According to preliminary data of the General Department of Customs, in the first 9 months of 2020, tea exports from Vietnam to foreign markets increased 4% in volume but decreased 4.8% in turnover over the same period in 2019, reaching 98,075 tons of output with the total turnover of over USD157.1 million. Meanwhile, by the end of the third quarter of 2019, the output of tea exports rose by only 3.1% but total turnover was 9.2% higher than the turnover recorded the same time the year before. As can be seen from the above figures, the average value of each ton of tea Vietnam exported this year has dropped significantly as compared to the same period last year. Specifically, the average value of tea exports from the beginning of the year to the end of September was about 1602 USD/ton, reducing almost 148 USD/ton over the same time the previous year when the value was approximately 1750 USD/ton. Thus, by the end of September 2020, the average export price of tea this year was equivalent to only 91.55% of the price in the same period last year.
If mentioning only three months of the third quarter, the volume of exported tea was more than 40,129 tons, total turnover of more than USD66.2 million. In particular, the volume of tea exported in July reached nearly 13,376 tons, with the turnover of over USD22.1 million, showing an increase of 10.3% in volume and 9.9% in turnover over the previous month. In August 2020, tea exports reached 13,296 tons at the value of USD21.8 million, down 0.6% in volume and 1.5% in turnover as compared to the figures in July. In the last month of the third quarter, tea exports increased slightly by 1.2% in volume and 1.7% in turnover over the previous month, reaching an output of 13,457 tons, total turnover of over USD22.2 million. The average value of tea exported in September 2020 was about 1652 USD/ton, increasing 8 USD/tonfrom the value in August 2020 but decreasing 7 USD/ton from that in July 2020.
Last year, the three largest importers of tea from Vietnam were Pakistan, Taiwan, and China. Although the volume of teaVietnam exported to the Chinese market in 2019 was smaller than the amount exported to Russia, the total turnover was greater; therefore, China was the third largest tea importer of Vietnam after Pakistan and Taiwan. However, by the end of the third quarter of 2020, Russia has surpassed China in both volume and turnover of exported tea to become one of the three leading markets for Vietnam's tea consumption together with Pakistan and Taiwan.
The leading export market of tea from Vietnam in the first 9 months of 2020 was Pakistan. In the first three quarters of 2020, tea exported to Pakistan reached 29,260 tons, total turnover of more than USD55.7 million. Tea supplied to the Pakistani market accounts for almost 30% of the country's total exports in the first 9 months of the year and makes upmore than 35% of the total turnover. The value of tea exported to Pakistan decreased approximately 94 USD/ton ascompared to the same period in 2019, reaching more than 1,906 USD/ton. In the third quarter alone, the volume of tea supplied to the Pakistani market was 13,834 tons, earning more than USD26.5 million.
Taiwan was the second largest tea consumer of Vietnam in the third quarter of 2020, reaching 5,313 tons, equivalent to more than USD8.1 million in turnover. Accumulated from the beginning of the year to the end of September, the volume of Vietnamese tea exported to Taiwan was 12,627 tons with the total turnover of over USD19.6 million, decreased by about 9.5% in volume and over 9.4% in turnover over the same period last year.
Russia ranked third in terms of the total tea output imported from Vietnam in the third quarter of 2020. The volume of tea exported to Russia in the third quarter alone was 3,887 tons, total turnover of more than USD5.9 million, accounting for almost 9.7% of total output and about 9% of total turnover of the country. Accumulated from the beginning of the year to the end of September 2020, Vietnam has exported 11,258 tons of tea to Russia, earning more than USD17 million.
According to the Agency of Foreign Trade, since many tea-producing countries in the world could be severely affected by floods and social distancing, global shortage of tea would lead to an increase in tea prices in the near future.
Compiled by Vietnam Credit
