16 March 2022, VN: According to the Ministry of Industry and Trade, the complicated developments of the Covid-19 pandemic plus difficulties in logistics activities make Vietnam’s coffee exports to the EU in 2021 estimated at 556 thousand tons, worth over 1 billion USD, down 7.9% in volume. However, thanks to the increase in export prices, the export value of coffee has increased by 6.3% compared to 2020.
The EU’s coffee market is very large, and Vietnam still has a lot of room to boost exports in 2022, thanks to the advantage of export tax rates and an increased supply of high-quality coffee. It is forecasted that in 2022, Vietnam’s coffee exports to the EU will prosper again.
EU is currently the largest coffee consumption market in the world, also the largest Vietnamese one and accounts for more than 16% of the market share. In particular, with the commitment to remove tariff barriers thanks to the EVFTA Agreement, the opportunity to expand the Vietnamese coffee market in the EU is very potential when 93% of tariff lines are reduced to 0%. In which, the product that benefits the most is processed coffee. Coffee is also one of 39 geographical indications of Vietnam that the EU commits to protect when the EVFTA officially comes into effect. This is a huge advantage for the coffee industry.
According to the Ministry of Industry and Trade, Vietnam and Brazil both have Free Trade Agreements with the EU. Therefore, both countries benefit from tax rates on coffee exports to the EU. Each country plays a different role, targeting certain segments of the EU coffee industry. Brazil is a major supplier of both Robusta and Arabica varieties, accounting for 71% of Arabica. Meanwhile, Vietnam focuses on producing and exporting Robusta coffee. Currently, the EU market’s demand for processed and high-quality coffee is on an upward trend. Therefore, the potential for Vietnam’s coffee exports to the EU is huge.