Vietnam overtakes Phl as China’s top banana supplier

The Philippines has lost its 20-year dominance as China’s top banana supplier to Vietnam, marking a significant shift in the multi-billion-dollar market.

Data from the International Trade Centre (ITC) revealed that Vietnam, for the first time, surpassed the Philippines in banana exports to China last year. 

China imported a record 625,166 metric tons (MT) of bananas from Vietnam, while imports from the Philippines dropped to 463,306 MT—the lowest in 15 years.

Vietnam’s banana exports to China grew by nearly 24% from 505,633 MT in 2023, while imports from the Philippines plunged by 32.45% from 685,869 MT. 

The Philippines, once holding a 70% market share in 2017, now accounts for only 27.47% of China’s banana imports, while Vietnam has surged to 37.06% from just 1% a decade ago.

The Pilipino Banana Growers and Exporters Association (PBGEA) attributed the decline to rising geopolitical tensions in the West Philippine Sea, which have impacted trade relations with China. 

Additionally, the local banana industry continues to struggle with the spread of Fusarium Wilt, or Panama disease.

China’s volatile spot pricing system has also discouraged Filipino growers, who prefer long-term contracts for stable profits. Meanwhile, Vietnam’s banana industry continues to expand with larger plantation areas and additional supply investments in Cambodia.PBGEA warned that the decline in China comes as the Philippines is also losing market share in South Korea amid growing competition from Latin American and Asian banana producers in key markets like Japan, South Korea, and China. TRACY CABRERA