Grape wine market in Vietnam

Earlier Report Observations

The grape wine market in Vietnam contracted from 22 407 тыс. л in 2018 to 14 696 тыс. л in 2020. This decline coincided with the introduction of Decree 15/2018/ND-CP, which mandated import licenses and food safety declarations for wine, increasing compliance costs for businesses. The regulatory pressure intensified in 2020 with Decree 17/2020/ND-CP, which updated import procedures and expanded documentation requirements under Circular 38/2015/TT-BTC, further restraining import volumes and contributing to lower domestic production.

Following a slight decrease to 14 330 тыс. л in 2021, the market rebounded to 19 180 тыс. л in 2022. This recovery was primarily driven by a reduction in the special consumption tax rate for wine under the CPTPP and AANZFTA trade agreements, which lowered the tax from 27% toward 15%, making imported wine more competitive and stimulating import growth. Despite the simultaneous enforcement of stricter labeling rules under Decree 128/2020/ND-CP, the tax incentive provided a strong boost to market volume.

In 2023, the market volume fell to 16 639 тыс. л as tighter implementation of labeling regulations under Decree 128/2020/ND-CP and Circular 39/2018/TT-BTC took effect. These rules required imported wine to carry Vietnamese-language auxiliary labels with health warnings and storage instructions, increasing costs and customs clearance times for importers, which curtailed import flows and offset a concurrent rise in domestic production.

Production grape wine in Vietnam

In kind, 2017-2020, K l

Top producers of grape wine, 2017-2020

World map of production of grape wine, 2017-2020

The market showed an unstable trend over the period. Production reached its lowest point in 2017 and peaked in 2018, with a two-fold difference between these years. In 2020, Vietnam produced 9 254 K l of grape wine, representing a 25.8% decline compared to the previous year. The highest production volume was recorded in 2018 at 14 085 K l. The largest year-on-year increase occurred in 2018, reaching 100.0%.

Annual dynamics of production in Vietnam in kind, 2017-2020, K l

In value, 2017-2020, K $ US

Market performance displayed noticeable fluctuations during this timeframe. Output values dropped to their minimum in 2017 and climbed to their maximum in 2019, showing a 2.5-fold shift. In 2020, grape wine production in Vietnam was valued at 14 616 K $ US, down by 23.0% from the previous year. The peak value was recorded in 2019 at 18 977 K $ US. The most significant increase took place in 2018, rising by 144.4%.

Annual dynamics of production in Vietnam in value, 2017-2020, K $ US

Exports grape wine from Vietnam

Exports in kind, K l

Export performance experienced noticeable fluctuations over the period. The lowest export volume was recorded in 2020, while the highest was in 2017, reflecting a 13.2-fold gap between these years. In 2020, Vietnam exported 308 K l of grape wine, which is 77.5% lower than the previous year. The largest year-on-year increase occurred in 2019, reaching 24.7%.

Annual dynamics of product's exports from Vietnam in kind, 2017-2020, K l

From 2017 to 2020, France and the United Arab Emirates formed the dominant pair of markets for Vietnam's grape wine exports in volume terms, jointly accounting for 98.0% of total flows, while other countries represented the remaining share.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Vietnam in kind, 2017-2020

Exports in value, K $ US

The market exhibited an unstable trend throughout the timeframe. Export values reached their minimum in 2020 and peaked in 2017, with a top-to-bottom ratio of 9.2 times. In 2020, Vietnam exported 486 K $ US worth of grape wine, corresponding to a 76.6% reduction compared to the previous year. The largest increase was recorded in 2019, rising by 42.2%.

Annual dynamics of product's exports from Vietnam in value, 2017-2020, K $ US

Throughout 2017–2020, France and the United Arab Emirates clearly dominated Vietnam's grape wine exports in value terms, jointly accounting for 94.2% of total flows, while other countries held much smaller shares.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Vietnam in value, 2017-2020

Imports grape wine to Vietnam

Imports in kind, K l

After increasing for two years, grape wine imports to Vietnam declined. Imports reached their maximum in 2019 at 10 033 K l and dropped to 5 750 K l in 2020, down by 42.7% versus the previous year. Over the 2017-2020 period, imports decreased by 33.5%, with a compound annual growth rate (CAGR) of -12.7%. The largest year-on-year increase occurred in 2019, rising by 9.1%.

Annual dynamics of product's imports to Vietnam in kind, 2017-2020, K l

In 2017–2020, Chile (28.2% of imports in volume), France (27.9% of imports in volume), and Italy (19.3% of imports in volume) were the main sources in the geographical breakdown of grape wine imports to Vietnam, together comprising 75.4% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Vietnam in kind, 2017-2020

Imports in value, K $ US

After advancing for two years, grape wine import values to Vietnam declined. Imports peaked in 2019 at 29 510 K $ US and fell to 16 536 K $ US in 2020, down by 44.0% compared to 2019. Over the 2017-2020 period, imports decreased by 27.5%, with a compound annual growth rate (CAGR) of -10.2%. The largest increase was recorded in 2018, rising by 21.5%.

Annual dynamics of product's imports to Vietnam in value, 2017-2020, K $ US

In 2017–2020, Chile (26.9% of imports in value), France (24.9% of imports in value), and Italy (23.2% of imports in value) accounted for the largest share of Vietnam's grape wine imports in value terms, together comprising 74.9% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Vietnam in value, 2017-2020