Massive market measurement
The RoK is the world’s second-largest espresso shopper market, valued at roughly US$6.5 billion. Younger Koreans, particularly, drink a median of 2-3 cups of espresso per day. Vietnamese espresso exported to the RoK primarily contains uncooked espresso, prompt, and canned merchandise. Whereas this market phase has proven restricted development, the in-store filter espresso product line is estimated to be price US$4 billion, presenting a major alternative for deep Vietnamese penetration into this market.
|A Vietnamese espresso store within the RoK|
Nonetheless, Vietnam’s espresso export to the RoK has been hampered by the predominance of Robusta espresso, whereas Koreans desire Arabica espresso attributable to its perceived greater high quality and decrease caffeine degree. To deal with this situation, the Vietnam Commerce Workplace within the RoK helps assess the market and develop methods to extend Vietnamese espresso consumption amongst Koreans. One thought being promoted to inculcate Vietnamese espresso consuming habits amongst Koreans is for Vietnamese startups to open small espresso store chains within the RoK. A consultant of the Vietnam Commerce Workplace within the RoK believes this might improve espresso export turnover to the RoK past its present US$92 million degree.
Regardless of its export potential, Vietnamese espresso faces stiff competitors from different producing international locations like Brazil, Colombia, Ethiopia, and Guatemala within the RoK market. Moreover, rising enter prices pose a major problem for Vietnam’s espresso business.
Duong Khanh Toan, a consultant of Me Trang Espresso Joint Inventory Firm, suggests the federal government undertake sensible and advantageous lending insurance policies to help companies in rising output and discovering export markets. Regardless of hostile market circumstances, exporting companies have demonstrated that they will successfully carry overseas money again residence, and due to this fact deserve extra lively help.
Market promotion actions
To assist Vietnamese enterprises in boosting exports to the RoK market, the Vietnam Commerce Workplace within the RoK plans a spread of commerce promotion actions in 2023. These embody taking part in specialised gala’s and exhibitions to successfully showcase Vietnamese merchandise, facilitating commerce connections between companies and enterprise associations of the 2 international locations via common on-line and offline platforms, and arranging for RoK enterprise delegations to go to Vietnam to discover commerce and funding alternatives.
As well as, the consultant of the Vietnam Commerce Workplace within the RoK recommends that companies concentrate on key components reminiscent of secure manufacturing, security, integrity in processing and circulation, and credibility in dedication, to make sure that their export merchandise succeed within the RoK market. By assembly these standards, companies will probably be higher positioned to barter and keep long-term partnerships with RoK companions.
Localities, associations and companies are additionally suggested to take a position time in researching and analyzing the RoK market to find out which merchandise are most fitted for particular shopper segments, and to know the technical and particular requirements required, such because the Optimistic Record System (PLS) for pesticide residue. Home enterprises also needs to recurrently ship product data and commerce and funding cooperation must their RoK counterparts, and take part in gala’s, seminars, and conferences organized by the federal government to facilitate efficient communication and alternate with RoK companies.
|Within the first two months of 2023, Vietnam exported 6,431 tonnes of espresso to the RoK, producing income of over US$13 million, in line with Common Division of Vietnam Customs knowledge.|