Tea sector urged to improve product quality amid growing supply source

The Vietnamese tea sector must improve its competitive edge and product quality if it is to see an increase in value amid lower global demand and growing supply sources.

According to the General Department of Vietnam Customs, Vietnam exported 128,000 tons of tea worth US$219 million during 2018, down 8.4 per cent in volume and 3.4 per cent in value against the same period last year. Notably, the proportion of green tea exports increased to 45.7 per cent from 39.4 per cent.

According to the Import-Export Department under the Ministry of Industry and Trade, Vietnam’s tea exports are predicted to still face a number of challenges due to a lowering global demand in 2019. In addition, many nations have continued to expand their own production despite the fact that supply sources already exceed the current demand.

The Food Agriculture Organization of the United Nations estimated that in 2018 the redundant quantity of tea stood at 75,000 tons. This figure is forecast to rise to 128,000 tons by 2020.