Vietnam’s coffee exports to the United Kingdom are rapidly increasing and are expected to continue growing as a result of rising consumer demand in the United Kingdom and the United Kingdom-Vietnam Free Trade Agreement (UKVFTA), according to a report by Vietnam Economy News.
Statistics from the General Department of Customs show that Vietnam’s coffee exports to the United Kingdom have varied month to month; however, coffee exports to the United Kingdom in the first half of this year reached a total volume of 30,609 tonnes, with a total value of $61.9 million, 2.38 times higher than the same period last year. According to the Import-Export Department of the Ministry of Industry and Trade (MoIT), the increase in export was a result of local businesses immediately seizing the opportunity offered by the UKVFTA.
Signed on 29 December 2020, The UKVFTA, which went into effect on January 1, 2021, is expected to regularly provide opportunities for Vietnam to expand its coffee exports in the future.
According to the UKVFTA commitments, all tariffs on coffee, natural honey, fruit juices, fresh flowers, and both fresh and processed fruits and vegetables exported from Vietnam to the UK were eliminated on January 1, 2021. The Ministry of Industry and Trade advises Vietnamese businesses to take advantage of this opportunity to promote their coffee exports to this market.
The implementation of the UKVFTA, according to Lương Hoàng Thái, director of the MoIT’s Multilateral Trade Policy Department, has helped the two nations overcome the difficulties of the COVID-19 pandemic, including the suspension of supply chains.
Trade value growth in agricultural products, particularly coffee, is expected to be positive this year, thanks to the UK economy’s recovery, the efforts of Vietnamese companies and the backing of national trade promotion programmes.
In the future, the Ministry of Industry and Trade will promote its assistance to Vietnamese businesses in connecting with importers in the United Kingdom to increase their share in those markets.
The UK is the fifth-largest coffee-consuming market in Europe, according to MoIT. About GBP3.9 billion (circa $US4.5b) worth of coffee is consumed in the UK each year. However, the COVID-19 pandemic caused a significant decline in UK coffee imports from 2020 to 2021.
Exports to the UK have not been significant compared to other countries.
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Vietnam exported 34,650 tonnes of coffee to the UK in 2021, valued at US$66.2 million, down 35.5% in volume and 31% in value from 2020, according to the Import-Export Department.
