Higher Prices Cushion Vietnam’s Tea Export Decline as Pakistan Shipments Slump
Vietnam exported about 70,500 tonnes of tea worth nearly $129 million in the first seven and a half months of 2026. Volume fell more than 10% year on year, but improved average prices limited the decline in revenue as exporters expanded beyond Pakistan.
Export revenue proves more resilient than volume
Vietnam exported 6,097 tonnes of tea worth more than $12 million in the first half of August 2026, according to customs data reported by Thuong Hieu & Cong Luan. Across the first seven months and the first half of August, shipments reached about 70,500 tonnes, generating nearly $129 million.
Export volume was down more than 10% from the same period of 2025. Revenue declined by less than physical shipments, however, because the average export price improved. The figures indicate that higher unit values are partly cushioning the industry from weaker overseas demand, although the source did not provide an exact average price or revenue comparison.
Vietnam is among the world’s major tea exporters and has about 130,000 hectares under tea cultivation. Its farms produce nearly 1 million tonnes of fresh tea buds annually. Yet the gap between this agricultural scale and export earnings remains tied to processing, product standards, traceability and branding. A continued reliance on minimally processed tea would limit the scope for further price gains.
Pakistan’s share drops as other markets expand
The sharpest change has occurred in Pakistan, traditionally a major destination for Vietnamese tea. Shipments to the country fell by about 67% year on year during the first seven months. Pakistan’s share of total export volume consequently dropped from more than 33% to about 12%, showing how quickly weaker demand in one large market can affect the national industry.
Taiwan, China, moved into second place after importing about 7,800 tonnes, while the value of shipments to that market increased by 12%. Mainland China ranked third even though export volume declined by about 19%. Vietnamese suppliers also expanded sales in the United States, Russia, Malaysia, the Philippines, Turkey, Germany and Ukraine. Turkey recorded the most striking increase, with shipment volume rising by more than 280%.
This change in destination mix gives exporters an opportunity to pursue markets able to pay more for differentiated products. It does not yet remove concentration risk: Pakistan still accounts for a substantial share, while growth in newer destinations starts from varying bases. Maintaining better average prices will depend on product quality and the durability of demand in these markets, not simply on replacing lost tonnage.
Traceability and processing shape the next stage
Nguyen Dinh Tho of the Institute of Strategy and Policy on Agriculture and Environment identified 2026-2030 as an important period for reorganising the tea value chain, raising quality standards and moving from raw-material exports toward higher-value products. That requires longer-term contracts among companies, cooperatives and growers, alongside clear production requirements and transparent pricing.
Thai Nguyen province provides one model. It has established 149 GPS-located tea-growing area codes covering more than 900 hectares, including 25 codes serving exports. Another 45 cooperative groups, cooperatives and companies have received guidance on using digital platforms such as VNPT Green to manage cultivation records. By 2030, the province aims to map at least 70% of its tea area through GIS and have 100% of businesses and cooperatives with raw-material zones apply digital technology at an appropriate level.
Controls over fertiliser, crop-protection products, water, pre-harvest intervals and picking practices are increasingly important for destinations with strict food-safety and residue requirements. Standards including VietGAP, organic certification, HACCP and ISO can improve transparency, but investment is also needed after harvesting.
Tea bags, blends, herbal tea, instant tea, bottled tea and fermented products offer routes into higher-value segments. For speciality tea, geographical indications, packaging, consistent standards and a clear origin story can support stronger pricing. The 2026 figures therefore present two signals: export volumes remain under pressure, but improved prices and a broader market base provide a path to protect earnings if processors can deliver more traceable and differentiated products.
