Vietnamese tea exporting and forecasting to 2030

ISSN 2588-1299  
VJAS 2020; 3(2): 636-646  
Vietnam Journal  
of Agricultural  
Sciences  
Vietnamese Tea Exporting and Forecasting  
to 2030  
To The Nguyen1,2, Nguyen Anh Tuan2 & Le Phuong Thao1  
1Faculty of Economics and Rural Development, Vietnam National University of Agriculture,  
Hanoi 131000, Vietnam  
2Faculty of Political Economics, Vietnam National University, Hanoi 122000, Vietnam  
Abstract  
This study aimed to determine the factors influencing Vietnamese tea  
export quantities, namely, the internal factors of national tea  
production, productivity, and cultivated areas, and the external  
factors of export price and world tea export quantity (excluding  
Vietnam). We employed a time-series linear model to estimate the  
magnitude as well as the sign of the aforementioned factors on  
Vietnam’s tea export quantity and two Box-Cox transformations  
called a simple back-transformed forecast and a bias-adjustment to  
forecast the growth rate of the Vietnamese tea export quantity until  
2030. The results suggested that except for the total domestic tea  
production, all the proposed factors significantly affected the  
Vietnamese tea export quantity. The tea export quantity of other  
nations around the world had a significantly negative impact on  
Vietnamese tea that led to Vietnam’s tea exports dropping by 34 tons  
on average since the other countries exported 1,000 tons of tea. The  
forecasted outcome suggested an upward trend of Vietnamese tea  
exports up to 2030. In order to sustainably develop Vietnam’s tea  
industry, we recommend that the government should take supportive  
actions such as investing in in-depth tea processing to improve  
Vietnam’s tea export quality, focusing on post-harvest activities,  
investing in organic or high-value tea rather than conventional tea,  
continuing to accumulate land to support the growth of cultivated  
tea areas, and maintaining high productivity by using hybrid seeds.  
Keywords  
Tea export, Vietnam, forecast  
Received: July 3, 2020  
Accepted: August 20, 2020  
Introduction  
Correspondence to  
Coffee, tea, and pepper are the three main industrial crops of  
Vietnam that have significantly contributed to Vietnam’s GDP after  
Doi Moi (Tuan, 2019). Recently, tea has become an important crop  
because it offers certain advantages, in particular, it may help to fight  
against erosion and runoff in the mountains. It also helps to further  
ORCID  
To The Nguyen  
255X  
636  
Vietnam Journal of Agricultural Sciences  
To The Nguyen et al. (2020)  
combat poverty in rural regions because it can  
bring daily income for farmers. According to  
Vitas (2012), Vietnam had approximately 400  
thousand tea producers almost a decade ago,  
mostly concentrated in major producing regions  
such as the North Mountain (about 60%) and the  
Central Highlands (about 20%). Furthermore, the  
tea sector in Vietnam is occupied by six million  
rural workers. However, the size of average tea  
production remains relatively small, about 70%  
of households grow tea on an area of less than 0.2  
hectares.  
from 1990 to 2010, Vietnam witnessed an  
increase in tea production in general. The  
quantity of tea production consequently  
increased by about 9.05 tons at the same time. In  
1990, the total tea production was about 32  
thousand tons; meanwhile, it reached about 216  
thousand tons in 2012 (Vitas, 2012). Notably,  
this production was distributed between small  
farmers (70%) and large public agricultural  
institutions (30%). In a GSO report (2019), the  
total tea production of Vietnam continued to  
grow annually up to 994.2 thousand tons in 2018  
with a cultivation area of 108.3 thousand ha.  
Notably, tea production is generally present  
in the six regions of Vietnam, namely the  
Northwest, Northeast, North Mountain, North  
Central, Central Highlands, and Central Coast.  
