The Vietnam Industry and Trade Centre report for the first seven months of this year confirmed the country as the fifth largest tea exporter, but added that export value was limited.
Vietnam's export value is only 60-70% of average world prices
Vietnam exported 69,000 tonnes of tea, an increase of 5% compared to the same period last year. Vietnam's biggest customer was Pakistan but prices in the country had fallen 9.8%. Vietnam saw rises in tea value in Indonesia, Malaysia, Philippines and China.
Vietnam is the fifth biggest tea exporter. However, its export value is only 60-70% of average world prices, the lowest in the region, and adding to that is unstable markets.
Vietnamese tea prices in early 2016 dropped by 6.6% to USD1,160 a tonne due to hygiene problem and low quality as farmers continued to misuse pesticides. Farmers also used chemicals that have been banned or not recommended, leading to many shipments being rejected and returned.
The traders often collect tea from various areas at unreasonable prices, pushing up the final costs and causing management issues which lead to shorter expiry dates.
The Ministry of Industry and Trade said the authorities must focus on technology and establish stable farms for export. Firms should establish a common plant protection centre to control the use of pesticides.
The Ministry of Agriculture and Rural Development also said they would give priority to safe farm planning along with boosting production.
