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Vietnamese enterprises should focus on meeting quality requirements and ensuring green and sustainable growth, experts said at the Vietnam-EU Trade Forum held in Ho Chi Minh City on September 29.

Speaking at the event co-organised by the Vietnamese Ministry of Industry and Trade, and the EU Delegation to Vietnam, Minister of Industry and Trade Nguyen Hong Dien said that over the past more than two years since the EU-Vietnam Free Trade Agreement (EVFTA) took effect, the two sides have witnessed fluctuations of the global economy as well as the economies of the EU and Vietnam amid the COVID-19 pandemic, regional and global geo-political instability.

Data from the General Department of Vietnam Customs showed that the EU is now a leading trade partner, the third biggest export market and the fifth largest import market of Vietnam. Meanwhile, Vietnam surpassed Singapore to become the biggest trade partner of the EU in ASEAN and the world’s 11th biggest supplier of goods to the bloc.

From August 2021 to July 2022, two-way trade between Vietnam and the EU reached 61.4 billion USD, up 11.9% from the first year of EVFTA enforcement. Of which, Vietnam shipped 45 billion USD worth of products to the EU, up 17%.

In the first eight months of this year, the figure hit 42.4 billion USD, marking a 14.85% rise year-on-year. Vietnam mainly exported machinery, garment and footwear, coffee, aquatic products, fruits and vegetables, pepper and rice to the EU.

Dien added that the Vietnamese Government is keen on expanding the markets and boosting its comprehensive partnership with the EU and its member states, thus making it easier to expand bilateral ties, not only in trade but also other economic areas.

Chairman of the European Chamber of Commerce in Vietnam (EuroCham) Alain Cany said in order to be able to compete in the EU and fully tap advantages from the signed FTAs, Vietnamese enterprises need to comply with strict environment standards and meet demands for green and sustainable consumption trend, which is inevitable in the world and a mandatory path for them to deeply join the new value chain.

The EU encourages the development of green and renewable energy sources in Vietnam, he said, adding that European firms want to be present in Vietnam to share their experience, technology and investment.

According to data from the International Trade Center (ITC), in 2021, total coffee imports from the world market into the UK will reach 203.38 thousand tons, worth $945.56 million. Also in 2021, the average import price of coffee into the UK reached $4,649/ton, up 7.5% compared to 2020.

Coffee market in the UK

According to data from the International Trade Center (ITC), in 2021, total coffee imports from the world market into the UK will reach 203.38 thousand tons, worth $945.56 million. Also in 2021, the average import price of coffee into the UK reached $4,649/ton, up 7.5% compared to 2020.

Statistics show that the EU is still the largest coffee supplier to the UK market, while Asia (including Vietnam) only supplies about 90 million tons/year. However, it should be noted that coffee from Vietnam and some other suppliers has also been purchased, packaged, and exported by international roasters to the UK market with their own labels, including: many EU roasters.

According to Statista, the UK coffee market revenue is estimated to reach $8.81 billion by 2022. The market is expected to grow 10.98% annually (CAGR 2022-2025). Thus, the UK market’s revenue is currently about 1/10 of that of the US market ($85.16 billion). Revenue per capita is 128.70 USD in 2022. By 2025, 83% of spending and 29% of coffee consumption in the UK market will be for non-family consumption activities ( e.g. at cafes, hotels, bars and restaurants).

UK consumers traditionally drink more instant coffee than European countries. However, the reality also shows that sales of ground coffee and specialty coffee are increasing. Certification is highly important for UK consumers, especially with regard to quality, labour and environmental factors.

Situation of Vietnam’s coffee exports to the UK

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 UKVFTA agreement opens up opportunities for Vietnam’s coffee industry to better access the UK market, thereby contributing to improving its value and stabilizing exports in difficult conditions of the COVID-19 pandemic.