Tea production is concentrated in such provinces  
as Phu Tho, Thai Nguyen, Yen Bai, Lam Dong,  
and Gia Lai, among others. The North Mountain  
region includes some provinces such as Phu Tho,  
Thai Nguyen, and Yen Bai. This region accounts  
for about 60% of the total area of tea plantations  
in Vietnam. Meanwhile, the Central Highlands  
region includes Lam Dong and Gia Lai. This  
region represents more than 20% of the total tea  
area in Vietnam (Table 1).  
Petrakis et al. (2015) argued that the global  
economic development had slowed down since  
the Great Recession in 2008, followed by the  
unstable economic development that affected  
fluctuations in the quantities of tea exports. GSO  
(2019) reported that Vietnam’s exported tea  
quantity witnessed a downfall in the period of  
2013-2016; meanwhile, the aforementioned tea  
production and cultivation areas kept growing. In  
addition, the global tea sector witnessed an  
increase in tea export quantity in this period  
(FAO, 2018). The situation raised three research  
objectives. Initially, an overview of Vietnam tea  
was required as a systematical report to fully  
capture the overall picture of Vietnam’s tea  
industry development after Doi Moi. Secondly,  
what were the determinants of tea export  
quantity, namely the total tea production, tea  
production areas, tea productivity, and tea price,  
that empirically affected the reduction of  
Vietnam’s tea export quantity? Thirdly,  
predictions about tea export quantities in the  
In detail, the production of tea in Vietnam  
has increased significantly since the 90s, mainly  
due to the expansion of tea production areas and  
the growth of tea productivity. In the year 1990,  
tea in Vietnam was grown on about 44 thousand  
hectares. However, this area increased by 2.5  
times in 2012. During the period from 1990 to  
2010, the amount of land used for growing tea  
increased by 4.46%. Similarly, during the period  
Table 1. Distribution of tea area in Vietnam (%)  
Year  
Region  
2002  
2003  
2004  
2005  
2006  
2007  
2008  
2018  
North Mountain  
Central Highlands  
Northwest  
57.98  
23.78  
7.27  
7.25  
2.32  
1.40  
58.21  
22.62  
7.47  
7.93  
2.50  
1.27  
58.14  
22.07  
7.68  
7.29  
2.57  
2.25  
57.13  
21.41  
9.25  
8.06  
1.98  
2.17  
56.99  
20.83  
9.75  
8.08  
2.24  
2.11  
56.87  
20.84  
9.72  
8.17  
2.32  
2.08  
57.05  
21.07  
9.54  
8.02  
2.27  
2.05  
81.94  
12.56  
13.58  
11.22  
5.06  
North Central  
Northeast  
Central Coast  
6.01  
Source: GSO (2019) and our calculations  
637  
Vietnamese tea exporting and forecasting to 2030  
coming years should be estimated to provide an  
outlook for policymakers as well as tea farmers  
to help them decide whether to focus on tea  
exports or the domestic market.  
total tea production, tea production area, tea  
productivity, and tea export price.  
The time-series linear regression was used to  
estimate the impact of tea export quantity  
determinants such as the total domestic  
production, tea production areas, tea  
productivity, and tea export price, and was  
indicated as a general form provided in the  
studies of Serletis (1992), Uk Polo (1994), and  
Amirkhalkhali & Dar (1995):  
Our analysis used a regression model to  
gather all the potential determinants influencing  
Vietnam’s tea export quantity as the regression  
input, namely tea production, tea production  
areas, tea productivity, and tea price (Kingu,  
2016), and world tea output (Miano, 2010).  
Accordingly,  
a
forecasting function was  
퐸푥푝표푟푡푡 = 훼1푡  
+
훽1푡푃푟표푑푡 + 훽2푡퐴푟푒푎푡 +  
employed to estimate the quantity of tea exports  
with Box-Cox transformations to correct the bias  
caused when using time-series data. This gave  
median forecasts on the original scale.  
