Vietnam tea exports to hit $700 million by 2020

Vietnam said its tea industry has targeted exports of $700 million by 2020.

According to Vietnam Tea Association, in order to achieve the goal, the sector must acquire new markets by producing products of high quality at reasonable prices.

The association had a sustainable strategy which included modernising the processing industry, increasing capacity, improving quality and increasing training for farmers on tea cultivation techniques.

Vietnam is one of the world's eight leading tea growing nations, with favourable geology and climatic conditions, according to the association.

It ranks fifth internationally and first among Asean countries in production and ex ports, with Russia its leading export market.

Vietnamese tea can now be found in 110 countries and territories around the world, and the "Che Viet" (Vietnamese tea) trademark has been registered and protected in 73 regional and national markets.

Tea exports totalled 24,000 tonnes in the first quarter of this year, earning $33 million - an increase of 6.3 percent in quantity and 14.6 percent in value over the same period last year. Average prices rose during the quarter by $93 per tonne to about $1,200.

Tea, like most Vietnamese agricultural products, needs to develop a trademark before being exported to international markets, said Vietnam Farmers Association.

Tea exports in 2009 reached 133,000 tonnes, worth a total of $178 million, an increase of $30 million over the previous year making tea the only major export product to see rises in both quantity and value last year during the economic crisis.

Tea is cultivated on more than 128,000ha in 35 provinces around the country, with an average yield of 6,500kg/ha, providing tea to about 700 processing plants, according to the Ministry of Agriculture and Rural Development.