Source Thuonghieucongluan.com.vn
Coffee is one of 13 key agricultural products of Vietnam. The coffee industry contributes 3% of the country’s GDP, creating jobs and stable incomes for over 600,000 farming households. According to the General Department of Customs, in April 2022, Vietnam exported a total of 2137 tons of coffee to the UK market, with an average monthly export price of 2137 USD/ton, worth 4.56 million USD. In the first 4 months of 2022, Vietnam’s coffee exports to the UK reached 50.3 million USD, up 145.84% in volume and 196.67% in value over the same period in 2021.
The Ministry of Industry and Trade said that Vietnamese businesses need to quickly take advantage of the opportunities brought by UKVFTA. Because according to UKVFTA’s commitment, after 6 years since UKVFTA takes effect, the UK will eliminate import tax on 99.2% of tariff lines, equivalent to 99.7% of Vietnam’s export turnover.
In terms of taste, the British do not drink strong coffee like Vietnamese black coffee. The finished coffee has a strong smell and taste that will be difficult to sell in the UK market.
Regarding packaging, British people have a habit of reading information on packaging very carefully to determine if a product contains allergenic ingredients, how it should be prepared, meets ESG (environmental, social & governance) or not. Distributors will welcome products that are both suitable for consumer tastes and have beautiful packaging.
Notably, British consumers traditionally drink more instant coffee than European countries. However, the reality also shows that sales of ground coffee and specialty coffee are increasing. Especially, coffee certified for quality or certified for environment, labor… is very important for British consumers.
According to experts, currently, green coffee from Vietnam is mostly low-quality Robusta, the competition on cheap prices is no longer appropriate. In order to meet the needs and tastes of the British as well as to penetrate deeper into this market, businesses need to invest in producing high-quality Arabica from smaller-scale growing areas with better governance. , have more traceability and sustainable development. At the same time, actively build and develop customer relationships with large distribution corporations. In particular, take the initiative in preserving and transporting agricultural products by sea; make good use of preferential credit policies and credit assessment and verification services of British banks’ customers.
In order to support export enterprises in general and coffee enterprises in particular to expand their market share in this market, in the coming time, the Ministry of Industry and Trade will promote regular work to support Vietnamese businesses to connect with each other. with British and Irish importers.
