Hanoi (VNA) - ꦅThe market share of Vietnam’s coffee in the UK’s total import fell to 17.04% in 2021 from 23.03% in 2020. That is the key reason why the Ministry of Industry and Trade is telling firms to quickly take advantage of the chances created by the United Kingdom – Vietnam Free Trade Agreement (UKVFTA) to help firms increase market share and revenues.

Coffee export to UK cools to 17.04% of the market

Citing data from the International Trade Centre, a representative of the Import-Export Department under the Ministry of Industry and Trade said that in 2021, the UK imported 203,380 tonnes with a value of 945.56 million USD. This is down by 12.7% and 6.2% respectively compared to those recorded a year earlier. In 2021, the average coffee import price in the UK was 4,649 USD per tonne, an increase of 7.5% over that in 2020. The highest increase was recorded in the import from Colombia, at 18.6%; and the lowest, from Vietnam at 6.7%. Coffee exports to the UK from Vietnam last year fell by 35.5% in volume and 31.1% in value compared to those a year earlier, registering 34,650 tonnes and 66.16 million USD. The market share of Vietnam’s coffee in the UK’s total import fell to 17.04% in 2021 from 23.03% in 2020. Also according to the ministry, in 2020 and 2021, the UK coffee import fell as a result of the COVID-19 pandemic. The growth of the trade of agricultural exports in general and coffee in particular this year is forecast to increase on signals the UK economy is reccovering, coupled with the efforts by Vietnamese firms as well as the assistance from national trade promotion programmes.

Taking advantage created from UKVFTA

The ministry said the UK government is currently implementing a trade strategy of “Global Britain” with a view to pushing exports. The UK is ready to open the domestic market in a reciprocal format with foreign partners through the FTAs. The advocacy of inheriting all the FTAs of the European Union (EU) is a positive trend on the basis of consensus reached with the signatories of those FTAs, including the EU-Vietnam Free Trade Agreement (EVFTA). Besides, the UK is also determined to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This means the country is ready to open its market to various products of the other 11 members of the deal in exchange for the right to access the preferential markets for UK firms’ exports. Many of Vietnam’s exports to the UK will then have to compete against strong rivals from CPTPP countries. Luong Hoang Thai, Director of the Multilateral Trade Policy under the Ministry of Industry and Trade, said the implementation of the UKVFTA has partly helped the two sides overcome difficulties caused by the COVID-19 pandemic and served as a factor that helps ease the burden for both economies in the context of the disruption of the supply chain. In the opinion of Nguyen Khanh Ngoc, Deputy Director of the Europe-America Market Department under the ministry, many of Vietnam’s agricultural products in the recent past were seen on the shelf of various supermarkets in the UK. However, she added, exporters should invest in popularising their trademarks for a better foothold in the market. Vietnamese firms should quickly take advantage of the chances created by the UKVFTA to build partnerships with major distribution groups, she stressed. To stabilise the coffee export, Vietnam’s coffee industry needs to meet the more and more stringent requirements and the taste of the UK consumers./.