In 2021, Vietnam’s tea exports are estimated to reach 126 thousand tons, equivalent to 213 million USD. That is a decrease of 6.7% in quantity and 2.0% in turnover compared to 2020. However, in 2022, the tea export of Vietnam is forecast to continue growing thanks to optimistic signals from its import markets. Consumers are increasing tea consumption since they have to spend more time at home. In addition, tax incentives coming from FTAs such as EVFTA, CPTPP, etc., will also bring advantages to Vietnam’s tea industry.
The Agency of Foreign Trade (under the Ministry of Industry and Trade) estimated that Vietnam’s tea exports in December were 11 thousand tons, worth 20 million USD, down 1.9% in quantity and up 10.8% in turnover compared to December 2020. The average export price of tea in December 2021 was estimated at 1,784.9 USD/ton, up 12.9% compared to December 2020.
According to the General Department of Customs statistics, Vietnam’s tea exports in November 2021 were 9.4 thousand tons, with a turnover of 15.9 million USD, down 23.9% in quantity and 25.2% in turnover over October 2021, down 11.1% and 6.5% in quantity and turnover compared to November 2020.
In 11 months of 2021, the tea export of Vietnam accumulated to a total of 104.6 thousand tons, equivalent to 175.0 million USD in turnover, down 1.5% in quantity and up 2.9% in turnover compared to the same period in 2020.
The average export price of Vietnamese tea products in November 2021 reached 1,707.2 USD/ton, decreased by 1.7% compared to October 2021, but rose by 5.3% in comparison with November 2020. In the whole 11 months of 2021, Vietnam’s tea export price reached 1,672.5 USD/ton averagely, up 4.6% over the same period in 2020.
Pakistan, Taiwan, and Russia were Vietnam's three main tea importing markets in the 11 months of 2021. Exports to said three markets accounted for 63.7% of Vietnam’s tea exports. Tea export to the Pakistani market decreased by 3.9% in quantity, 0.3% in turnover compared to 2020. Tea export to the Taiwanese market increased by 8.2% and 7.4% in quantity and turnover over 2020. Tea export to the Russian market was down by 15.6% in quantity and 9.7% in turnover over the same period in 2020.
Vietnam’s tea export markets in 11 months of 2021 had unstable growth compared to the same period in 2020. Exports to some markets, such as Russia, Indonesia, India, UAE, Saudi Arabia, etc., all saw a downtrend. However, in markets like China, Iraq, and the US, the quantity and turnover of tea export all increase. Tea export to China was up 20.1% in quantity and 28.1% in turnover, to Iraq was up 73.6% in quantity and 84.3% in turnover. Exports to the US witnessed an increase of 23.2% in quantity and 31.3% in turnover.
(11 months of 2021)
It is forecasted that Vietnam's tea exports in 2022 will continue to grow positively.
Global demand is improving as world economies enter a phase of recovery, driven by the robust rollout of COVID-19 vaccination.
In addition, FTAs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnam-EU FTA (EVFTA), etc., continue to create favorable conditions for tea products of Vietnam to participate in partner markets with preferential tariffs.
EVFTA has helped promote Vietnam’s tea export to the EU. As soon as the EVFTA Agreement comes into effect, EU countries commit to lifting tariffs on tea products. Taking advantage of incentives from EVFTA, in the 11 months of 2021, tea export turnover to the EU reached about 3 million USD, up 21.6% over the same period in 2020 despite a 16.4% decrease in export volume. Up to now, Vietnam is the 18th largest tea supplier to the EU, the volume and value of EU tea imported from Vietnam has increased sharply.
Products made from Vietnam's tea tree are increasingly diversified and abundant, ensuring the output and quality to serve the needs of domestic consumers and for export.
Vietnamese tea enterprises are shifting their focus to exporting high-quality tea products. That will be a suitable orientation for the EU market, because, with a relatively high income, EU consumers will have a higher demand for products’ quality rather than products’ price.
Source: The Ministry of Industry and Trade
Compiled by VietnamCredit
