Creating an export identity for Vietnamese tea

According to General Department of Customs, Vietnam’s tea exports reached 120,310 tonnes in the first 10 months of 2024, valued at 211.93 million USD, up 28.3% in volume and 30.3% in value compared to the same period in 2023. The average tea export price in the first 10 months of 2024 reached 1,762 USD per tonne, up 1.5% compared to the same period in 2023.

Vietnam’s tea potential

Currently, Vietnamese tea is exported to more than 70 countries and territories, with Pakistan being the largest export market. In the first 10 months of 2024, tea exports to this market accounted for 34.7% of the total volume and 41.2% of total export value. Taiwan (China) came second with 10.3% of volume and 10.1% of value.

Notably, in the first 10 months of 2024, the proportion of tea exports to China increased significantly, accounting for 9.5% of total volume and 7.7% of total export value (compared to 3.5% of volume and 4.7% of value in the same period of 2023).

Vietnam Tea Association Chairman Hoang Vinh Long stated that Vietnam’s tea industry has been developing sustainably, applying production methods according to international certifications. Vietnam’s strength lies in its soil and climate conditions, which are very suitable for tea cultivation, with many specialty tea regions producing high-quality tea such as Thai Nguyen, Son La, and Lam Dong. Notably, Vietnam has nearly 20,000 hectares of Shan tea. There are many ancient Shan tea areas with centuries-old trees producing high-quality tea, such as Suoi Giang (Yen Bai), Ha Giang, and Ta Xua (Son La).

According to international experts and consumers, Vietnamese tea products’ quality is not inferior to any tea-producing country in the world. Specifically, Vietnamese green tea is highly appreciated by many customers, including green tea from Moc Chau, Thai Nguyen, Suoi Giang, and Ha Giang, Lam Dong Oolong, and products like lotus-scented and jasmine-scented teas.

In Thai Nguyen, the province currently has 17,824 hectares of new tea varieties, accounting for nearly 80% of the total area; nearly 2,500 hectares of tea are VietGAP certified, and hundreds of hectares are produced according to organic standards. In the remote commune of Ban Lien, Bac Ha District, Lao Cai Province, there are over 300 households growing snow Shan tea. Many households have escaped poverty and are building wealth by switching to growing snow Shan tea and producing organic tea for export to countries such as France, Germany, and the Netherlands.

Recently, the locality has added Hong Dao tea products for export to the US market at high prices, opening new opportunities for tea growers. In Tuyen Quang Province, My Lam Tea Joint Stock Company produces tea products that meet food safety standards according to European Union (EU) standards.

The company’s production technology meets the food safety and management standards of major global corporations. The company’s production output reaches 2,050 to 2,300 tonnes per year.

“Unfortunately, when famous products are exported to foreign consumers, they mostly don’t carry the Vietnamese tea brand. This is because most tea is still exported as raw material without strong branding, while promotional activities for Vietnamese tea are still very limited,” Long emphasised.

Increasing deep processing products

To improve the quality and value of Vietnam’s tea industry, Deputy Director of the Department of Crop Production Nguyen Quoc Manh said that the Ministry of Agriculture and Rural Development has set a direction for 2030, whereby the area of certified clean and safe tea (organic, GAP, VietGAP and equivalent) will reach more than 70%; applying high technology in irrigation, fertilisation, harvesting, preservation, and processing.

By 2030, the country’s organic tea area is expected to reach about 11,000 hectares, with productive area reaching 10,000 hectares and output reaching approximately 70,000 tonnes, concentrated in the provinces of Ha Giang, Lao Cai, Yen Bai, and Thai Nguyen. The national specialty tea area will reach about 34,500 hectares, while the productive area will reach 32,000 hectares, with output reaching approximately 290,000 tonnes.

It is essential to preserve, exploit and develop snow Shan tea areas to provide raw materials for organic tea production, specialty tea, and processed tea products with high added value while protecting the ecological environment, including: Ha Giang snow Shan tea area with over 7,000 hectares; Suoi Giang snow Shan tea area (Yen Bai) with about 400 hectares; and Ta Xua snow Shan tea area (Son La) with about 200 hectares.

Along with production, from now until 2030, the tea industry needs to focus on developing new tea products with high added value, deep processing, premium refined products for use in food and non-food industries, pharmaceuticals, or cosmetics; and continue investing in modern technology and equipment to improve tea product quality.

Regarding export markets, Vietnam’s tea export volume is forecast to reach 156,000 tonnes by 2030, up by an average of 0.83% per year, accounting for about 80% of total tea production. The main markets for Vietnamese tea products will remain Pakistan, China, Russia, and Indonesia, with a shift toward exporting high-quality tea products to the EU market.

Currently, the proportion of black tea exports is going down. In 2022, black tea exports accounted for 43% and are forecast to fall to 41% by 2030; green tea exports reached 54% in 2022 and are forecast to increase to 56% by 2030. Therefore, tea export businesses should grasp information and trends of each market to achieve quick and effective market penetration.

Source: Nhandan News