훽3푡푃푟표푑푢푐푡푖푣푖푡푦푡 + 훽4푡푃푟푖푐푒푡 + 훽5푡푊푝푟표푑푡 휀푡  
(1)  
where Exportt is the dependent variable  
which was the quantity of Vietnam’s tea exports,  
the independent variables included Prodt, Areat,  
Productivityt, Pricet,and Wprodt, and finally εt is  
the error term. Prodt stands for total tea domestic  
production at time t. Similarly, Areat,  
Productivityt, and Pricet are the total planted  
areas, productivity, and price of Vietnamese tea  
at time t, respectively. Lastly, Wprodt is the  
world total tea production with Vietnam  
excluded.  
Methodology  
Data collection  
Our study employed secondary data to  
gather  
a
sufficient amount of required  
information to input into our models as well as  
our predicted tea export quantity for the next 10  
years. The secondary data were sourced from the  
annual reports of FAO about Vietnam’s tea  
export quantity, total domestic production  
quantity, and total production areas, total world  
production, and lastly, the export price for  
Vietnamese tea. We also sought and gathered  
data from the Vietnam General Statistics Office  
related to tea cultivation land area in the whole  
territory up to 2018. The data range was from  
1961 up to 2018 because having time-series data  
containing 58 years might increase the reliability  
of our results. The data we collected were based  
on our research concerns in the previous section  
that principally contained information of the tea  
production situation of Vietnam for 58 years  
such as the total planted area, total output, total  
productivity, tea price, and total world tea-  
producing quantity.  
To our forecast function, we used the Box-  
Cox transformation (back-transform). If the data  
show variation that increases or decreases with  
the level of the series, then a transformation can  
be useful. For example,  
a
logarithmic  
transformation is often useful. If we denote the  
original observations as Export1,..,Export58 and  
the transformed observations as w1,..,w58 we can  
calculate the following formula: w1,..,58  
=
log(Export1,..,58). One useful feature of log  
transformations is that they constrain the  
forecasts to stay positive on the original scale. A  
useful family of transformations that includes  
both logarithms and power transformations is the  
family of Box-Cox transformations, which  
depend on the parameter λ and are defined as  
follows:  
Data analysis  
(2)  
The descriptive statistical method was used  
for the analyses to synthesize the mean values of  
the employed variables which are illustrated in  
Table 5 representing the characteristics of the  
where t runs from 1 to 58. However, one  
issue with using mathematical transformations  
such as Box-Cox transformations is that the  
Vietnam Journal of Agricultural Sciences  
638  
To The Nguyen et al. (2020)  
back-transformed point forecast will not be the  
mean of the forecast distribution. In fact, it will  
usually be the median of the forecast distribution  
(assuming that the distribution on the  
transformed space is symmetric). For many  
purposes, this is acceptable, but occasionally the  
mean forecast is required. For example, you may  
wish to add up sales forecasts from various  
regions to form a forecast for the whole country.  
But medians do not add up, whereas means do.  
The difference between the simple back-  
transformed forecast and the mean given by bias-  
adjustment is called the bias. When we use the  
mean, rather than the median, our analysis  
estimates for the point forecasts have been bias-  
adjusted.  
productivity, for instance, the productivity of the  
traditional tea variety Trung-Du is about 4 tons  
per hectare, and the productivity of the other old  
tea variety, PH1, has about 6.5 tons per hectare  
(Cuong, 2006). Meanwhile, in other regions, tea  
producers began growing new varieties of tea  
that have higher productivity, such as in Son La  
where the average productivity reached 12 tons  
per hectare (Tran et al., 2004). According to  
Saigenji & Zeller (2009), there is also a big  
difference between the productivity of small  
farmers and big farmers, or non-contract and  
contract farmers (3.3 and 9.6 tons per hectare,  
respectively).  
In addition, approximately 70% of the tea  
produced in Vietnam was exported. In particular,  
tea is exported through three main ways: (i) state  
enterprises; (ii) joint ventures and foreign  
companies; and (iii) private companies. Notably,  
about 98% of tea exports are in the form of raw  
materials. This explains why tea exporters do not  
have a high added value. Regarding the exported  
tea, Vietnamese tea is exported to more than one  
hundred countries around the world, although  
the tea exports are focused mainly on such  
countries as Pakistan, Russia, Taiwan, Iraq,  
China, and India.  
