Tea exports enjoy robust growth despite COVID-19 threat

Vietnam’s tea exports to major markets globally during the first half of this year recorded a robust growth, reaching 58,000 tonnes worth US$90 million, amid the impact of the COVID-19 epidemic, according the Agro Processing and Market Development Authority (Agrotrade)

Agrotrade stated that the tea export volume in June alone stood at an estimated 12,000 tonnes with an overall value of US$19 million with the export of high-quality tea products to high-end markets, helping local tea businesses to find sustainable outlets.

Due to the complicated nature of the COVID-19 pandemic, the country’s tea exports to several major markets such as Russia, Indonesia, and the United States have maintained vigorous growth.

The opening five months of the year saw Vietnam ship 6,100 tonnes of tea worth US$9.3 million to Russia, representing an increase of 11.6% in volume and 11% in value compared to the same period last year.

Meanwhile, tea processing businesses exported 5,100 tonnes worth US$4.5 million to Indonesia, marking a rise of 36.7% in volume and 29.4% in value. Tea exports to the US reached 2,400 tonnes worth US$3 million, indicating an annual increase of 15.1% in volume and 17% in value.

Most notably, tea exports to the United Arab Emirates tripled in comparison to last year’s corresponding period, according to Agrotrade.

Despite these positive factors, there is a limited number of domestic firms that have invested in launching high-quality tea products in an effort to meet market requirements.

At present, some 370 businesses and individuals nationwide have participated in exporting tea, with the majority shipping raw products to 74 countries and territories globally.

However, there remains a number of inadequacies in strengthening linkages among provinces in terms of tea production and processing, according to industry insiders.

Developing the tea industry in a sustainable manner, Agrotrade director Nguyen Quoc Toan underlines the need to encourage tea growers nationwide to be involved in a sustainable and quality supply chain while promoting a tea production model in line with VietGAP standards.

Furthermore, local enterprises have been advised to be proactive in investing in the application of cutting-edge technologies to produce high-quality products that can meet demands from demanding markets such as the US and the EU.