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Vietnam
OpinionComment
Sonja Cheung
Sonja Cheung

The View | Sweet smell of Vietnam’s durian export success shows China’s regional influence cannot be ignored

  • The US is turning to Vietnam in its attempts to diversify supply chains and curb China’s regional influence, but that is easier said than done
  • Vietnam’s booming durian exports are just one example of its close economic dependence on China, complicating US ‘friendshoring’ efforts

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A shopper chooses among imported durian at a supermarket in Nanning, in southern Guangxi Zhuang Autonomous Region, on September 7. The notoriously odorous fruit has rapidly gained popularity among China’s middle-class consumers, creating a surge in imports and another avenue through which China and Vietnam are closely linked. Photo: Xinhua
Sonja Cheung
Like a motorbike that weaves its way through the crowded streets of Ho Chi Minh City, Vietnam has navigated into the fast lane and established itself as an indispensable bridge between China and the United States, emerging as a key player at the centre of the supply chain between the global juggernauts.
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And with more US companies exiting China yet keen to maintain a presence in Asia, its strategic significance is set to grow.

The Southeast Asian economy is an unintended beneficiary of US moves to counterbalance China’s influence in the region and diversify its trade partnerships. However, the fact is that China’s influence remains substantial, given the level of Vietnam’s dependence on it.

As Tuan Quang Phan, an associate professor at the University of Hong Kong Business School, puts it, China has a “critical role to play with its southern partner”.

More recently, trade between Vietnam and China has taken on a distinctly Asian flavour that is helping to solidify economic ties. Chinese consumers have emerged as major buyers of durian – the smelly, spiky fruit also known as the “king of fruits” – that is becoming one of Vietnam’s most exciting exports.
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Global sales of durian have risen during the past nine years, and most of them were consumed by hungry Chinese. According to data from WorldTrade, global imports of durian amounted to US$4.66 billion in 2022, of which 86 per cent went to China.

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