Vietnamese Bananas Expand in Japan as Philippine Growers Press for Lower Tariffs

A growing challenger in Japan's banana aisles

Vietnam's banana exports to Japan rose 62% in volume and 80.2% in value in the first seven months of 2023 compared with the same period in 2022, according to Vietnam's Ministry of Industry and Trade. Even after that growth, Vietnamese fruit accounted for just 1.3% of Japan's banana imports during those months.

The figures capture a change in a market long dominated by the Philippines. Vietnamese suppliers are gaining customers through competitive prices, growing production and fruit that some Japanese importers say their customers prefer. Major Japanese supermarket chains are increasing their purchases from Vietnam, giving shoppers more choice and Philippine growers more competition.

The Philippines still supplied about 75% of Japan's bananas in 2024, compared with 90% in 2012. That is a decline of 15 percentage points, although Philippine fruit continues to account for roughly three out of every four imported bananas. Vietnam, Cambodia and Peru are among the suppliers taking a larger place in the market.

For growers, the competition reaches beyond supermarket shelves. Tariffs, plant diseases, shipping costs and food safety requirements all affect whether a banana can reach a Japanese buyer at an attractive price. For the Philippines, protecting this trade also matters to an industry generating more than $1 billion in export revenue and supporting the livelihoods of more than 700,000 Filipinos, particularly in Mindanao.

Vietnam's gains remain small beside the Philippine presence in Japan. Their speed, however, is pushing exporters and governments to respond as buyers spread their purchases across more countries.

Why Japanese buyers are choosing Vietnamese fruit

Japanese importers have reported that some customers prefer the flavor of Vietnamese bananas to those from the Philippines. Taste and quality are helping Vietnamese suppliers win repeat business, while supermarket chains are responding by increasing imports.

Japanese buyers also continue to value Philippine bananas for their freshness and taste. The Philippines' proximity to Japan gives its exporters a shipping advantage. Its established position remains substantial even as retailers buy more fruit elsewhere.

Retailers have practical reasons to diversify. Purchasing from several countries can help them maintain a steady supply and competitive prices when one supplier faces production problems or higher costs. Vietnam's expanding output and favorable tariff treatment make it an increasingly attractive option.

Vietnamese exporters must still meet demanding expectations for food safety, appearance, quality and taste. A lower import tax can help a shipment compete on price, but securing lasting supermarket orders also requires consistent fruit and dependable deliveries.

How tariffs change the price competition

Vietnamese bananas have faced a 0% tariff in Japan since April 2023 under the ASEAN-Japan Comprehensive Economic Partnership Agreement, down from 3%. A tariff is a tax charged when a product enters a country. Removing it reduces one part of the cost of bringing that product to market.

Philippine bananas face a different arrangement. Under the Philippines-Japan Economic Partnership Agreement (PJEPA), Japan applies tariffs ranging from 8% in summer to 18% in winter. Philippine exporters therefore compete against Vietnamese fruit entering without that charge.

The Pilipino Banana Growers and Exporters Association (PBGEA) has urged the Philippine government to renegotiate the terms. It argues that the lower tariffs available to competitors make it increasingly difficult for Philippine growers to compete on price.

Japan's trade agreements also allow bananas from Mexico and Peru to enter at zero tariffs. The competitive pressure therefore extends beyond Vietnam, with several suppliers benefiting from more favorable access.

Japan's broader plans call for zero tariffs on bananas from Vietnam and other exporting countries by 2028. Vietnam's zero rate under the ASEAN-Japan agreement has already applied since April 2023. Philippine growers are seeking comparable concessions as the market becomes more open to competing suppliers.

The dates behind the shift

The change in Japan's banana trade has developed over more than a decade. The main dates show both the Philippines' declining share and the policy changes helping Vietnam expand.

• 2012: The Philippines supplied about 90% of Japan's banana imports.
• April 2023: Japan's tariff on Vietnamese bananas fell from 3% to 0% under the ASEAN-Japan Comprehensive Economic Partnership Agreement.
• January to July 2023: Vietnam's banana exports to Japan increased 62% in volume and 80.2% in value from a year earlier, reaching 1.3% of Japanese imports.
• 2023: China's imports of Philippine bananas fell by nearly 50%, while Vietnamese banana exports to China rose 19% and captured 42% of that market.
• 2024: The Philippines supplied about 75% of Japan's bananas, while Vietnam cultivated more than 161,000 hectares of bananas and produced nearly 3 million tonnes.
• 2028: Japan plans zero tariffs on bananas from Vietnam and other exporting countries, extending the competitive pressure on Philippine suppliers seeking similar treatment.

The figures describe different parts of the trade. Vietnam's rapid growth in Japan began from a small share, while its expansion in China has already carried it past the Philippines as that country's largest banana supplier.

Vietnam builds an export industry

Vietnam cultivated more than 161,000 hectares of bananas in 2024, producing nearly 3 million tonnes. Bananas have developed from a local staple into an export crop serving a widening range of destinations.

China remains the largest buyer and takes the majority of Vietnam's banana exports. Japan, South Korea, the United States, ASEAN countries, the European Union and the Middle East are also important markets.

Modern cultivation methods have helped raise production. In Vietnam's Southeast region, yields have reached as much as 34.5 tonnes per hectare. Higher yields give growers more fruit from the same area of land, supporting their ability to supply larger export orders.

Vietnamese producers are also investing in international safety certifications and traceability systems. Traceability means keeping records that allow a shipment to be connected to the place where its fruit was grown. Those records help buyers check its origin and production conditions.

