Tea production is one of the strengths of Vietnamese agriculture. This industry is highly appreciated because Vietnamese tea products not only meet domestic consumption needs but are also exported to international markets.
Tea products play an important role in the total export turnover of agriculture, forestry, and fishery products in Vietnam's agricultural sector. Up to now, Vietnamese tea products have been available in more than 100 countries and territories worldwide, with an annual export value of about USD 200 million.
According to statistics from the General Department of Customs, in 2022, the entire export industry reached 146 thousand tons with a value of USD 236 million, marking a rise of more than 15.2% in volume and over 10.6% in value compared to 2021. Black tea accounts for 43.0% of the volume, while green tea (including marinated flower tea, jasmine tea, and Oolong tea) accounts for 54% of the export volume.
Vietnam ranks fifth in tea-growing area and sixth in the ranking of tea production worldwide (2020). Currently, Vietnam has 34 provinces and cities growing tea, covering a total area of up to 130 thousand hectares, with 170 tea varieties creating an output of 1.02 million tons of fresh tea buds/year, equivalent to a dry tea output of 196 thousand tons (2022).
Some provinces in our country with large tea-growing areas are Thai Nguyen (22.3 thousand hectares), Lam Dong (10.8 thousand hectares), and Phu Tho (16.1 thousand hectares). These areas also serve as the raw material source for some of our country's major tea production and export companies such as Cozy Tea, Phu Tho New Generation, Vinatea, and Asia Tea,... These companies not only bring economic benefits to the country but also help promote the image of Vietnamese tea and tea culture to international friends.
Some products of Vietnamese tea production brands
Cozy is the tea brand of ECO Products Joint Stock Company, part of the New Generation tea group, which represents a pure Vietnamese tea brand offering consumers tea product lines with attractive, delicious flavors: instant tea, tea bags, instant tea, and loose tea. In addition, Cozy is also a leading brand in creating modern consumer trends and styles, enriching Vietnamese tea culture.
In the period 2020-2021, Cozy's net revenue tended to increase slightly by about 12%. Revenue then had a breakthrough, climbing by about 80% and reaching more than VND 960 billion in 2022. With that trend, the brand's profit after tax also grew sharply in 2022, 5 times higher than the previous year, achieving an early VND 6700 billion.
FCG - Future Generation Company
Phu Tho Future Generation Company Limited (FGC Cozy Tea Brand) was established in 1996. After nearly 30 years of formation and development, the company has become the largest corporation in the Vietnamese tea industry with 15 factories and tea machines across the country.
Currently, FGC's total annual export revenue amounts to nearly 20,000 tons of tea. The company's products have been exported to 50 countries worldwide. With a large number of factories, plantations, and modern processing technology, FGC can provide a variety of products offering many options for customers.
In 2022, FGC continued to show positive growth momentum with net revenue standing at nearly VND 750 billion, far exceeding the figure of about VND 240 billion in 2020. Profit after tax also went up considerably, reaching more than VND 80 billion by 2022, about 3 to 4 times higher than the previous 2 years.
Net revenue of the company producing and processing tea products in Vietnam
Vietnam Tea Corporation - Joint Stock Company (Vinatea, JSC.) was formerly a state-owned enterprise established in 1958. Vinatea owns tea-growing material areas and tea factories spread throughout the Northern provinces. Vietnam achieved international certification for sustainable agricultural development.
Vinatea has more than 50 years of experience providing clean tea products, ensuring quality, and meeting the needs of both Vietnamese and international tea lovers. Currently, the company has commercial relationships with over 120 companies and commercial organizations in over 50 countries and territories.
Vinatea had net revenue growing steadily year after year, with a growth rate of 12% per year. In 2022, the brand's net revenue recorded nearly VND 315 billion. However, contrary to the net revenue trend, the company's profit after-tax situation was not very positive as it continuously suffered losses in the 2020-2021 period. Entering 2022, the profit situation had a more positive signal when peaking at VND 1.5 billion.
Asia Tea Company Limited, established on February 20, 2004, is also one of the leading tea manufacturing and exporting enterprises in Vietnam. Up to now, the company has produced over 10 thousand tons of tea annually from fresh and refined tea leaves for export, with the capacity in subsequent years expected to exceed 12 thousand tons/year.
