Algeria is a market full of potential for Vietnamese coffee exports. Coffee is currently the leading Vietnamese export product to Algeria. In addition to bucket coffee, Vietnamese companies can promote higher value-added processed and instant coffee exports.
Coffee is the favorite drink of Algerians, each adult consumes 3 to 4 kg per year. This North African country imports about 130,000 tons of coffee beans worth about $300 million a year. Robusta coffee represents more than 85% of the total value of imports. Besides Vietnam, Ivory Coast, Indonesia, Brazil, Italy and Uganda are the main suppliers of coffee to the Algerian market.
According to Vietnamese Customs, in 2018, Vietnam exported 74,120 tons of green coffee beans to Algeria for an amount of 132.48 million dollars. Vietnamese coffee exports to Algeria reached 56,545 tons in 2021 to generate a turnover of 99.68 million dollars, a decrease of 6.8% in volume but a growth of 6.3% in value on a year. During the first half of 2022, coffee shipments to the Algerian market amounted to 21,164 tonnes (-14%) for 42.8 million dollars (+7%). Thus, Algeria is one of Vietnam’s 10 largest coffee export markets.
The taste of Vietnamese coffee is loved by many local consumers. Recently, the Vietnamese Ministry of Industry and Trade has organized many activities to promote the trade of agricultural products, especially coffee, in this market.
However, Vietnamese coffee exports still face many difficulties, as Algeria imposes relatively high customs duties on coffee imports, up to 63%, including 30% import tax on goods, 19% value added tax (VAT) and 10% domestic consumption tax.
Moreover, this country only allows the import of raw materials, so the processed coffee brands of Vietnamese companies are not present in its market. In addition, the Algerian side imposes many strict requirements on roasted and processed coffee. For example, the proportion of sugar should not be more than 3% of the amount of roasted coffee or the water or moisture content less than 12.5%. It is allowed to mix different types of coffee (Arabica, Robusta) and coffee from other countries like Brazil, Colombia, Vietnam, etc.
Most popular types of coffee drinks
How to find partners?
According to Hoang Duc Nhuan, Vietnam Trade Advisor in Algeria, the Algerian market has a demand for importing Vietnam’s flagship products such as coffee, pepper, cashew nuts, freshwater aquatic products, etc. that Algeria cannot produce.
He suggested that Vietnamese companies seek partners in Algeria by participating in trade promotion programs, fairs and exhibitions, business forums, etc. In addition, companies can also search for customers on the foreign market portal of the Ministry of Industry and Trade, as well as in the latest list of Algerian coffee importers.
In Algeria, Internet fraud is not common. However, companies should be careful when looking for customers online or cooperating with partners who are actively finding Vietnamese companies through their websites.
Vietnam is the world’s second-largest coffee exporter. It exports to more than 80 countries and territories, representing 14.2% of the world market share. Coffee is also one of the six export products of the country with an annual turnover of more than three billion dollars.
According to the Vietnam Coffee and Cocoa Association (Vicofa), the main importers of Vietnamese coffee are Europe, the United States, Russia, Japan, and the United Kingdom. In Europe, Vietnam is the second supplier, just behind Brazil, occupying 16.1% of the market share.
According to the General Department of Customs, from January to August, 1.24 million tons of coffee of all categories were exported with a value of 2.82 billion dollars, an increase of 14.7% and 39.6% respectively. % on an annual basis.
Vietnam is the world’s second-largest coffee exporter.
Last year, Vietnamese coffee exports reached 1.56 million tons worth $3.07 billion, down 0.2% in volume but up 12.1% in value from to 2020. The export price was 1,966 dollars per ton, an increase of 12.3% compared to 2020.
Algeria remains one of the economic giants of the African continent, the 4th economy in Africa and the 2nd economy in North Africa. Located at the crossroads of three worlds, Mediterranean, Arab and African, Algeria occupies a strategic geographical position which it wants to take advantage of today to diversify its economy and promote its exports. With a population of over 44 million, Algeria needs to import goods where Vietnam has strengths, especially agricultural products such as coffee, pepper, cashew nuts and seafood, among others.
Although it is a potential market and an important gateway for Vietnamese companies to increase investment and trade cooperation with African countries, bilateral trade between the two countries is still modest.
According to statistics from the Ministry of Industry and Trade, due to the COVID-19 pandemic and Algeria’s import restriction policy, Vietnamese exports to this market reached $151.1 million in 2021 and $65.2 million in the first five months of 2022, up 17.6% year-over-year.
In addition to coffee, Algeria imports 100,000 tons of rice each year from Vietnam, mainly 5% broken rice, and parboiled rice, for Asians living on its soil. Rice is a subsidized product, so the import tax is quite low compared to the common ground, only 16%. Spices such as pepper and cinnamon are also in high demand in Algeria along with cashews.
Seafood products are also in the top 5 export products with the biggest turnover from Vietnam to Algeria. When exporting goods to the Algerian market, according to the Department of Trade Promotion, companies must have a good understanding of the market as well as policies on tariffs, labor laws, payment methods and mortgage competition, non-payment, debt collection, etc. -VNA