Results and Discussion  
Overview of tea production and exports in  
Vietnam  
During the period from 2005 to 2012, tea  
productivity increased by about 4.73% per year.  
However, as can be seen in Table 2, the tea  
export quantity of Vietnam tremendously  
decreased from 2013 to 2016 (3.12%), and then  
quickly boosted from 2017 to 2018 (4.56%),  
which signifies a good sign that the tea industry  
of Vietnam was able to quickly adapt to changes.  
According to Table 3, Taiwan and Pakistan  
were the two largest importers of Vietnamese tea,  
which accounted for roughly 35% of the total  
quantity of tea exported in the period of 2000 to  
2018. Russia was the third-largest importer of  
Vietnamese tea with an export value reaching  
12.88 million dollars and holding about 10% of  
the market share of Vietnam’s tea exports.  
Moreover, the growth rate of the export value  
increased by 21% per year. Iraq was also one of  
the largest importers of Vietnamese tea and held  
around 8% of the market share of Vietnam’s tea  
exports. The average tea export value reached  
Furthermore, the productivity of tea depends  
on the tea varieties, farming techniques, and  
surface and environmental conditions specific to  
the geographical position of the plantations.  
There are many varieties of tea in Vietnam such  
as Bat Tien, LDP1, TRI 777, Trung-Du, PH1,  
and PH3, among others. However, some old  
varieties of tea such as Trung-Du and PH1 still  
make up the majority, and hence, the strategy of  
Vietnam is to gradually replace these old  
varieties. In general, old varieties of tea bring low  
Table 2. The growth of tea production in Vietnam (1990-2018) (%)  
Periods  
1990-1997  
1998-2004  
2005-2012  
2013-2016  
2017-2018  
Average  
Surface Area  
Productivity  
Production  
6.26  
1.98  
8.36  
5.54  
7.32  
2.45  
4.73  
7.29  
2.34  
3.12  
5.12  
4.01  
4.56  
6.14  
4.46  
4.39  
9.05  
13.26  
Source: FAOSTAT (2018) and our calculations.  
639  
Vietnamese tea exporting and forecasting to 2030  
10.42 million dollars. Nevertheless, the growth  
rate of the export value decreased by 23% per  
year. Similarly, China was also a vital tea market  
for Vietnam. The average export value of tea  
reached around 6 million dollars. Although it  
held just 7.8% of the market share of Vietnamese  
tea exports, the growth rate of the export value  
increased significantly. It increased on average  
42% per year in recent years. Besides, the growth  
rate of the tea export value in India decreased by  
6% per year.  
in recent years the growth rate of the tea export  
quantity tended to decrease. Although export  
quantities decreased by 12.68% in the period of  
1990 to 1997, it strongly increased during the  
period 1998 to 2004, reaching 21.08%, and then  
decreased by 7.57% during the period from 2005  
to 2012. However, from 2013-2016, Vietnam  
witnessed a significant drop in the tea export  
quantity leading to the decrease of the tea export  
value by 1.27%.  
On the contrary, the growth rate of the tea  
export value tended to increase, which explains  
why tea exports in Vietnam have made  
considerable progress by diminishing the volume  
Table 4 shows that the growth rate of the tea  
export quantity increased an average of 10.57%  
during the period from 1990 to 2018. However,  
Table 3. The main export markets of Vietnamese tea in the period of 2000-2018  
Country  
Market share (%)  
Exports value (million USD)  
Growth (%)  
Pakistan  
Taiwan  
Russia  
Iraq  
20.85  
14.48  
9.99  
8.08  
6.10  
3.59  
3.07  
2.90  
2.52  
2.30  
2.21  
2.18  
1.22  
1.07  
1.02  
26.88  
18.66  
12.88  
10.42  
7.86  
4.62  
3.96  
3.73  
3.25  
2.96  
2.85  
2.81  
1,57  
1.37  
1.32  
16.4  
10.8  
21.1  
-23.3  
42.4  
-6.0  
China  
India  
Indonesia  
Germany  
UAE  
27.3  
12.6  
34.4  
29.1  
7.6  
USA  
Poland  
Saudi Arabia  
Japan  
25.1  
-9.9  
Philippines  
Malaysia  
56.4  
28.6  
Source: FAO (2018) and our calculations.  
