AsemconnectVietnam - In the context of fierce competition and significant pressure on export prices, effectively utilizing preferential C/Os in FTAs is not just a technical tool, but is gradually becoming a strategic competitive advantage, determining the tea industry's ability to maintain and expand its market share.

Preferential C/Os: from administrative procedures to competitive advantage
According to the data from the Import-Export Department, citing statistics from the Customs Department, in November of 2025, Vietnam exported more than 13,440 tonnes of tea, worth US$24.79 million, a strong increase in both quantity and value compared to the previous month and the same period of 2024. This signals a positive recovery trend in the short term, after many months of the tea industry facing double pressure from weak demand and falling export prices.
In the first 11 months of 2025, the country’s total tea exports reached 122.77 thousand tonnes, valued at US$212.4 million.
However, the overall picture for the first 11 months of 2025 still clearly reflects structural difficulties. The otal tea exports reached 122,770 tonnes, valued at US$212.4 million, a decrease of 8.5% and 9% respectively compared to the same period in 2024. Although the average export price has shown signs of increasing in recent months, it still decreased by 0.5% overall, indicating that price competition pressure from major exporting countries has not diminished.
In this context, the issue of product origin and the utilization of preferential Certificates of Origin (C/O) in FTAs is emerging as a "soft leverage" with a hard impact on the competitiveness of Vietnamese tea.
In the first 11 months of 2025, tea exports using Certificates of Origin (C/O) reached US$98.7 million, accounting for a significant proportion of the total export value of the entire industry. Of this, C/O Form B – a non-preferential type of C/O primarily used to verify Vietnamese origin – accounted for US$47 million.
Conversely, tea exports using preferential C/Os are showing noteworthy positive signs. C/O Form EAV under the Vietnam-EAEU Free Trade Agreement reached nearly US$5.9 million, opening up opportunities for the Russian and Eurasian markets, despite a decline in overall export value to Russia. C/O Form D exports to ASEAN reached over US$1.8 million; C/O Form EUR.1 exports to the EU reached US$1.64 million; C/O Form AANZ reached over US$1 million; and C/O CPTPP reached US$769,000.
These figures, while not large compared to the total export value, are significant, as tea is a product almost "born" to take advantage of FTA preferences, due to its pure origin, simple regulations, and almost absolute compliance rate if businesses comply correctly and fully.
For many years, the origin of goods has been viewed more as an administrative procedure than a competitive advantage. Many tea exporting businesses still accept selling under MFN tariff conditions, ignoring FTA preferences, due to concerns about procedures and documentation, or because they lack a specific market strategy linked to FTAs.
Meanwhile, in highly competitive markets such as the EU, ASEAN, or CPTPP, even a few percent difference in tariffs is enough to create a significant difference in selling prices, especially for mid-range products – the segment where Vietnamese tea is most present.
Leveraging FTAs to restructure the tea export market
The structure of the tea export market in 2025 showed a clear shift. Taiwan (China) rose to become the largest market in November of 2025, but overall for the first 11 months, it still recorded a decrease in volume. Pakistan – the largest traditional market for many years – continued to experience a sharp decline in both volume and value. Conversely, some markets such as Malaysia, India, Saudi Arabia, and the United States recorded double-digit growth.
Tea export turnover using preferential Certificates of Origin (C/O) is showing noteworthy positive signs
This differentiation highlights the urgent need to restructure the tea export market, in which FTAs should be considered a guiding "compass". Markets with FTAs, clearly preferential tariff rates, stable or increasing demand should be prioritized in terms of product strategy, raw material areas, and processing investment.
Although the EU's use of EUR.1 Certificates of Origin (C/O) is still modest, the EVFTA brings significant tariff advantages to Vietnamese tea. ASEAN, with its C/O form D, is a nearby market with low logistics costs and a growing consumer preference for health-beneficial products. The CPTPP opens up opportunities in high-end markets such as Canada, Australia, and New Zealand – where consumers are willing to pay higher prices for organic and specialty teas.
Even the United States, despite not having a bilateral FTA, currently enjoys preferential tariff rates, even 0% for many product lines. According to Mr. Hoang Vinh Long, Chairman of the Vietnam Tea Association, this market could become a "strategic anchor," helping the tea industry reduce its dependence on traditional markets while promoting the development of high-end, organic, and high-value-added products.
Conversely, failing to make good use of preferential Certificates of Origin (C/O) will cause Vietnamese tea to lose its advantage even in a "playing field" where it has the most favorable conditions.
In the context of deep integration, the origin of goods is no longer just about "benefiting from low tariffs." Markets are increasingly interested in the entire value chain: from cultivation, processing, labor, environment to social responsibility. For tea – a product closely linked to the raw material areas and livelihoods of hundreds of thousands of farming households – this is both a challenge and an opportunity.
Only when businesses master the rules of origin, closely connect with the raw material areas, invest in deep processing, and make the supply chain transparent will preferential Certificates of Origin (C/O) truly be effective. At that point, tariff preferences from FTAs will become a crucial "support," giving Vietnamese tea a clear competitive advantage in price and enhancing its image in the international market.
Amidst declines in many key markets, positive growth in Thailand and China is expected to help the tea industry maintain stability in the remaining months of 2025. Furthermore, the sustainable development path of the tea industry lies not only in production volume or selling price, but also in the ability to transform product origin into a strategic advantage – a true "passport" for Vietnamese tea to go further and sustainably within the global FTA network.
CK
Source: VITIC/moit.gov.vn