How can we expand our tea export market share to Pakistan?

Citing statistics from the General Department of Customs, the Import-Export Department ( Ministry of Industry and Trade ) reported that in the first two months of 2024, tea exports reached 17.7 thousand tons, valued at 29.2 million USD, an increase of 30.6% in volume and 29.3% in value compared to the same period in 2023. In the first two months of 2024, the average export price of tea reached 1,652.8 USD/ton, a decrease of 1% compared to the same period in 2023.

In the first two months of 2024, Pakistan was Vietnam's number one tea export market, reaching 5,500 tons, worth $10.9 million, an increase of 2.9% in volume and 16.2% in value compared to the same period last year. (Illustrative image)

Regarding export markets, in the first two months of 2024, tea exports to major markets showed positive growth. Leading the way was exports to Pakistan, reaching 5.5 thousand tons, valued at US$10.9 million, an increase of 2.9% in volume and 16.2% in value compared to the same period in 2023; followed by Taiwan with 1.8 thousand tons, valued at US$2.8 million, an increase of 21.8% in volume and 16.2% in value; the United States with 1.2 thousand tons, valued at US$1.6 million, an increase of 103% in volume and 105.1% in value; and Indonesia with 1.06 thousand tons, valued at US$1.06 million, an increase of 9.2% in volume and 3% in value...

While tea exports to major markets showed positive growth, exports to some other markets declined, such as Russia, Saudi Arabia, and Iraq.

According to data from the Vietnam Trade Office in Pakistan, the main Vietnamese export items to the Pakistani market are: tea; various types of textile fibers and yarns; pepper; various types of iron and steel; seafood; rubber; cashew nuts; cassava and cassava products; chemical products; iron and steel products; telephones and components; machinery and equipment; and transportation vehicles...

Vietnam imports goods from this market such as: various types of fabrics; raw materials and accessories for textiles, garments, leather, and footwear; various types of textile fibers and yarns; pharmaceuticals; various types of cotton, etc.

Ms. Nguyen Thi Diep Ha, Head of the Vietnamese Trade Office in Pakistan, stated that Pakistan is a tea-drinking country. The average per capita tea consumption in Pakistan is approximately 1.5 kg per year. Therefore, to meet domestic demand, the country needs to import a large quantity of tea. In recent years, the volume of tea imported by Pakistan from Vietnam has been increasing rapidly. Notably, the main type of tea exported to Pakistan is black tea, which is also Vietnam's main export product, accounting for about 80% of total exports.

However, the Vietnam Trade Office in Pakistan believes that, despite being a large market, due to many barriers, especially the lack of market information, Vietnamese tea businesses find it difficult to access and secure large orders from Pakistani businesses.

Furthermore, in 2024, Vietnam's exports to this market will continue to face many challenges because the country's economy is still grappling with difficulties stemming from policy instability, a complex administrative system, and restrictive import policies.

Therefore, to expand the export market share of goods to Pakistan, the Vietnamese Trade Office in Pakistan recommends that Vietnamese businesses should strengthen and promote their goods, and seek opportunities for trade cooperation through international trade fairs and exhibitions.

The trade office noted that businesses should seek partners through official trade channels such as: participating in trade promotion programs, attending international trade fairs and exhibitions; participating in business forums, direct business meetings, or through introductions from trade promotion agencies.

Regarding tea specifically, Ms. Nguyen Thi Diep Ha advised that domestic agencies should encourage businesses and cooperatives to develop growing areas for tea crops to maintain stable supply; and establish industry associations and branches in localities to avoid price manipulation.

Pakistan is a relatively undemanding market in terms of quality, lacking overly complex regulations on technical standards, plant and animal quarantine standards, food safety and hygiene standards, environmental protection standards, traceability standards, and labor standards. However, the current security and political situation in Pakistan is very complex and is at risk of becoming even more so. Furthermore, inconvenient travel between Vietnam and Pakistan, along with cultural differences, are factors hindering Vietnamese businesses from conducting market research, promoting products, and seeking customers in Pakistan.

Source: https://congthuong.vn/cach-nao-mo-rong-thi-phan-xuat-khau-che-sang-pakistan-312183.html