Table 4. Growth rate of tea export quantity and value in Vietnam (1990-2018)  
Periods  
1990-1997  
12.68  
1998-2004  
21.08  
2005-2012  
7.57  
2013-2016  
-5.58  
2017-2018  
15.78  
Average  
10.57  
Exports quantity (%)  
Exports value (%)  
11.80  
11.44  
12.75  
-1.27  
11.73  
10.56  
Exports quantity (000 tons)  
Exports value (mil. USD)  
19.21  
61.73  
120.25  
161.56  
80.42  
158.34  
265.95  
97.32  
24.12  
68.64  
109.43  
105.51  
Source: FAO (2018) and our calculations.  
Vietnam Journal of Agricultural Sciences  
640  
To The Nguyen et al. (2020)  
and improving the quality. To be more precise,  
as shown in Table 4, the export value increased  
around 11.8% in the period of 1990 to 1997, by  
11.4% in the period of 1998 to 2004, and by  
12.75% in the period of 2005 to 2012. Overall,  
the growth rate of the tea export value increased  
by 10.56% during the period from 1990 to 2018.  
On the contrary, under the impact of global tea  
demand, the growth rate of the tea export  
quantity and value were reduced by 5.58% and  
1.27%, respectively, in the period of 2013-2016.  
Since 2017, the tea export quantity has  
significantly increased, followed by the tea  
export value. As can also be seen from a set of  
sub-figures in Figure 1, the phenomenon of  
decreased tea export quantity is illustrated while  
the production quantity, production areas, and  
productivity continued to grow.  
period from 1998-2004, and by 161.5 million  
dollars in the period of 2005 to 2012. Overall,  
the value of the exported tea increased on  
average by 105.51 million dollars during the  
period from 1990 till 2018.  
Figure 2 indicates the relationship between  
the regressor, namely the tea export quantity, and  
the explanatory variables. It can be seen that  
except for the export price, all the remaining  
regressands are more likely to explain the tea  
export quantity. This is not unexpected because  
the tea export price depended on the global  
market price while tea production was still based  
on the national production capacity.  
Determinants of Vietnamese tea export quantity  
The descriptive collected data are displayed  
in Table 5. We can easily observe the large  
standard deviations of each variable in the table  
that explicitly signify changes in the tea export  
quantity and total production quantity. On  
average, Vietnam has exported 40.91 tons of tea  
to the world market with a price of USD 1,230  
per ton. The tea export price was less likely to  
change throughout the 58 years, which can be  
seen by the relatively small standard deviation at  
USD 0.27 per kg. As can be seen in Figure 3, the  
tea production quantity had a large expansion  
from 2000 up to 2018, followed by tea  
productivity that implicitly indicates the latent  
effectiveness of Vietnamese government policies  
in terms of stimulating the development of the tea  
Under different aspects, Table 4 also shows  
that the quantity of the exported tea had increased  
by an average of 97.32 thousand tons during the  
period from 1990 till 2018. Although it decreased  
by roughly 40 thousand tons in the period of  
2013-2016, during the preceding period from  
2005 to 2012 it increased by 120.2 thousand tons,  
and increased by 77.92 thousand tons during the  
period from 2017 to 2018. Similarly, the value  
of the exported tea increased more significantly  
than the quantity of the exported tea. To be more  
precise, as shown in Table 4, the value grew by  
24.1 million dollars in the period of 1990 to  
1997, rose by 68.6 million dollars in the next  
(a) Export quantity vs. productivity from  
1961 to 2018  
(b) Export quantity vs. export price from  
1961 to 2018  
Figure 1. Time trend of Vietnam’s export quantity and other criteria from 1961 to 2018  
641  
Vietnamese tea exporting and forecasting to 2030  
150  
100  
200  
series  
Export.QuanV  
AreaV  
series  
Export.QuanV  
QuanV  
change  
100  
change  
50  
0
2020  
1960  
2000  
1960  
2000  
1980  
1980  
2020  
Year  
Year  
(a) Export quantity vs. production quantity  
from 1961 to 2018  
(b) Export quantity vs. production area from  
1961 to 2018  
150  
150  
100  
change  
series  
100  
series  
Export.QuanV  
Export.QuanV  
ProdV  
change  
50  
Export.price  
50  
0
0
1960  
1980  
2000  
2020  
1960  
1980  
2000  
2020  
Year  
Year  
(c) Export quantity vs. productivity from  
1961 to 2018  
(d) Export quantity vs. export price from  
1961 to 2018  
Figure 2. Vietnam export quantity and other criteria from 1961 to 2018  
Table 5. Descriptive statistics for the characteristics of Vietnamese tea (n = 58)  
Variable  
Unit  
Mean  
40.91  
59.91  
74.50  
9.45  
Std.Dev.  
