Regulatory Gridlock Paralyzes EU Exports
Vietnam’s dragon fruit industry is currently embroiled in a severe crisis as bureaucratic delays in export certification threaten to waste thousands of tons of premium fruit. The situation has reached critical levels, with over 200 tons of dragon fruit per day at risk of spoilage due to administrative bottlenecks in obtaining required phytosanitary certificates for EU exports.
The crisis stems from new EU regulations mandating that Vietnamese government agencies must issue export certificates. While Vietnam’s Ministry of Agriculture and Rural Development (MARD) designated Ho Chi Minh City’s Food Safety Department as the responsible authority, implementation has stalled due to regulatory gaps. The current Circular No. 12 only provides standard templates but doesn’t authorize local agencies to issue “alternative forms of certification,” creating a legal limbo.
“Previously issued certificates were rejected by the EU because they required hand-signed originals rather than electronic signatures,” explained a representative from Ho Chi Minh City’s Food Safety Department. “Local agencies currently have no legal basis to comply with these new requirements”.
The problem is compounded by a skills gap at the grassroots level. According to Lam Dong Province’s agricultural department, many local officials lack sufficient understanding of EU phytosanitary standards. While the Plant Protection Department has delegated certification authority, it hasn’t provided adequate technical support, resulting in widespread hesitation and inability to process applications.
Mounting Economic Losses and Market Reputation Damage
The Vietnamese Dragon Fruit Association has warned that tens of thousands of tons of high-quality fruit face destruction if the certification deadlock persists. Industry estimates suggest direct losses already exceed $5 million, with incalculable damage to Vietnam’s reputation as a reliable agricultural exporter.
Binh Thuan Province, Vietnam’s dragon fruit heartland, reports that 90% of its production traditionally went to China. However, recent market diversification efforts toward higher-value EU markets now hang in the balance due to these certification issues.
The Plant Protection Department has pledged to implement reforms within a month, including:
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Publishing a list of qualified inspection agencies
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Standardizing EU-compliant operational procedures
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Conducting training programs for local officials
Pesticide Scandal Compounds Crisis
As if the certification crisis weren’t enough, Vietnam’s dragon fruit exports suffered another blow when South Korea’s Ministry of Food and Drug Safety (MFDS) announced on July 30, 2025 that it had detected excessive pesticide residues in a batch of Vietnamese dragon fruit imported by Del Monte.
Laboratory tests found thiamethoxam residues at 0.11 mg/kg – 10 times higher than Korea’s maximum residue limit (MRL) of 0.01 mg/kg. Thiamethoxam, a neonicotinoid insecticide, may affect the human nervous system if consumed in large quantities.
The contaminated batch, totaling 15,000 kg of new-season fruit that entered Korea on July 8, has been ordered off shelves, with consumers advised to return purchased products1. This incident follows an earlier EU Rapid Alert System for Food and Feed (RASFF) notification in April 2025, when France rejected Vietnamese dragon fruit due to excessive dithiocarbamate residues (0.20 ± 0.10 mg/kg vs. the 0.05 mg/kg MRL).
Government Scrambles for Solutions
Recognizing the severity of the situation, Vietnam’s government has taken emergency measures. The Government Office issued Document No. 6931/VPCP-NN on July 31, 2025, conveying Prime Minister Pham Minh Chinh’s directives to resolve export difficulties for dragon fruit and pepper.
Key directives include:
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Immediate resolution of EU export certification issues
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Expedited guidance on required documentation procedures
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Enhanced coordination between ministries and localities to prevent supply chain disruptions
The EU, a crucial high-value market for Vietnamese dragon fruit, has warned it may turn to alternative suppliers if delivery delays continue. With approximately 250 tons of spice products (worth $2.4 million) already awaiting approval, the economic stakes are substantial.
Long-Term Implications for Vietnam’s Agricultural Exports
This dual crisis highlights systemic challenges in Vietnam’s agricultural export system:
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Regulatory inflexibility: Inability to quickly adapt to importers’ evolving certification requirements
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Technical capacity gaps: Uneven distribution of expertise needed for high-standard markets
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Quality control issues: Persistent pesticide management problems damaging market confidence
As Vietnam seeks to reduce its dependence on the Chinese market and move up the value chain, resolving these structural issues will be critical. The current crisis serves as both a warning and an opportunity for Vietnam to strengthen its agricultural export governance and quality assurance systems to meet the exacting standards of premium international markets.
