1.

Introduction

- Lychee is a traditional fruit of Vietnam, which first occurred in early 20th century in

Thanh Ha, Hai Duong Province.

- so special that people go crazy about it? After peeling the red and rough skin, the

white and thick pulp will show up. And I’m certain once you tried it, you gonna be

addicted to its sweet and watery flavour => Reason why when it comes to lychee

season, people complain that they gonna get more acnes but at the same time they

keep eating a kilo of lychee.

 Lychee is like an addiction. Once you get into it, it is very hard to get out

- Therefore, Lychee has become one of the most purchased arigiculture products in

both domestic and foreign market. It’s estimated that in 2021, the total amount of

lychee reached 216,000 tons, in which 58% (127k tons) is for dosmetic market, and

the rest is for foreign market.

 Lychee from Vietnam has enough potential to expand in many higher quality

market – one of them is Europe, and in our next part, we will figure out why our

lychee should be exported to European countries

2. The reasons

- Firstly, why we choose this product to export to European market?

 The main and also the most important reason is to take advantage of the

EVFTA agreement. This will reduce the tax on Vietnamese products exported

in to European market and also cut out of some procedure -> make it easier

for Vietnamese lychee to get into this market with a more competitive price

compared to other counterparts.

 Moreover, Because this market requires many strict standards that

sometimes are very hard to meet. And as a result, successfully entering the

European market will boost the identity of Vietnamese lychee.

  Lastly, heading into this huge market will definitely bring out more profit than

our traditional exporting markets(China, Thailand, etc). it will be a great

contribution to the growth of VNese GDP, esp when we are encountering a

difficult period with Covid 19 pandemic

- So, what are the realistic opportunities for out lychee in european market?

 The most important one this that lychee can not be grown in Europe due to

the climate. However, the demand for this product in European countries is

very high and stable. So that is the reason why European countries have to

import 20-25k tons of fresh lychee annually. Let’s make a simple comparison.

As we have mentioned in the first part, Vietnam can export about 89k tons of

lychee in this year. Well, if we have enough qualification and transportations,

we might meet the lychee needs for a whole market :D I know it sounds

impossible but what I want to emphasize is that our country is able to

provide for this market.

 Furthermore, the Europe is lacking of fresh lychee providers. Madagascar and

South Africa have been long-term suppliers for this market but they only

provide lychee in winter (10-2). It means that in summer, the lychee supply

becomes limited. This is absolutely our chance to get into the market because

our lychee season is in June and July. But you know, a potential market

always has many competitors, and China is the biggest one among of them.

However, China themselves are importing a lot of our lychee to export to the

world. So this problem can be solved when we offer a more reasonable price

for europe market.

 As we have known, Vietnam has exported lychee to many countries for a very

long time. However, exporting to Europe is totally a different process which

 requires many professional and qualified procedures. Therefore, in the past

few years, many households have applied organic production, VietGAP,

GlobalGAP, reduce using chemical fertilizers, so the quality is totally different.

Preliminary and preservation process becomes more professional and

quicker. After that, the lychee will have “a long vacation” from Vietnam to

Europe in a plane or container with the modern technology to keep it as fresh

as possible.

3. Business plan

- We have chosen 3 main partners in the summer of 2021 when VN first exported

lychee to Europe with the respective amount. (doc ra tren slide). In total, we are

gonna export 10 tons of lychee

 Since Vn has just exported to Europe once this summer, so there isn’t much

information about price and other additional price to combine. So we had

found out a way to calculate estimated price for lychee. In the first quarter of

2021, vietnam’s total agriculture products exported to Europe is 1,490. By

dividing the total value of 9,041 thousand Euro. We gonna get the average

price of about 6 thousand euro/ ton -> approximate to 6 euro/kg – this will

be the exporting price for lychee

 Then, we gonna buy lychee directly from lychee farm, with the average price

of 50k/kg – include all the additional fee for production line, transportation,

etc. the total procedure price will be 500 milions vnd. With the exported cost

is 6 euro, it means that 1 kg of lychee will cost 161k vnd. And the total

amount of export is equal to 1610 billions vnd. Total profit is 1.110 billiions

vnd
4. CONCLUSION

- From the above reasons, it is certain that vnese lychee has enough potential to be

exported to Europe market. Our product has met all the demand for product

qualities from this market. So in order to take advantage of EVFTA agreement, vnese

companies need to improve their production line and also transportation => The

European are able to enjoy the best flavor of this fruit

- We hope that with all the technology will soon be applied into the production and

transportation, our lychee market will expand to all over the world