Tea products include Orthodox black tea, CTC, green tea, and flavored tea, packaged in various ways to serve the domestic market and mostly exported to foreign markets.
Net revenue of Asian tea decreased slightly in 2021, and then returned to an increasing trend in 2022, achieving more than VND 240 billion. Regarding profit after tax, the brand's profit fluctuates from year to year. In 2022, although there was revenue growth, profit only reached VND 1.5 billion, about 30% lower than in 2020.
Ssoe Phu Tho Tea
Ssoe Phu Tho Tea Company Limited is a young business established on July 19, 2017. Although in operation for more than 6 years, the company quickly rose to the list of Top 10 Vietnamese enterprises exporting green tea to foreign markets with significant revenue.
Ssoe Phu Tho Company recorded revenue growth in 2022 but profits are still negative and have not shown a positive trend. Specifically, the brand's revenue tends to grow by more than VND 50 billion from 2021 to 2022, reaching VND 170 billion. Meanwhile, the company's profit after tax was not positive, recording a loss of more than VND 5 billion in 2021 to a negative of nearly VND 7 billion in 2022.
Profit after tax of some companies producing tea products in Vietnam
Thien Phu Tea
Thien Phu Tea Joint Stock Company was established on April 6, 2012. With the main business of growing, processing, and exporting green tea products, the company currently has 3 green tea processing factories in three large and high-quality raw material regions of Vietnam.
With 3 factories, the Company produces and exports 2000 tons of green tea annually, including Supe Pekoe green tea, OP, Proken, PS, and BPS,... consumed domestically and exported globally to countries like Taiwan, China, Pakistan, and Afghanistan, among others.
Thien Phu experienced notable fluctuations in net revenue and profit after tax over the past three years. Revenue increased moderately in 2021 but then decreased by more than 20% to more than VND 160 billion in 2022. However, it was worth noting that in 2022, although there was a slight decline in revenue and profit after tax, there was a conversion from loss to positive profit, recording VND 16 million. This could be a positive sign for the company's business operations.
Nam Long Tea
Nam Long Tea Company Limited, established in 2007, processes and exports all kinds of tea: black tea, green tea, packaged tea, and other goods like gifts. Over the years, Nam Long Co., Ltd has acquired a high position in the international tea market as a reliable supplier. The company has built a large market in Indonesia, Malaysia, Korea, India, among others.
Nam Long Tea had net revenue growing quite steadily in the period 2020-2022. In 2022, revenue reached nearly VND 115 billion, a climb of 26.5% compared to the previous year. However, what is worth noting is the contrast between revenue growth and profit after tax. In the previous two years, Nam Long Tea recorded positive profits, but by 2022, profit after tax dropped sharply, down to negative VND 850 million.
Bien Ho Tea
Bien Ho Tea Joint Stock Company, formerly known as Bien Ho tea plantation built by the French in 1921, is a famous brand with vast green tea hills in Gia Lai province. The company has an average garden productivity of over 12 tons of fresh tea buds/ha. The brand's green tea products are exported to Afghanistan, Pakistan, and Singapore, accounting for over 70% of the market share.
Revenue and profit after tax of Bien Ho Tea have the same growth trend. Despite a moderate decrease in net revenue and profit after tax in 2021, the brand quickly returned to growth in 2022, recording revenue of more than VND 93 billion along with a profit of nearly VND 550 million.
With support policies and improved farming techniques from the Government, new trade policies, export tax reduction and financial support for small producers deployed, Vietnamese tea output and productivity have grown continuously from 2001 to the present.
Thanks to these efforts, Vietnam is now one of the world's leading producers of green and black tea, with an estimated 40% of Vietnam's total tea exports sold abroad. However, although the production volume of Vietnam's Tea industry is reported to have increased, export prices have tended to fall. The main reason for this trend is that processing factories mainly source ingredients from unqualified tea. In addition, Vietnam's tea industry is also facing competitive pressure from China and India.
Therefore, to improve competition, businesses in this field need to focus on product quality, maintain food hygiene and safety, and strengthen cooperation in the value chain. Attracting investment and building a brand is also important to raise awareness and appeal to international customers.
Source: Vietdata's 2022 Vietnam Tea Production Market Report