Vietnam’s tea exports in 2023 decreased by nearly 11% compared to 2022. One reason of the decline was tea consumption demand in export markets. Another reason is that Vietnamese tea enterprises were slow to improve product quality. In addition, Vietnam was slow to invest in deep processing and little research on new products.
According to the data, Vietnam’s tea exports in 2023 reached 121,000 tons, worth 211 million USD. These figures went down 16.9% in volume and 10.9% in value compared to 2022. In the fourth quarter of 2023, tea exports were at 39,300 tons, worth 70 million USD, up 16.7% in volume and 18.1% in value compared to the third quarter. Compared to the same period in 2022, although the volume of tea exports decreased by 22.1%, the value increased by 1.4%.
Vietnam’s tea exports
Experts claimed that the main factors causing Vietnam’s tea exports to decrease significantly in 2023 were weak market demand. Also, there were increasingly strict import regulations in major markets. In addition, Vietnam’s tea exports are mainly in raw form with low processing content.
In 2023, Vietnamese tea exports to major markets such as Pakistan, Taiwan and Russia all decreased. The main reason was that the economies of these countries are still facing many difficulties. Especially, Pakistan’s foreign currency shortage has made it impossible for many import enterprises in this country to buy foreign currency to pay for export enterprises.
Organic black tea from Vietnam
According to the Vietnam Trade Office in Pakistan, the Pakistani customs agency stipulates that all importing shipments remaining in the port for more than 30 days will be put on the list of auction. Therefore, enterprises exporting goods from Vietnam to the Pakistan need to pay attention to shipments that are in payment delays.
Especially, those payment delays that are more than 30 days from the time the goods arrive at Karachi port. Such enterprise should notify the Vietnam Trade Office in Pakistan for coordination in handling. Doing well this job will avoid incurring costs and fines from the port and shipping lines. In addition, over this deadline, the Pakistani customs agency will confiscate and auction these shipments.
Vietnam’s tea export price in 2023 increased by more than 7% compared to 2022. However, this price was only less than 70% of the average tea export price in the world. The average global tea export price in 2023 reached $2,600 per ton.
Organic green tea from Vietnam
In recent years, the world’s tea consumption demand has changed very rapidly, shifting from regular tea products to deeply processing tea products. However, the Vietnamese tea companies were still slow to improve product quality, slow to invest in deep processing. These were the reasons why Vietnamese tea products lost their competitiveness.
Currently, green tea products still account for 94% of Vietnam’s total tea export volume. However, this is the lowest grade tea product, mainly using only traditional drying methods, without going through deep processing.
Meanwhile, high-grade tea products such as black tea, flower-scented tea, oolong tea only account for 6% of the total tea export volume. The export price of these deeply processing teas is pretty high. However, due to the low export volume, the export turnover is insignificant.
An ancient tea tree from Vietnam
Regarding the types of tea products exported in 2023, the leading type in terms of volume was green tea with 57,500 tons, down 6.9%. The value was worth $113.5 million, down 1% compared to the same period in 2022.
Next is the type of black tea reaching 46,000 tons, worth $62.4 million, down 16% in volume and 18% in value, respectively. Scented tea reached 3,800 tons, worth $8 million, down 4.7% in volume but up 6.5% in value. Notably, oolong tea exports reached 1,300 tons, worth $3.8 million, up 102% in volume and 107% in value compared to 2022.
Vietnam currently has 120 thousand hectares of tea growing area. The country has 257 industrial-scale tea processing enterprises. The total capacity for these enterprises reaches 5,200 tons of fresh buds per day. Also, they produce nearly 200,000 tons of products each year.
In tea processing activities, several enterprises have invested in modern processing technology lines, so the value has been gradually increased. However, in reality, tea production in Vietnam still has many weaknesses.
Organic tea certificate from Vietnam
The application of good agricultural practices as well as organic production has been implemented for many years but so far the rate is still low. Moreover, the management of seed quality and tea seed production and trading establishments in some localities is still loose, and sanctions are still difficult.
Currently, tea production by households accounts for 65%, with a scale of 0.2 hectare per household. The situation of collecting raw materials through many levels increases the price of input materials. Moreover, it prolongs the preservation time, reduces the quality of raw materials, and increases investment costs.
The government sets the goal of developing the tea industry sustainably. The goal by 2030, the tea growing area of Vietnam will reach more than 130,000 hectares. In which, 75% of the tea growing area will be organic tea.
Organic tea materials from Vietnam
To increase Vietnam’s tea exports, the Vietnamese tea industry must promote tea production in a safe direction. Additionally, the industry encourages tea production enterprises to apply high technology, focuses on high-value products.
In particular, tea enterprises in Vietnam should invest in deep processing of tea products and reduce green tea output. Localities need to promote safe tea production, encourage people to produce tea using high technology, biology, organic agricultural production. Finally, they should support people to link production with processing and consumption of products.
Vietnamese source: https://vneconomy.vn/xuat-khau-che-sa-sut-vi-cham-dau-tu-vao-che-bien-sau.htm