the value generated from these commodities.

According to the Department of Agriculture and Environment, Gia Lai currently has about 108,987 hectares of coffee producing 341,022 tons a year; 8,425 hectares of pepper yielding 26,632 tons; 40,226 hectares of cashew producing 38,125 tons; 8,932 hectares of durian producing 50,054 tons; 5,382 hectares of passion fruit yielding 90,575 tons; and 9,742 hectares of bananas producing 217,960 tons.

The province has increasingly focused on centralized commodity production and the development of value chains linking farmers, cooperatives and businesses with processing, consumption and export activities.

It is also standardizing production processes and establishing planting-area and packing-facility codes for major crops to improve product quality and access to export markets.

However, many agricultural products are still exported in raw form, while processing facilities remain limited in some production areas. This forces businesses to transport raw materials elsewhere for processing, adding to logistics costs.

In Ia Dom commune, the delegation found that the annual volume of locally produced cashew nuts, together with raw materials imported from northeastern Cambodia, exceeds 200,000 tons.

With no local processing plants, most of the material is transported elsewhere for drying and processing before being exported.

Chinese enterprises have expressed interest in investing in cashew processing facilities in Gia Lai.

Such investment could reduce transportation costs, increase the value of processed products and create conditions for direct exports through the Ta Lung International Border Gate to the Chinese market.

The delegation also visited a nearly 350-hectare durian farm and processing facility operated by 30/4 Enterprise in Ia Tor commune.

The facility has a segmenting line and cold storage for whole-fruit freezing. The farm follows organic standards and focuses on the Musang King and Monthong varieties.

Businesses involved in the survey said stronger connections with the Ta Lung International Border Gate and Chinese enterprises could create opportunities for the direct export of Gia Lai durian to the Chinese market in the coming years.

Participants also called for closer links among producers, farm owners, material suppliers, science and technology organizations, processors and import-export companies.

The aim is to build value chains covering production, processing and consumption through supply, service, processing and product purchase contracts.

Dang Dinh Phuc, director of Phi Long Gia Lai Co., Ltd., said the company purchases, processes and sells more than 60,000 tons of green coffee beans annually, but direct exports account for only about 10% of that volume.

The company has also invested in roasting and grinding equipment using carefully selected raw materials to increase product value and quality.

Phuc said China has significant potential for the company and that direct links with importers could reduce intermediaries, expand market access and improve economic efficiency.

Phi Long Gia Lai has leased 2.5 hectares at South Gia Lai Industrial Park to build a processing facility.

Following assessments of the company's production capacity, several Chinese enterprises have expressed interest in signing memoranda of understanding with Phi Long Gia Lai to expand its coffee export markets.

Nguyen Dung, vice chairman of the Vietnam Association of Farms and Agricultural Enterprises in the Central Highlands, said Gia Lai has large and diverse raw material areas for major agricultural commodities including coffee, pepper, passion fruit, rubber and durian.

Following the survey, the association, Ta Lung Quang Minh JSC and Chinese partners assessed that the province has considerable potential for production, processing and expansion of export markets.

Dung said businesses should turn discussions into concrete agreements and commitments while strengthening investment links in processing, logistics and consumption.

The proposed direct route from Gia Lai's agricultural production areas through the Ta Lung International Border Gate is intended to shorten the route to the Chinese market, reduce intermediaries and logistics costs, and increase the export value of agricultural products from the province.