In the first 9 months of 2022, Vietnam exported 92 thousand tons of tea, reaching a turnover of 157.8 million USD, up 0.5% in volume and 3% in turnover over the same period in 2021.
Data from the General Department of Customs showed that Vietnam’s tea exports in September 2022 reached 13.2 thousand tons, equivalent to a turnover of 21.29 million USD, up 13.2% in volume and 4.8% in turnover over September 2021.
Tea exports increased sharply in September 2022 because, at the same time in 2021, the Covid-19 pandemic broke out, disrupting the production and export activities of many industries. Therefore, the volume and value of Vietnam's tea exports in September 2021 were low.
In the first 10 months of 2022, it is estimated that tea exports of Vietnam were 107 thousand tons, with a turnover of 181 million USD, up 2.3% in volume and 2.7% in turnover compared to the same period in 2021.
In the first 9 months of 2022, Pakistan, Taiwan, and Russia are Vietnam’s three largest tea exporting markets, accounting for 62.2% of the country’s total tea exports. Specifically, tea exports to the Pakistan market increased by 36.9% in volume and 31.0% in turnover over the same period in 2021; exports to the Taiwan market decreased by 16.2% in volume and 6.8% in turnover; tea exports to the Russian market decreased by 24.2% in volume and 19.4% in turnover.
Vietnam's tea export market in the first 9 months of 2022 has uneven growth compared to the same period in 2021. Exports to some markets decreased, such as China, Iraq, India, Ukraine, UAE, etc. However, tea exports to several markets increased strongly. Exports to Malaysia increased by 30.7% in volume and 19.7% in turnover, and to the US by 13.2% in volume and 17.9% in turnover.
In the first 9 months of 2022, Vietnam's tea exports to the country's largest market, Pakistan, increased sharply in volume and turnover. The amount of tea exported to the Pakistani market accounted for 41.4% of total tea exports, up 10.3 percentage points over the same period in 2021.
The prospect of tea export in the last months of 2022 is less favorable and the growth potential is low. The reason is that the main import markets of Vietnam are facing many difficulties. The conflict between Russia and Ukraine continues to reduce the demand for Russian tea imports; China still maintains the "Zero Covid" policy, causing an interruption of tea exports to this market.
Since June 2022, the Government of Pakistan has urged people to reduce tea consumption to keep the economy growing due to Pakistan’s low foreign exchange reserves. Pakistan is the world's largest tea importer. Importing tea means that the country will have to spend foreign currency, so the Government urges people to reduce tea consumption. Therefore, exporting tea to the Pakistani market will face many difficulties in the coming time.
However, there may still be growth in tea exports in Vietnam, as the consumption trend is rising due to people staying at home. In addition, tariff incentives from Free Trade Agreements such as EVFTA, CPTPP, etc., also bring advantages to the tea industry.
(First 9 months of 2022)
Asia Tea Company Limited, Phu Tho New Generation One Member Co., Ltd, and Hoang Minh Tea Company Limited were Vietnam’s top 3 tea exporters in the first 9 months of 2022, exporting a total of over 25,000 thousand USD of tea.
Source: The Ministry of Industry and Trade
Compiled by VietnamCredit
