According to the General Department of Customs data, in May 2022, Vietnam exported 9.5 thousand tons of tea, with a turnover of 16.87 million USD, up 6.7% in volume and 3.6% in turnover over April 2022. This amount, compared to May 2021 is a decrease of 5.8% in volume but increased by 2.7% in turnover.
In the first 5 months of 2022, Vietnam’s tea exports reached 41.3 thousand tons, equivalent to a turnover of 69.8 million USD, down 12.0% in volume and 7.2% in turnover compared to the same period in 2021.
The average tea export price of Vietnam in May 2022 was 1,689 USD/ton, down 2.2% over April. However, compared to May 2021, this price was an increase of 5.4%.
In the first 5 months of 2022, Vietnam’s average tea export price was 1,688.9 USD/ton, up 5.5% over the same period in 2021.
Pakistan, Taiwan, and Russia were the 3 largest tea exporting markets of Vietnam in the first 5 months of 2022, accounting for 56.3% of the amount exported. Tea exports to Pakistan were up 9.1% in volume and 8.3% in turnover; to Taiwan down 15.4% in volume and 9.5% in turnover; to Russia down by 33.2% in volume and 30.2% in turnover.
Tea exports to several markets decreased compared to the same period in 2021, for example, Russia, Iraq, China, India, Ukraine, etc. Exports to some markets increased sharply. Exports to the US increased by 31.1% in volume and 39.5% in turnover; to Saudi Arabia up 70.0% in volume and 102.3% in turnover; to Germany up 32.6% in volume and 60.8% in turnover, etc.
Nearly half of the top 15 tea importing countries in the world in 2020 were in the Middle East, North Africa, and South Asia regions, such as Pakistan (589.8 million USD), Saudi Arabia (243.6 million USD), Iran (236.3 million USD), Morocco (202.3 million USD), Egypt (197.2 USD), UAE (164.9 million USD), Iraq (134.7 million USD).
The Middle East, North Africa, and South Asia are markets that have a great demand for tea, creating a lot of room for Vietnam’s tea to be exported to these countries.
However, in recent years, due to many subjective and objective reasons, Vietnam's tea exports to the Middle East, North Africa, and South Asia are still limited and not commensurate with their potential.
Vietnam's tea export turnover to the Middle East market in 2020 reached 13.7 million USD. The main markets exported to were Iraq (5.6 million USD), Saudi Arabia (4.1 million USD), and UAE (2.6 million USD).
In the countries mentioned, Pakistan is proving to be the most potential exporting market for Vietnam’s tea products.
According to data from the Pakistan Tea Association, tea imports from Pakistan in the first three months of 2022 reached 61.6 thousand tons, with a turnover of 167.7 million USD, up 0.3% in volume and 19.8% in turnover over the same period in 2021. The average price of imported tea in the first three months of 2022 reached 2,722.3 USD/ton, up 19.4% over the same period in 2021.
Pakistan is a potential market in South Asia, with a population of nearly 230 million people and a high demand for tea, with an estimated annual per capita consumption of more than 1 kg. Pakistan is one of the largest tea import markets in the world. Pakistan has always been the leading tea export market of Vietnam for many years.
It is forecasted that Vietnam's tea exports will continue to grow in the coming time, thanks to positive signals from the import market. The trend of tea consumption will increase as consumers have to stay at home more. In addition, the tariff incentives from Free Trade Agreements such as EVFTA, CPTPP, etc., will also bring advantages to the tea industry in the context of the current fierce competition.
Source: The Ministry of Industry and Trade
Compiled by VietnamCredit
