Vietnam and China have bolstered their economic and trade alliances through the signing of protocols, paving the way for the official export quota of frozen durian and fresh coconuts to a lucrative market of 1.4 billion people.
The agreements are poised to significantly increase frozen durian exports to an estimated $400-500 million and fresh coconut exports by $200-300 million this year.
The signing of these protocols has sparked concerns in the Thai market, renowned for its fresh coconut and related products, regarding intensifying competition with Vietnam for the Chinese market.
In 2023, Thai coconut exports were valued at $288 million, marking a 3.98% increase from the previous year, while total coconut product exports from Thailand to other nations amounted to nearly $995 million.
Despite the surge in Vietnam’s coconut market, Thai Coconut Public Company Limited (SET: COCOCO), a prominent coconut product manufacturer, remains undeterred. The company expresses confidence in its extensive experience in producing high-quality coconut goods.
Established in 2015 and listed on the Thai stock market in 2023, COCOCO specializes in coconut milk, coconut water, processed coconut, pet food, and plant protein-based products like cheese and butter.
With a robust customer base and strategic growth initiatives, COCOCO boasts consistent financial performance. The company emphasizes the superior quality of Thailand’s Aromatic Young Coconut compared to those from Indonesia and Vietnam in terms of aroma and flavor.
Mr. Worawat Chinpinkyo, CEO of COCOCO, revealed the company’s strong 2Q24 earnings report and highlighted effective cost management during coconut supply shortages earlier in the year. The CEO anticipates a revenue growth of approximately 30-40% in 2024, COCOCO remains steadfast in its commitment to deliver excellence in Thailand’s coconut product market.
