Ample room remains for coffee exports to Spain

Sunday, 23/10/2022 18:00
There is ample room for growth for Vietnamese coffee exports as Spain’s coffee segment is expected to grow by 6.84% in 2022-2025 period, Vietnam News Agency quoted figures of the Vietnamese Trade Office in Spain.
Illustrative image. (Photo: VNA)

A survey in the Spainish market showed that up to 87% of its popoulation aging between 18 and 64 drink coffee and 70% do so daily. The average is 2.2 cups a day and the prefered place is at home (61%), followed by bars or restaurants (26%) and work (21%).

To promote sustainable export of agricultural commodities in general and coffee in particular to this market, the Trade Office asked for collaboration from localities and trade associations to hold online and in-person workshops to introduce business opportunities to exporters, as well as hold more trips to Spain to connect Vietnamese importers, distributors and major supermarkets with Spanish partners.

It also emphasised the importance of maintaining quality and brand for Vietnamese products in this market.

Vietnamese ministries and agencies should partner with the office to accelerate the organisation of the first meeting of the Inter-Governmental Committee on Economic, Trade and Investment Cooperation to seek solutions to trade barriers, the office said.

Data from the General Department of Customs showed that Vietnam exported 5,240 tonnes of coffee to Spain in September this year, worth 13.1 million USD , down 14.4% in volume and 7.1% in value against the previous month, reported the Foreign Trade Office under the Ministry of Industry and Trade. However, the figure increased by 11.5% in volume and by 37.4% in value compared to September last year.

Ample room remains for coffee exports to Spain. (Photo: CPV)

Shipment from Vietnam to Spain reached 71,700 tonnes, worth 160.81 million USD, a year-on-year rise of 40.4% in volume and 63.4% in value.

The average export price of coffee in the first nine months of this year was 2,245 USD per tonne, up 16.7% year-on-year.

Spain's coffee imports from non-EU supply in the first seven months of 2022 reached 165,730 tonnes, worth 524.1 million euros, up 17.4% in volume and 100.8% in value. Of which, Vietnam is the largest source for the country with an import volume of 67,200 tonnes.

Particularly, Vietnam's coffee accounted for 30.14% of the total coffee import of Spain in the seven months of this year.

Exports bring in more than 14 billion USD in first half of October

Vietnam raked in more than 14 billion USD from exports in the first half of October, with electronics, garments and footwear bringing in the largest turnover, reported VOV News.

The footwear industry has secured the highest export growth in the first half of October 2022, increasing by 136% over the same period in 2021. (Photo: VOV) 

The General Department of Vietnam Customs reported that the import-export turnover of Vietnam in the period from October 1 to 15, 2022 stood at 27.7 billion USD, up 6.5% year on year.

Of the total turnover, exports brought in 14.1 billion USD, up 7.6%, and imports fetched 13.6 billion USD, up 5.4%.

As a result, Vietnam yielded a trade surplus of 0.5 billion USD in the reviewed period, raising its trade surplus since the beginning of the year to 7.3 billion USD.

Among major hard currency earners in the first half of October, phones and components made up 18% of the total export turnover; computers, electronic products and components 13.4%; and machinery, equipment, tools and spare parts 13%.

Notably, footwear exports secured the highest growth rate, increasing by 136% over the same period in 2021.

Economic recovery plan to boost national growth

Containers being loaded at Tan Cang - Cat Lai Port in HCM City. (Photo: VNA)

Vietnam should focus on accelerating the disbursement of public investment and the economic recovery programme in the next two years to promote national growth, Vietnam News Agency quoted sayings of Le Thi Thuy Van, deputy director of National Institute for Finance under the Ministry of Finance.

Obstacles regarding interest rate support should be removed so that enterprises, cooperatives and households can access capital soon, she said in an interview with Vietnam News Agency on measures that Vietnam should adopt in response to risks from the decline of the global economy.

The implementation of monetary policy should be conducted in a cautious, proactive and flexible manner to ensure interest rate stability as well as to support the economy and stabilise the exchange rate.

Priority should be given to fiscal policy and expanded. Taxes and fees need to be reviewed to provide the best support for businesses to resume production and economic growth.

Measures to control prices, as well as inflation, should be taken to ensure inflation is kept below 4%, Van said.

It is essential for Vietnam to enhance production capacity and build an independent and resilient economy, she said, adding that this orientation will help Vietnam become less dependent on external sources while minimising damage caused by disruptions in global supply chains and from China’s “Zero Covid” policy.

Le Thi Thuy Van, deputy director of National Institute for Finance under the Ministry of Finance. (Photo: VNA)

Given the fact that major economies face the risk of recession, Vietnam must anticipate the challenges that might arise including imported inflation, she noted.

Vietnam could suffer exchange rate fluctuations as the US and Europe hike interest rates which will have an impact on the world financial market.

The State Bank of Vietnam has recently intervened in the foreign exchange market to stabilise the exchange rate, so foreign exchange reserves will be reduced, she said, adding that this is also a challenge.

According to Van, the adjustment of regulatory interest rates by the SBV aims to narrow the gap between the Vietnamese dong and US dollar, thereby stabilising the exchange rate.

However, it also has an impact on the national economy. An increased interest rate will raise the input costs of enterprises, reducing the need for loans to expand production, thereby affecting the growth potential of the economy, she said./.