Vietnam's coffee market share in total UK imports will decrease from 23.03% in 2020 to 17.04% in 2021.

Therefore, the Ministry of Industry and Trade notes that businesses need to quickly take advantage of opportunities from the UK-Vietnam Free Trade Agreement (UKVFTA) which will help businesses expand export turnover in this market. .

Coffee exports to the UK account for 17.04% of the market share

Citing data from the International Trade Center (ITC), a representative of the Import-Export Department (Ministry of Industry and Trade) said that in 2021, the UK will import 203.38 thousand tons of coffee, worth 945.56 million USD, down 12.7% in volume and 6.2% in value compared to 2020.

In 2021, the average import price of coffee into the UK will reach US$4,649/ton, up 7.5% compared to 2020. In which, the average import price of coffee from most of the main supply sources will increase, except for Indonesia. . The highest price increase of 18.6% came from Colombia; the lowest price increase of 6.7% from Vietnam.

The UK's coffee imports from Vietnam in 2021 will decrease by 35.5% in volume and 31.1% in value compared to 2020, reaching 34.65 thousand tons, worth 66.16 million USD. Vietnam's coffee market share in total UK imports will decrease from 23.03% in 2020 to 17.04% in 2021.

According to the Ministry of Industry and Trade, in two years (2020 and 2021) the UK's coffee imports tend to decrease due to the impact of the COVID-19 pandemic, mainly affecting the non-family and residential coffee segments. The UK still popularized the culture of drinking tea at home.

Coffee consumer tastes in the UK are clearly different from those in other European countries. Instant coffee is the most popular type of coffee among British consumers. Top instant coffee brands reach more consumers than their freshly ground coffee brands.

The growth rate of agricultural trade in general and with coffee in particular in 2022 is forecasted to be positive when the UK economy recovers with the efforts of Vietnamese businesses and the support and guidance of the programs. national trade promotion.

Take advantage of opportunities from UKVFTA

According to the Ministry of Industry and Trade, currently, the British Government has actively implemented the "Global Britain" trade strategy to promote exports.

The UK is also ready to open the domestic market in a "reciprocal" manner with foreign partners through FTAs, and at the same time, promote negotiations for FTAs with 19 countries or the Union of Nations. countries, in which priority is given to major trading partners such as the EU, the US, Japan and India. The policy of inheriting all FTAs of the EU is in effect on the basis of consensus with the signatories of these FTAs, including the Vietnam-EU FTA (EVFTA).

In addition, the UK is also determined to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which means that the UK is ready to open the market for many products of the 11 member countries participating in the Agreement. this in return for preferential market access for the export products of British businesses. At that time, many Vietnamese products in the UK market will have to compete with strong competitors from CPTPP countries.

Luong Hoang Thai, Director of the Multilateral Trade Policy Department (Ministry of Industry and Trade), said that the implementation of the UKVFTA Agreement has partly helped the two sides overcome difficulties caused by the COVID-19 epidemic and is one of the factors that help ease the burden on both economies when supply chains are broken.

“This is one of the Agreements that we have prepared carefully before and have a Master Action Plan issued by the Prime Minister. Besides, Vietnam and the UK have also established regular exchange mechanisms to deal with specific issues arising during the implementation process,” said Mr. Luong Hoang Thai.

According to Ms. Nguyen Khanh Ngoc, Deputy Director of the Europe-America Market Department (Ministry of Industry and Trade), over the past time, many agricultural products and vegetables of Vietnam have been on shelves in UK supermarkets. However, businesses need to invest in enhancing their brands to assert their foothold in this market.

According to a representative of the Ministry of Industry and Trade, Vietnamese businesses need to quickly take advantage of opportunities brought by UKVFTA. In particular, enterprises must organize production according to British and European standards, as well as actively build and develop customer relationships with large distribution groups.

In particular, must be proactive in technology to preserve and transport agricultural products by sea; make good use of preferential credit policies and credit assessment and verification services of British banks' customers.

Particularly for coffee, the UK market is very competitive with imports from many countries. In order for coffee exports to the UK to be stable, Vietnam's coffee industry needs to meet increasingly stringent requirements as well as the consumer tastes of the British people.

According to VNA