Vietnam is one of the cradles of tea trees and the 5th largest tea exporter in the world. Vietnam has a tropical climate and fertile soil that factors are suitable for tea varieties. Therefore, Vietnamese green tea has competitive advantages: including abundant supply, high quality, focus on growing organic tea, modern production technology, low labor cost, etc. This article will write about the situation of the green tea market in Vietnam before and now, and also the future development orientation.

Tea farm
Vietnam has many advantages in developing green tea production to the worldwide tea market.

1. Vietnamese green tea market in the past

The Vietnamese green tea industry has a long journey of improvement and development. Heretofore, Vietnamese tea products had a “bad tea reputation” due to excessive use of pesticides and low quality.

In the past, the Vietnamese green tea industry was disorganized, sanitation standards were poor, and lack of advanced manufacturing methods. Many tea companies used old Russian manufacturing machine systems for since the Economic Reform period (The Đổi mới).

planting tea
Vietnam has large tea growing areas, but tea value is not high.

2.  Vietnamese green tea market in the present

In recent years, the Ministry of Agriculture and Rural Development of the Socialist Republic Vietnam has published many policies to develop the green tea industry sustainably [1]. For example, the department announced agrochemical substances that are allowed or banned in growing tea plants. Many tea companies in Vietnam have imported the tea processing machinery from India – one of the biggest tea manufacturers in the world.

On the other hand, the Vietnamese green tea industry has attempted to change the image. We’ve been improving our processing technologies, and then, we obtain certifications such as the Rainforest Alliance [2], VietGAP – a Vietnamese tea production standard. Nowadays, Vietnamese green tea products are varied. We have not only commodity tea types but also specialty tea.

As a result, green tea cultivation, processing, and business have all advanced significantly in recent years. In the last five years, the total area used for tea cultivation has stayed about 130,000 hectares. Vietnam has become the 5th tea exporter in the world since 2018. Tea products of Vietnam are exported to 74 countries and territories.

According to data announced by the General Department of Customs, Vietnam exports totaled roughly 137.4 thousand tons, equivalent to 236 million USD in 2019. However, in 2020, due to the Covid-19 pandemic, tea exports decreased 1.8% compared to 2019, reaching 135 thousand tons. As a result, the value of tea exports was 218 million USD, down 7.8%. Green tea contributed 48% of the total (including flavored green tea and Oolong).[3]

 tea plants.
The government has new policies with tea plants.

Related post: Vietnamese green tea tin box: Necessary information for wholesalers

3.  Vietnamese green tea market in the future

According to the Vietnam Tea Association, tea productivity, output, and export volume have continuously increased over the past years. The positive results come from the policies of the Vietnamese government applied before.

Vietnamese green tea products are varied because tea companies have manufactured many types and packaging designs. One of the most crucial factors is that Vietnamese green tea has been grown in an organic orientation. It is to reduce the excessive use of pesticides in order to meet the standards of difficult markets such as the EU.

After the EVFTA Agreement takes effect, tea import taxes in EU nations are completely eliminated. It provides a great opportunity for Vietnamese tea exporters to expand their market share in the worldwide tea market.

Vietnamese farmers collect fresh tea leaves to make green tea
Vietnamese farmers collect fresh tea leaves to make green tea

Related post: The best green tea brand in Vietnam you should know

4. FGC – The best green tea brand in Vietnam

Established in 1996, with more than 25 years of development, FGC has been one of the leading tea companies in Vietnam recently. By applying modern tea manufacturing systems, FGC can export about 20 thousand tons of tea per year.

FGC owns a tea-growing area of nearly 25 thousand hectares with 60 tea farms nationwide. Most of those areas follow organic farming methods. FGC has 15 tea factories across the country, which produce tea under certification of standards of VietGap, Rainforest Alliance, etc.

With 25 years of experience in the tea industry, FGC has built an R & D department to research and develop new green tea recipes that meet customers’ needs, such as flavored tea, fruit tea, flower-scented tea, milk tea, matcha, green oolong tea, etc.

various types of green tea for market.
FGC’s product ranged from loose tea to RTD tea

FGC always focuses on improving green tea plant varieties, farming methods, and strict production processes to get the best quality products. FGC also invests in many modern large-capacity machines to produce small bags and pouches, tea bags, RTD tea (ready-to-drink tea) in bottles and paper edges, sticks, and sachets, etc. to meet the current trends of tea consumption.

If you are interested in FGC’s green tea, please contact us by following:

FGC’s Tea ordering process

When you give us an email, a call or a request through a form on the website, we will respond as soon as possible within hours. Then, we will go through 6 steps to understand together. Our team is willing to support you to find the best green tea products or recipes to meet your customers’ needs.

Here are some channels to give us contact information. You are welcome to FGC.

We hope that the information about the green tea market in Vietnam has helped you understand more about this potential tea market and choose the best tea producer for your business.

Author: Ms. Tuyet Mai – Sales Executive (mai.dtt@vietnam-tea.com)

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