Why does Vietnamese tea sell below the world average price? Because most of it leaves the country as unbranded bulk tea from fragmented small farms, processed in factories of uneven quality. Vietnamese officials put the country’s average export price at about 55–65% of the world average: around 1,700 USD per tonne, against roughly 2,600 USD. The same tea that sells for 1.7 USD per kilo at export can retail for 7 to 20 USD per kilo inside Vietnam. This article explains the gap and what is starting to close it.
The price gap in numbers
| Measure | Figure | Source |
|---|---|---|
| Vietnam average export price, 2025 | About 1,737 USD/t (136,952 t for close to 238 million USD) | VnEconomy, citing Vietnam Customs, February 2026 |
| Compared with the world average | About 55–65%; world average about 2,600 USD/t in 2023 | Báo Chính phủ, February 2026; VnEconomy, January 2024 |
| Compared with top exporters | About 65% of the leading exporters’ average and 55% of India and Sri Lanka | Nhân Dân, December 2024 |
| Export vs domestic price | About 1.7 USD/kg exported, about 4 USD/kg average at home, 7–20 USD/kg retail in Thai Nguyen, Ha Giang and Son La | VnEconomy, November 2024 |
| Recent movement | August 2026 average 2,088 USD/t, up 17.7% year on year | Thuế & Hải quan Online, October 2026 |
Five reasons for the gap
1. Bulk raw material, not branded tea
Most Vietnamese tea is exported as unbranded green or black tea for blending, re-packing or further processing. Buyers pay for volume and specification, not for origin. In China, for example, Vietnamese tea arrived in 2024 at about 1.4 USD per kg, around half of China’s average import price.
2. Small, fragmented farms
The average tea household farms about 0.2 hectares, and smallholders hold around 65% of the tea area. When a factory buys leaf from hundreds of small gardens, it is hard to control picking standards, inputs and freshness, and hard to prove them to a buyer.
3. Uneven processing
A ministry assessment cited by VnEconomy found that of 257 industrial tea processors, only about 20% fully met standards, about 60% met them partly and about 20% were makeshift. The Department of Crop Production estimated that finished Vietnamese tea is worth about 70–75% of comparable products on the world market.
4. Weak links between factories and gardens
Only about 10% of factories have their own or tightly linked growing areas. Without that link, it is difficult to guarantee residue levels, traceability or consistent quality, which are exactly what high-paying markets ask for.
5. Few recognised brands abroad
Vietnam is the world’s second-largest green tea exporter by FAO’s count, but few Vietnamese tea names are known to foreign consumers. Names such as “Chè Thái Nguyên” are now protected in several markets, but they are rarely seen on shop shelves abroad.
Which markets pay more
Average prices differ widely by market. In 2023 Vietnam’s tea sold to Pakistan averaged about 1,933 USD per tonne, above the national average. In the first five months of 2026, tea sold to Taiwan averaged about 1,912 USD per tonne, while China paid about 1,420 USD in 2024. Markets that buy specific grades for their own processing or retail tend to pay more than those buying raw material for blending.
What is closing the gap
- Specialty grades. Oolong earned about 2,900 USD per tonne in 2023, and bud and needle teas fetch far higher prices than bulk grades.
- Certified gardens. Thai Nguyen had close to 6,000 hectares under VietGAP by 2025 and aims for 70% of its tea area under GAP or organic standards by 2030.
- Processing upgrades. Factories with food safety systems such as ISO 22000 can sell to more demanding buyers.
- Origin and brand. Selling tea under a named area and brand, with documents, lets buyers pay for what they can verify.
Where TRAVINA fits
We do not compete on the lowest price per tonne. Our cooperative of 90 households in Dai Tu and La Bang sells graded Thai Nguyen tea with garden information, an ISO 22000:2018 certified processing facility at La Bang, and test reports. We quote EXW in USD based on grade and quantity. See bulk tea export and our certificates, and for market background Vietnam tea export statistics 2025.
Frequently asked questions
How much does Vietnamese tea cost per kilo for export?
The national average was about 1.7 USD per kilo in 2025. Specialty grades cost several times more.
Why is Vietnamese tea cheaper than Sri Lankan or Indian tea?
Mainly because more of it is sold as unbranded bulk tea from small farms with uneven processing, while those countries have established export brands and auctions.
Is cheaper Vietnamese tea lower quality?
Not necessarily. Much of the price gap is about branding, traceability and documentation. But bulk tea varies, so test reports and samples matter.
Are Vietnamese export prices rising?
In 2026 the average export price has risen even as volumes fell, reaching 2,088 USD per tonne in August, 17.7% higher than a year earlier.
Sources
- VnEconomy, citing Vietnam Customs, 11 February 2026: vneconomy.vn
- Báo Chính phủ (via Thương hiệu & Công luận), 28 February 2026: thuonghieucongluan.com.vn
- VnEconomy, factory assessment and world price, 11 January 2024: vneconomy.vn
- Nhân Dân, Vietnamese export prices, 14 December 2024: nhandan.vn
- VnEconomy, tea industry forum on export and domestic prices, 6 November 2024: vneconomy.vn
- Department of Crop Production, Báo Nông nghiệp (English edition), 5 November 2024: van.nongnghiepmoitruong.vn
- Thuế & Hải quan Online, eight-month 2026 data, 1 October 2026: thuehaiquan.tapchikinhtetaichinh.vn
- CafeF, citing Vietnam Customs, 2023 markets, 15 January 2024: cafef.vn
- Trung tâm WTO (VCCI), five-month 2026 data, 22 June 2026: trungtamwto.vn
Looking for value rather than the lowest price? Contact TRAVINA for graded samples and an EXW quote.
