'I want to handle Vietnamese tea for business, but I don't really know what varieties there are or which growing regions are trustworthy.' Many people feel this way.
It is still not well known in Japan, but Vietnam is one of the world's leading tea-producing countries. Its production and export volumes are expanding year by year, and exports to the Middle East and the West are increasing, not just within Asia.
This article systematically explains Vietnamese tea varieties, main growing regions, export trends and tea culture, with information useful for people in agriculture and food importers.
Why Is Vietnam a 'Tea Powerhouse'?
Vietnam's tea-growing history is said to span more than 3,000 years. The cool climate and rich soil of the northern and central highlands are extremely well suited to growing tea trees.
Today, Vietnam is the world's fifth-largest tea exporter. Its domestic tea-garden area amounts to about 130,000 hectares, and annual production reaches a scale of roughly 1 million tonnes.
Production areas stretch from the northern mountains through the central highlands to the south, and because the climate, elevation and soil differ in each region, a feature is the variety of tea types and flavors that result.
Main Varieties and Their Characteristics
The tea produced in Vietnam can be broadly divided into the following categories.
Green tea (tra xanh)
This is the most-produced type. Vietnamese green tea has less astringency than Japanese green tea and a clean finish. Beyond domestic consumption, large volumes are exported to Pakistan, Iran, Taiwan and elsewhere.
Lotus tea (tra sen)
A processed tea in which green tea leaves take on the fragrance of lotus flowers; it is one of Hanoi's representative traditional teas. The hand-crafted process of packing tea leaves into picked lotus flowers and letting them absorb the scent overnight is distinctive.
High-quality versions can fetch tens of thousands of yen per 100 g, and they are also popular as gifts.
Oolong tea (tra o long)
It is produced mainly in Lam Dong province (around Da Lat), where Taiwanese and Chinese companies have invested locally and worked to improve quality. In recent years, exports to Japan have also grown.
Other Varieties
| Type | Growing region | Characteristics |
|---|---|---|
| Black tea (tra den) | Thai Nguyen, Phu Tho | Fermented tea. Largely exported to the Middle East and Russia |
| White tea (tra trang) | Ha Giang province | Uses only young buds. Highly rare |
| Jasmine tea | Various northern areas | A processed tea with jasmine fragrance imparted to green tea |
| Mata tea (ancient-tree tea) | Ha Giang, Lai Chau provinces | Harvested from old trees over 100 years old. A rare product |
Main Growing Region: Thai Nguyen, the 'Capital of Tea'
Vietnam's largest tea growing region is Thai Nguyen province. Tea gardens are concentrated in hilly terrain about 80 km north of Hanoi, at an elevation of 200-400 m.
The province's tea-garden area is about 22,000 hectares, and about 20% of the country's tea farmers are concentrated in this region. 'Tan Cuong tea' is highly rated at home and abroad as a brand name.
Conditions Supporting the Quality of Thai Nguyen Tea
- Annual precipitation: 1,800-2,200 mm
- Average temperature: 22-25 degrees Celsius (cool nighttime temperatures draw out the umami)
- Soil: red earth rich in iron and minerals
- Harvest season: 8-9 times a year (the first flush is in March-April)
Other Main Growing Regions
| Growing region | Province / area | Main variety |
|---|---|---|
| Tan Cuong | Thai Nguyen province | Green tea and jasmine tea |
| Moc Chau | Son La province | Green tea and oolong tea |
| Bao Loc | Lam Dong province | Oolong tea and green tea |
| Phu Ho | Phu Tho province | Black tea and green tea |
| Ha Giang | Ha Giang province | Ancient-tree tea and white tea |
Export Trends: A Rapidly Growing Overseas Market
Vietnam's tea export volume as of 2023 is about 140,000 tonnes a year, with export value reaching roughly US$230 million.
Main export destinations
About half of the exports go to Asia and the Middle East. Pakistan in particular is the largest destination, accounting for about 30% of the total.
| Export destinations | Share (approximate) | Main Tea Types |
|---|---|---|
| Pakistan | About 30% | Black tea and green tea |
| Taiwan | About 10% | Green tea and oolong tea |
| China | About 8% | Green tea and black tea |
| Russia | About 7% | Black tea |
| Japan | About 4% | Oolong tea and green tea |
| Other | About 41% | Various |
Exports to Japan are small in quantity, but demand for high-value-added, quality-focused and organic-compliant products is rising. For Japanese food importers, it is a market that could become a strong sourcing option going forward.
Challenges and Future Direction
Vietnamese tea's export unit price is low compared with other tea-exporting countries, and strengthening quality control and branding has become a challenge for the whole industry. The government has set a target of raising export value above US$500 million by 2030, and encourages obtaining GI (geographical indication) certification and shifting to organic methods.
Vietnam's Tea Culture and Ways of Drinking
Tea is deeply rooted in the daily life of Vietnamese people. In the north, there is a custom of brewing green tea weak and drinking it from a large pot, and it is indispensable for welcoming guests.
In Hanoi's Old Quarter and in rural areas, the 'street tea culture' of sitting on a small stool and drinking a cup of green tea for 5,000 dong (about 30 yen) is still alive.
In Ho Chi Minh City in the south, meanwhile, bottled iced tea is the mainstay, and bubble tea and matcha-based drinks for young people are also popular.
The Special Standing of Lotus Tea
Lotus tea holds special meaning as Vietnam's 'national gift.' It is indispensable at weddings, during Obon and at Tet (Lunar New Year), and it is prized as a souvenir for foreign guests of honor.
Why Japanese Companies Are Paying Attention to Vietnamese Tea
In the past few years, Japanese food and beverage makers have begun seeking tie-ups with Vietnamese tea growing regions.
The main reasons are as follows.
- Cost advantage: sourcing costs are lower than for Chinese or Taiwanese product
- Quality improvement: the number of GAP- and organic-certified gardens is increasing
- Geographic proximity: roughly 4-5 days by sea freight
- Untapped market: competitors are still few, making differentiation easier
However, quality varies, and the state of compliance with pesticide standards differs by garden, so advance checks are needed when importing. We recommend conducting a site visit and sample inspection before starting a transaction.
Summary
Vietnam has a tea culture spanning more than 3,000 years and, today, is raising its presence as the world's fifth-largest tea exporter.
- The varieties are diverse, including green tea, lotus tea, oolong tea and black tea
- Thai Nguyen province is the largest growing region and has brand power at home and abroad
- Export volume is about 140,000 tonnes a year, a growing market aiming for over US$500 million by 2030
- For Japanese companies, it is an attractive sourcing option in terms of cost, quality and proximity
Vietnamese tea is not merely a cheap raw material but a farm product with its own regional terroir and culture. If you engage with it as a business, taking it on with an understanding of the growing region, variety and processing method leads to long-term relationships.
At VN AGRI, we share the latest information on Vietnamese agriculture.
