Vietnamese tea is in high demand in China, driving a significant increase in Vietnamese tea exports during the first four months of 2024.
Low Chinese Production, High Demand: Despite being the world's largest tea producer and exporter, China is increasingly importing tea from Vietnam due to insufficient domestic production to meet demand. This is attributed to unfavorable weather conditions and soil quality in China's tea-growing regions.
Soaring Vietnamese Tea Exports to China: Fueled by China's strong demand, Vietnamese tea exports to this market have witnessed remarkable growth in the first four months of 2024.
Specifically, the volume of tea exports to China surged by 173.6% and export value increased by 42.4% compared to the same period last year.
Declining Export Prices to China: However, export prices for Vietnamese tea to China have experienced a steeper decline of over 46% compared to the same period last year. This is due to China's preferential tariff policy for tea imports from ASEAN countries, making Vietnamese tea more competitive in this market.
Vietnam's Vast Tea Export Potential: Vietnam's tea plantation area is currently only one-fourteenth of China's, but Vietnam's tea yields are significantly higher. Therefore, Vietnam possesses immense potential to expand tea exports to China and other global markets.
