Vietnam’s tea exports in ten months of 2021

In the first ten months of 2021, Vietnam's tea exports are estimated at 104 thousand tons, with a turnover of 174 million USD, down 7.2% in volume and 3.3% in turnover compared to the same period in 2020.

Vietnam's tea exports to Iraq recorded impressive growth in the first nine months of 2021, up 76.2% in volume and 87.5% in turnover over the same period in 2020.

According to statistics from the General Department of Customs, Vietnam's tea exports in September 2021 reached 10.2 thousand tons, with a turnover of 17.11 million USD, up 9.3% in volume and 11.6% in turnover compared to August 2021, but decreased by 10.2% in volume and 7.8% in turnover compared to September 2020. In general, in the first nine months of 2021, Vietnam's tea exports reached 83 thousand tons, with a turnover of 137.7 million USD, down 0.5% in volume but up 3.8% in turnover compared to the same period in 2020.

Tea export to Pakistan, Taiwan, and Russia accounted for 62.2% of the total tea exports of Vietnam, making them the three largest tea export markets of Vietnam in the first nine months of 2021. Vietnam's tea export market in the first nine months of 2021 has uneven growth compared to the same period in 2020. In which, exports to some markets decreased, such as Russia, Indonesia, India, UAE, and Saudi Arabia, etc.

However, tea exports to some markets still increased strongly such as China, with an increase of 30.5% in volume and 43.3% in turnover; Iraq by 6.2% in volume and 87.5% in turnover; the US increased by 10.5% in volume and 17.4% in turnover, etc. The demand for tea in these markets increased sharply, but the supply was limited due to the impact of the Covid-19 pandemic, leading to Vietnam's chance to penetrate the markets.

Vietnam’s top 10 tea exporters

(First ten months of 2021)

Industry outlook

Continuing the growth momentum in the first nine months of 2021, in the last three months of 2021, Vietnam's tea exports are forecast to grow positively. Global demand is improving as world economies enter a recovery phase, driven by the aggressive rollout of Covid-19 vaccination.

In the first half of 2021, Vietnamese tea exported strongly to Pakistan, Russia, and Taiwan, while in big markets such as the EU, US, etc., Vietnamese tea has not found a foothold. These markets have high requirements, while Vietnamese tea products still do not meet the quality standards, coupled with poor designs and standards, leading to the situation that Vietnamese tea cannot compete with tea products of other countries.

Vietnam's tea industry still faces some limitations that make tea products unable to compete with competitors in major markets, such as:

• The scale of tea production is still small, so it is very difficult to access new and modern technical equipment and certify safe tea.
• The investment in infrastructure for tea production is still limited, irrigated tea only accounts for a small amount of about 7% of the country's tea-cultivating area, so the potential of new tea varieties has not been brought into full play.
• Tea quality, hygiene, and safety have not met the standards of the tea industry, leading to not meeting the requirements of many export markets of developed countries.
• Although many tea processing establishments have been granted construction permits, they do not have adequate raw material areas, not to mention low skill levels in processing, which lead to low tea quality.
• The area cultivation in Vietnam is shrinking. The conservation and preservation of rare tea varieties in Vietnam have not yet been paid enough attention.

However, recently, Vietnam's tea products are becoming increasingly diversified and abundant, with guaranteed output and quality, serving the needs of domestic consumers and exports. Vietnam's tea exports in recent times have increased in volume and value. Signed free trade agreements such as CPTPP, EVFTA, etc., will help Vietnam's tea products to enter partner markets with preferential tariffs.

Vietnam's specialty teas will be the products with the highest prospect of finding a foothold in the EU and US markets, provided that they meet the requirements of food safety and plant protection drug residues.

Compiled by VietnamCredit