How to expand tea export market share to Pakistan?

Citing statistics from the General Department of Customs, the Import-Export Department (Ministry of Industry and Trade) said that in the first two months of 2024, tea exports reached 17.7 thousand tons, worth 29.2 million USD, up 30.6% in volume and 29.3% in value over the same period in 2023. In the first two months of 2024, the average export price of tea reached 1,652.8 USD/ton, down 1% over the same period in 2023.

Cách nào mở rộng thị phần xuất khẩu chè sang Pakistan?

In the first two months of 2024, Pakistan was Vietnam's number 1 tea export market, reaching 5.5 thousand tons, worth 10.9 million USD, up 2.9% in volume and 16.2% in value over the same period. Illustrative photo

Regarding export markets, in the first two months of 2024, tea exports to major markets all grew positively. Leading the way were exports to the Pakistani market reaching 5.5 thousand tons, worth 10.9 million USD, up 2.9% in volume and 16.2% in value over the same period in 2023; followed by the Taiwanese market reaching 1.8 thousand tons, worth 2.8 million USD, up 21.8% in volume and 16.2% in value; the US market reached 1.2 thousand tons, worth 1.6 million USD, up 103% in volume and 105.1% in value; Indonesia reached 1.06 thousand tons, worth 1.06 million USD, up 9.2% in volume and 3% in value...

While tea exports to major markets tend to grow positively, tea exports to some other markets have decreased such as: Russia, Saudi Arabia, Iraq...

According to the Vietnam Trade Office in Pakistan, the main Vietnamese exports to the Pakistani market are: Tea; textile fibers and yarns of all kinds; pepper; iron and steel of all kinds; seafood; rubber; cashew nuts; cassava and cassava products; chemical products; iron and steel products; phones and components; machinery and equipment; means of transport...

Vietnam imports from this market goods such as: Fabrics of all kinds; textile, garment, leather and footwear materials; textile fibers and yarns of all kinds; pharmaceuticals; cotton of all kinds...

Ms. Nguyen Thi Diep Ha - Head of the Vietnam Trade Office in Pakistan said that Pakistan is a tea-drinking country. Pakistan's average tea consumption per capita is about 1.5 kg/year. Therefore, to meet domestic consumption needs, this country needs to import a large amount of tea. In recent years, the output of tea imported from Vietnam by Pakistan has been increasing rapidly every year. Notably, the type of tea exported mainly to Pakistan is black tea, which is also Vietnam's main export tea with about 80% of total export output.

However, the Vietnam Trade Office in Pakistan said that although it is one of the largest markets, due to many barriers, especially the lack of market information, Vietnamese tea businesses find it difficult to access and have large orders with Pakistani businesses.

Not to mention, in 2024, Vietnam's export of goods to this market will continue to face many challenges because the country's economy is still facing many difficulties due to policy instability, complex administrative systems, import restriction policies, etc.

Therefore, to expand the market share of goods exported to Pakistan, the Vietnam Trade Office in this country recommends that Vietnamese enterprises need to increase and promote goods and seek trade cooperation opportunities through international fairs and exhibitions.

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

Regarding tea, Ms. Nguyen Thi Diep Ha recommends that domestic agencies encourage enterprises and cooperatives to develop growing areas for these plants to maintain stable supply output; establish industry associations and branches in localities to avoid price pressure.

Pakistan is a market that is not strict about quality, does not have overly complicated regulations on technical standards, animal and plant quarantine standards, food hygiene and safety standards, environmental protection standards, traceability standards, labor standards... However, the current security and political situation in Pakistan is very complicated, and is at risk of becoming more complicated. In addition, inconvenient travel conditions between Vietnam and Pakistan, cultural differences... are factors that prevent Vietnamese businesses from going to Pakistan to survey the market, promote products, and find customers.

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