Unmanufactured tobacco and refuse market in Vietnam

Earlier Report Observations

The market for unmanufactured tobacco in Vietnam began the period under a framework of state control, with import volumes regulated by annual quotas and Vinataba designated as the sole importer under state trading rules. These measures, alongside a shift in product mix toward mid and premium segments, coincided with a contraction in the overall market volume to 71 522 t in 2019 from 79 922 t the previous year, as import supplies tightened. The market stabilized around 71 477 t in 2020, a year which also saw the active participation of foreign players like Philip Morris and British American Tobacco through joint ventures, introducing new dynamics to the local industry.

Market volume expanded strongly to over 100 000 t by 2022, driven by a concurrent rise in domestic production and imports. This growth phase was interrupted in 2023 when the market contracted to 92 476 t. The decline aligned with the Ministry of Industry and Trade's Circular 43/2023, which strengthened market oversight, introduced more frequent reporting requirements for suppliers, and intensified anti-smuggling operations, factors that likely constrained import flows that year.

Looking ahead, the government approved a development strategy for the tobacco industry focusing on technological modernization and environmentally friendly processing. For 2024, an import tariff quota of 71 835 t was set for unmanufactured tobacco, with actual imports reaching 70 006 t. Concurrently, a ban on e-cigarettes and heated tobacco products was enacted to protect public health, a measure that may influence the demand for traditional tobacco leaf, while state-owned Vinataba reported increased domestic market share and a significant boost in exports.

Production unmanufactured tobacco and refuse in Vietnam

In kind, 2017-2020, t

Globally, Vietnam ranked as the 20th largest producer of unmanufactured tobacco and refuse from 2017 to 2020.

Top producers of unmanufactured tobacco and refuse, 2017-2020

World map of production of unmanufactured tobacco and refuse, 2017-2020

Vietnam's production of unmanufactured tobacco and refuse declined for the third year in a row. In 2020, the country produced 29 238 tons, marking a slight decrease of 2.5% compared to the previous year. From 2017 to 2020, overall production fell by 8.8%, which translates to an annualized decline of 3.0%.

Annual dynamics of production in Vietnam in kind, 2017-2020, t

Exports unmanufactured tobacco and refuse from Vietnam

Exports in kind, t

In 2020, Vietnam exported 6 148 tons of unmanufactured tobacco and refuse, showing a modest reduction of 5.2% from 2019. Over the period from 2017 to 2020, exports dropped by 41%, with an annualized rate of 16.1%. The lowest export volume was recorded in 2018 at 5 821 tons. The largest decline occurred in 2018, with a 44.1% decrease, while the biggest increase was in 2019, at 11.5%.

Annual dynamics of product's exports from Vietnam in kind, 2017-2020, t

From 2017 to 2020, three key markets—Cambodia, Indonesia, and the United Arab Emirates—accounted for 64.8% of Vietnam's total exports of unmanufactured tobacco and refuse by volume.

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, M $ US

In 2020, Vietnam's exports of unmanufactured tobacco and refuse in value terms amounted to 13.6 million US dollars, reflecting a sharp decline of 54.2% compared to 2019. Between 2017 and 2020, export value decreased by 64.4%, with an annualized rate of 29.1%. The largest increase was recorded in 2019, at 7.6%.

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

From 2017 to 2020, Cambodia (22.3% of export value), Indonesia (19.6%), and the United Arab Emirates (18.2%) were the primary partners for Vietnam's exports of unmanufactured tobacco and refuse in value terms, together making up 60.0% of total flows.

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

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

Imports unmanufactured tobacco and refuse to Vietnam

Imports in kind, t

After two years of decline, Vietnam's imports of unmanufactured tobacco and refuse increased in 2020. The country imported 48 387 tons, showing a small rise of 0.8% from the previous year. Over the 2017-2020 period, imports decreased by 14.3%, with a compound annual growth rate of -5.0%. The lowest import volume was in 2019 at 48 024 tons, and the largest decline occurred that same year, with an 11.6% drop.

Annual dynamics of product's imports to Vietnam in kind, 2017-2020, t

From 2017 to 2020, China (32.8% of import volume), Brazil (30.4%), and Indonesia (11.1%) were the leading sources for Vietnam's imports of unmanufactured tobacco and refuse by volume, together representing 74.3% 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, M $ US

Vietnam's imports of unmanufactured tobacco and refuse in value terms declined for the second consecutive year. In 2020, imports totaled 228.1 million US dollars, down by 4.8% year-over-year. Over the 2017-2020 period, import value fell by 20.2%, with a compound annual growth rate of -7.2%. The highest value was recorded in 2018 at 289.7 million US dollars. The largest decline was in 2019, with a 17.3% decrease, while the biggest increase was in 2018, at 1.4%.

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

From 2017 to 2020, three main markets—China, Brazil, and Indonesia—together accounted for 72.0% of Vietnam's total imports of unmanufactured tobacco and refuse in value terms.

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

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