You want to source Vietnamese coconut products, but you're not sure which region is the main producer or what processed goods are exported—do you have a question like that?
This article explains Vietnam's coconut industry from an overview, to the production and processing system concentrated in Ben Tre province, the export trends in coconut oil, milk and fiber, and the Sixth-industrialization efforts that connect to rural development.
The current state of Vietnam's coconut industry
Vietnam is one of Asia's leading coconut producers, after the Philippines and Indonesia. Domestic production reaches about 1.7 billion nuts a year (2023 statistics), and the share of that going to processed goods for export is expanding year by year.
Especially since the 2020s, against the backdrop of the vegan and plant-based food boom in Western markets, demand for Vietnamese coconut products has surged. Export value broke through about US$900 million in 2022, and it is solidifying its position as a major item in agricultural exports.
Production is concentrated in the Mekong Delta region, and within it Ben Tre province is such an important growing area that it is called "the coconut capital of Vietnam."
Why Ben Tre province is called "the coconut capital"
Overwhelming production area and share
Ben Tre province's coconut planted area is about 72,000 hectares (2023), accounting for roughly 35% of the national planted area.
The delta terrain, where tributaries of the Mekong run in a mesh, brings the abundant moisture and fertile soil that coconut cultivation needs. The year-round warm climate is also a factor enabling a stable supply of high-quality fruit.
The formation of a processing-industry cluster
Ben Tre province has a concentration of processing plants across a wide range—coconut oil, milk, charcoal, fiber and sugar. The number of processing companies in the province is more than 300, and the medium- and large-scale operators with export-ready facilities exceed 50.
This industry cluster creates the strength of being able to go straight through from raw-material sourcing to processing and export.
| Indicator | Ben Tre province | National share |
|---|---|---|
| Cultivated area | About 72,000 ha | About 35% |
| Annual production | About 600 million nuts | About 35% |
| Number of processing companies | More than 300 | — |
| Export-ready companies | More than 50 | — |
The processing and export of coconut oil and milk
The diverse uses of coconut oil
Vietnamese coconut oil is exported worldwide as food and as a raw material for cosmetics and pharmaceuticals. Extra-virgin coconut oil in particular is in high demand as a high-value-added product for Western and Japanese markets.
On the quality side, the unheated cold-pressed (cold press) method is spreading. Within Ben Tre province, several factories with ISO 22000 and HACCP certification are operating, and compliance with food-safety standards is progressing.
Vietnam's coconut oil exports in 2023 were about 120,000 tonnes, with the main destinations in the order of China, the EU, the United States and Japan.
Growing demand for coconut milk and cream
Coconut milk is a material used widely not only in Asian cooking but also in the Western vegan food market. As demand as a dairy substitute rises, exports from Vietnam have also grown about 1.8 times between 2020 and 2023.
Factories in Ben Tre province turn it into products in several forms—canned, tea-pack and powdered—allowing flexible OEM support tailored to buyers' needs.
A comparison of destinations and price ranges
| Product category | Main export destinations | Typical FOB price range (USD/kg) |
|---|---|---|
| Coconut oil (virgin) | EU, Japan, United States | 1.8〜3.5 |
| Coconut milk (canned) | China, ASEAN, EU | 0.9〜1.6 |
| Coconut cream | Japan, the US | 1.2〜2.2 |
| Coconut sugar | EU, Japan | 2.5〜4.0 |
The strength of the coconut fiber (coir) industry
What is coir?
The fiber taken from the outer husk of the coconut is called "coir." It is excellent in durability and salt resistance and has a wide range of uses—mats, rope and agricultural materials (seedling trays, soil improvers).
Vietnam is the world's second-largest coir producer after India, with annual exports of about 400,000 tonnes (2022).
The growth market for agricultural coir
In recent years, against the backdrop of the spread of organic and sustainable farming, demand for coconut fiber (coir peat) as a substitute material for peat moss has surged.
In Europe, Japan and South Korea there is high demand for shifting away from chemical fertilizers, and inquiries for Vietnamese coir pots and coir chips for seedlings are increasing year by year. This field is a market where further growth can be expected ahead.
Ben Tre's rural areas changing through sixth-industrialization
The integration of production, processing and sales
In Ben Tre province, a "sixth-industrialization" model is spreading in which farmers are not just raw-material suppliers but also handle processing, direct sales and even tourism.
Since 2020 the provincial government has actively applied the "One Commune One Product (OCOP)" program to the coconut industry, supporting the development of value-added products and the obtaining of certification.
Coconut experience farms and agritourism
Within Ben Tre province, agritourism combining tours of coconut farms, oil-pressing experiences and craft-making workshops is gaining popularity.
In 2019, before the COVID crisis, the number of tourists to Ben Tre province exceeded 1.8 million a year, a record showing that rural tourism contributes to diversifying farm income.
Strengthening the brand across the whole value chain
Ben Tre province is promoting the acquisition of a geographical indication (GI) for the "BENTRE COCONUT" brand. A system that can make the origin clear from raw material to product is proof of reliability for import buyers in Japan, Europe and the United States.
The move to differentiate away from price competition through obtaining a GI and aim at the premium market—seen in other Vietnamese agricultural products too (such as Hue specialties and Central Highlands coffee)—has success stories precedents, and expectations are rising in Ben Tre province as well.
Points for Japanese companies partnering with Vietnam's coconut industry
As an approach from Japan, there are broadly three angles.
1. Importing food materials and OEM
OEM sourcing of coconut oil, milk and sugar is a realistic option for food manufacturers and natural-food brands. Many of the major local processing companies have come to have Japanese-speaking sales contacts.
2. Importing agricultural materials
Coir peat and coir pots can expect demand from domestic organic and Protected horticulture other farmers. As materials with a low environmental burden, SDGs interest from buyers who seek compliance is also increasing.
3. Support for technology and quality control
Supporting the acquisition of ISO, HACCP and JAS organic certification, and providing quality-control know-how, is an area where Japanese companies can bring their strengths to collaboration with local partners.
Summary
Vietnam's coconut industry keeps growing on three pillars: a production base centered on Ben Tre province, an export system for diverse processed products, and rural development through sixth-industrialization.
- Annual export value broke through about US$900 million (2022) and is on an expanding trend
- Ben Tre province is the core region of the coconut industry, responsible for about 35% of national production
- Coconut oil, milk and coir fiber each have their own independent growth trends
Food imports, agricultural materials, technical cooperation and more—there are many channels through which Japanese companies can get involved in Vietnam's coconut industry. After carefully checking the growing area, the processing companies and the certification status, do consider a long-term partnership.
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