Statistics released by the International Trade Centre indicate that France’s six-month coffee imports from Vietnam reached approximately 12,930 tonnes, worth a total of US$21.12 million, down 36.3% in volume and 39.0% in value year on year.
As a result, Vietnamese coffee’s market share as part of France’s total imports decreased from 10.6% to 6.25% this year.
This fall can largely be attributed to France’s shift in importing different varieties of coffee, with a primary focus on purchasing processed coffee coded HS 090121, while simultaneously decreasing imports of raw coffee coded HS 090111.
Most notably, Vietnam primarily exports raw coffee coded HS090111 to the European country, accounting for 99.69% of total export value during the six-month period.
Vietnam is currently the second largest coffee exporter in the world behind Brazil. In addition, markets that have signed free trade agreements (FTAs) with Vietnam also offer preferential tax rates between 0% and 5% for Vietnamese processed coffee products.
The enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) has served to slash import tariff for all coffee products to 0%.
Coffee ranks among the country’s 39 geographical indications that the EU is committed to protecting following the enforcement of the EVFTA.
These moves are set to bring about a huge competitive advantages for the Vietnamese coffee industry in comparison to other rivals in the EU market, including the French market.
Despite these benefits, Vietnamese businesses have yet to see many gains from the EVFTA as local coffee exports mainly consist of raw coffee, while the coffee products that enjoy tax incentives are typically processed.
To increase the value of coffee exports to the French market, experts have advised the Vietnamese coffee industry to change the export structure, diversify varieties, and strive to increase exports of processed coffee suitable for the high-end market segment.