Trade agreements have reduced or removed tariffs in important destinations, giving exporters another advantage. Production improvements, quality controls and access to markets are working together to support Vietnam's expansion.

Most Vietnamese bananas nevertheless leave the country fresh and with little processing. Developing products such as dried banana chips and banana powder could bring in more export revenue and reduce growers' dependence on competing mainly through low prices.

Quality rules and disease limit expansion

Japanese buyers require Vietnamese exporters to meet strict food safety and quality standards. Bananas destined for Japan must be produced under international safety certifications, while the areas supplying the fruit must be registered and assigned codes for traceability.

Those requirements make the growing area part of the export process. Producers need records and controls that connect the crop to its origin, alongside the cultivation and handling needed to deliver fruit of consistent quality.

Japanese importers are increasingly interested in organic bananas, creating another potential market. Vietnam has limited capacity to produce organic bananas on a large scale because persistent plant diseases are difficult to control without conventional methods.

Vietnam therefore faces a demanding task as orders grow: expanding supply while maintaining the standards that attracted Japanese customers. Larger harvests must be matched by reliable safety checks, consistent taste and quality, and the ability to trace shipments.

The Philippines faces its own disease pressures. Fusarium Wilt, also known as Panama disease, has reduced banana yields, particularly among smaller growers. Lost production makes it harder for those growers to maintain sales while competing with suppliers receiving better tariff treatment.

Why the Philippines is pressing Japan for change

Philippine Agriculture Secretary Francisco Tiu Laurel Jr. has held talks with Japanese counterparts to seek a review of the PJEPA and lower banana tariffs. He has stressed the industry's role in reducing poverty and creating jobs in Mindanao, asking Japan to consider the wider economic effect of its trade policies.

The stakes extend across farms and export businesses. More than 700,000 Filipinos depend on the banana industry for their livelihoods, and the sector generates more than $1 billion in export revenue. Maintaining access to a major market such as Japan is therefore closely connected to employment and farm income.

The PBGEA has warned that Philippine bananas could lose their competitive position in Japan and other important markets without tariff reductions. The association also wants the government to prioritize banana research and invest in disease management so growers can sustain production over time.

Tariffs are only part of the pressure. Plant disease has affected yields, new suppliers are expanding their exports, and weaker sales to China have increased the importance of Japan. Vietnam, Cambodia and Mexico are among the countries benefiting from increased production, lower tariffs and improved logistics.

No date has been given for a completed PJEPA review or an agreement reducing Japan's tariffs on Philippine bananas. Philippine officials are pursuing negotiations while growers continue to face the existing seasonal charges.

China's market adds pressure across Asia

Vietnam has overtaken the Philippines as China's largest banana supplier, supported by greater production, better prices and improved logistics. Investments in Cambodia and other neighboring countries have also strengthened Vietnam's position in the Asian banana trade.

China's imports of Philippine bananas dropped by nearly 50% in 2023 amid disputes in the West Philippine Sea. During the same year, Vietnam's banana exports to China rose 19%, capturing 42% of the market.

The change has pushed Philippine exporters to diversify their destinations and increase efforts to protect sales in Japan and South Korea. Losing business in China makes competitive access to those other markets more valuable.

Vietnam's position also reflects transport improvements. Better road and rail connections between Vietnam and China have reduced shipping times and costs. Alongside wider logistics improvements, those links support Vietnam's appeal to buyers in China and Japan.

The ASEAN-Japan Comprehensive Economic Partnership and the Regional Comprehensive Economic Partnership (RCEP) have helped agricultural products move between Asian markets. Such agreements set trade terms between participating countries, including arrangements that can reduce the cost of importing goods.

What growers and shoppers can expect

Japanese shoppers are seeing a more diverse banana market as retailers increase purchases from Vietnam and other suppliers. Philippine bananas remain dominant, but their share has fallen as competitors improve production, transport and access under trade agreements.

Vietnam's next task is to keep quality consistent while producing more. Exporters must satisfy Japan's food safety rules, maintain traceable growing areas and meet buyers' expectations for taste. Disease control and limited organic production remain practical constraints.

The Philippines is focusing on better trade terms, research, disease management and a wider range of export destinations. Its proximity to Japan and the continued appeal of its fruit remain advantages, while seasonal tariffs and production losses put pressure on prices and supply.

Japan's market is also a demanding test for Vietnamese exporters seeking customers elsewhere. Success depends on repeatedly meeting high expectations for safety, quality and taste, the same qualities needed to compete in other demanding international markets.

Competition is likely to intensify as Japan moves toward broader zero tariff access by 2028. Both Vietnam and the Philippines will need continued investment in quality controls, disease management and logistics to serve buyers reliably.

Key Points

• Vietnam's banana exports to Japan rose 62% in volume and 80.2% in value in the first seven months of 2023, reaching 1.3% of Japanese imports.
• The Philippines supplied about 75% of Japan's bananas in 2024, down from 90% in 2012.
• Vietnamese bananas have entered Japan at a 0% tariff since April 2023. Philippine bananas face seasonal tariffs of 8% to 18%.
• Vietnam produced nearly 3 million tonnes of bananas on more than 161,000 hectares in 2024.
• Philippine officials and growers are seeking lower Japanese tariffs alongside investment in research and disease control.
• Vietnam has become China's largest banana supplier, while weaker Philippine sales there have increased the importance of Japan and South Korea.
• Food safety, traceability, plant disease and reliable shipping remain central to competition for Japanese buyers.