High Exports – High Imports: An Inefficient Loop

According to statistics, in 2023, Vietnam exported over USD 35 million worth of fresh betel nuts—a surge of more than 120% compared to the previous year. Betel nut prices reached a record 85,000–90,000 VND/kg, especially in central provinces like Quang Ngai and Binh Dinh, driven by strong demand from China. Vietnamese betel nuts are highly regarded for their quality, particularly the young variety, which meets the processing requirements for food and medicinal products.

However, in the same year, Vietnam spent up to USD 16.5 million to import processed betel nut products—especially betel nut candy, a traditional snack widely consumed in China. This figure marks a 2.6-fold increase compared to 2022. It’s a clear example of the prevalent “raw export – refined import” trend still dominating Vietnam’s agricultural industry.

Chinese Betel Nut Candy: High Value Through Deep Processing and Trade Strategy

While betel nut candy is a familiar treat among Chinese consumers, in Vietnam it has only become popular in recent years—mainly via e-commerce platforms and online retail channels.

These products are typically packaged in small 50–100g bags and come in a variety of flavors such as chocolate, mint, herbal, and goji berry. They retail for 120,000 to 250,000 VND per pack—equivalent to 2.5–4 million VND/kg—dozens of times more expensive than fresh Vietnamese betel nuts. This highlights the tremendous added value created through processing, especially in premium, specialty, or medicinal product segments.

Beyond just the product, China has clearly delineated roles within its supply chain: Hainan province supplies the raw young betel nuts, while Hunan province focuses on deep processing, packaging, and brand development. This allows China to set the prices and control the entire value chain.

Why Does Vietnam Still Only Export Raw Products?

Despite being one of the largest producers of fresh betel nuts, Vietnam currently lacks large-scale processing facilities. This limits the country to merely supplying raw materials, without tapping into the true value of the product.

According to Mr. Dang Phuc Nguyen – Secretary General of the Vietnam Fruit and Vegetable Association – most imported betel nut candy is consumed by the Chinese community living in Vietnam or used as gifts. Domestic consumption remains limited due to unfamiliar consumer habits and high prices.

However, Vietnam has all the necessary conditions to produce similar products—and even develop Vietnamese-style betel nut candy to serve the local market and export back overseas.

The Value-Add Puzzle: Not Just About Betel Nuts

The “fresh betel nut export – betel nut candy import” story isn’t unique. From coffee, pepper, fruits, and nuts to seafood, Vietnam has repeatedly fallen into the pattern of exporting raw materials to countries with more advanced processing technologies—only to import back the refined products at much higher prices.

This situation not only results in lost profits but also weakens the competitiveness of Vietnamese agricultural products on the global stage. Without control over the final stages of the value chain—where the highest profit margins are generated—Vietnam remains at a disadvantage in global agricultural trade.

Opportunities and Solutions for Vietnamese Businesses

To resolve this issue, Vietnamese businesses need to focus on three strategic directions:

1. Invest in Deep Processing and Technology

Investing in betel nut processing plants not only helps create high value-added products but also stabilizes demand for farmers, avoiding the “bumper harvest, plummeting prices” cycle. Deep-processed products are also easier to preserve and transport, allowing for export to strict markets like the EU, U.S., and South Korea.

2. Develop Branding and Geographical Indication

Building brands for specialty products—like Vietnamese betel nut candy—is critical to competing with Chinese counterparts. Registering geographical indications also helps protect intellectual property and increase product value in international markets.

3. Apply Technology to Supply Chains and Export Activities

Using tools to identify potential customers in the import-export sector—such as EximGPT—enables businesses to expand their network, identify market demand, and seize export opportunities for processed goods. Instead of passively waiting for orders, businesses can proactively reach out to suitable importers.

EximGPT – A Powerful Ally for Vietnamese Agricultural Exporters

In a global market increasingly demanding on quality, traceability, and product standards, having a comprehensive support tool like EximGPT helps businesses:

• Find international buyers by product type and target segment (e.g., betel nut candy, dried betel nut, betel nut tea).
• Analyze potential export markets using trade data, consumption trends, and logistics conditions.
• Optimize communication such as emails, quotations, and outreach strategies with AI tools specialized in import-export.
• Track lead generation performance through automated reports, enabling timely strategy adjustments.