A 'golden opportunity' for Vietnamese coffee.

(PLVN) - The Algerian government has just announced a policy to drastically reduce import taxes on coffee, from 30% to just 5%, while also waiving value-added tax and domestic consumption tax. This is a golden opportunity for Vietnamese coffee exporters to expand their market share in this market.

08/03/2025 17:26

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(PLVN) - The Algerian government has just announced a policy to drastically reduce import taxes on coffee, from 30% to just 5%, while also waiving value-added tax and domestic consumption tax. This is a golden opportunity for Vietnamese coffee exporters to expand their market share in this market.

According to the Vietnam Trade Office in Algeria, to help lower coffee prices and support domestic consumers, the Algerian government has decided to exempt or reduce import taxes on coffee. Specifically, the import tax on coffee has been reduced from 30% to 5%. At the same time, Algeria has exempted value-added tax (VAT - 19%) and domestic consumption tax (10%) on coffee.

With the aforementioned decision, the total import tax and fees for Robusta green coffee beans in Algeria are now only 10%, compared to 63% previously. This measure to stimulate coffee consumption will be applied by the Algerian government until the end of 2025. This presents a good opportunity for Vietnamese coffee to strengthen its presence in this market.

According to the Vietnamese Trade Office in Algeria, Algeria does not grow coffee and therefore imports 100% of its coffee to meet domestic demand. Coffee is the most popular beverage among Algerians. With a population of over 46 million, Algeria imports approximately 130,000 tons of various types of coffee beans annually, worth around 300 million USD.

Coffee is imported in raw form (beans) and roasted and processed by Algerian importers in factories according to Algerian consumer preferences and the country's import policies. Robusta coffee accounts for over 85% of Algeria's total coffee imports, with Arabica coffee making up the remainder.

The main coffee exporting countries to Algeria are Vietnam, Brazil, Colombia, Indonesia, Ethiopia, and Uganda. According to data from the General Department of Vietnam Customs, in 2024, Vietnamese businesses exported 34,158 tons of green coffee beans to Algeria, generating revenue of US$127.4 million.

Currently, Vietnamese coffee still has significant export potential to Algeria, as it is highly valued by importing businesses and consumers for its quality and flavor.

According to experts, Vietnamese coffee has a distinctive flavor, produces a high foam, and absorbs sugar better than coffee from other countries.

During processing, Algerian roasters often blend Vietnamese Robusta coffee with Robusta or Arabica coffee from other countries in specific proportions. Importers typically seek to purchase 18-screen raw coffee at an affordable price, equal to or lower than the price offered by international intermediary companies.

Source: https://baophapluat.vn/co-hoi-vang-cho-ca-phe-viet-post541863.html