48.36  
34.14  
80.52  
5.47  
Tea export quantity  
Total production area  
Total production quantity  
Tea productivity  
103 tons  
103 ha  
103 tons  
tons ha-1  
USD kg-1  
103 tons  
Tea export price  
1.23  
0.27  
World production  
2820.19  
1481.47  
Vietnam Journal of Agricultural Sciences  
642  
To The Nguyen et al. (2020)  
industry in Vietnam since 2000 via each 5-year  
planning stage.  
The export price was significantly positive, while  
the world quantity was significantly negative.  
Our results represent the true story of every  
single commercial agricultural product entering  
the global market. When the price went up and  
the global demand did not change or increased,  
we tended to export more. On the other hand,  
other countries that export tea are Vietnam’s  
competitors in the global market and as a result,  
when the tea quantity of other tea exporters  
increased by 1,000 tons, our tea export quantity  
dropped by 34 tons (Table 6). To be competitive  
at the global scale, we need appropriate solutions  
to acquire a larger market share for stably  
developing the tea exports of Vietnam.  
All the general information of the regression  
promised a good model. Specifically, except for  
the total tea production, which had a negative and  
insignificant impact, the production area, export  
price, and tea productivity had positive  
significant effects on the tea export quantity of  
Vietnam. On average, when the cultivated tea  
area increased by 1,000ha, the tea export quantity  
grew by 1,307 tons (Table 6). This signifies the  
suitability of land accumulation legislated by the  
government to increase the quantity of tea  
produced in the coming years. Similarly, when  
the tea productivity increased by 1 ton per ha, the  
tea export quantity grew by 12.096 tons, on  
average, when the other variables were held  
constant. This indicates the importance of  
enhancing tea productivity to the produced  
quantity as well as the total export quantity in  
which the opportunity of acquiring a larger  
market share of Vietnamese tea might become  
possible. The total produced quantity had a  
negative but insignificant impact on the tea  
export quantity; however, this points out that the  
majority of tea produced in Vietnam had been  
used domestically rather than exported. This also  
latently indicated that the global demand for  
Vietnamese tea had fallen leading to unexported  
tea being consumed nationally. In addition, the  
latent explanation for this issue might come from  
the rumor of “dirty tea” from Vietnam that  
directly led to the difficulty in exporting  
Vietnamese tea in the period 2013-2016.  
Forecasting Vietnam’s tea export quantity to  
2030  
In Table 7, we observe the prediction results  
of Vietnam’s tea export quantity up to 2030. The  
predictions inform us that in 2019, the expected  
total tea export quantity should have reached  
180.986 thousand tons, meanwhile, the total  
export value in 2030 might increase 231% as  
compared to that in 2019. However, the predicted  
increment pace using a conventional back-  
transformation was lower than using the bias-  
adjustment  
method from  
a
Box-Cox  
transformation. The bias-adjustment forecasted  
that the growth rate of the tea export quantity  
could reach 291% in a period of 12 years. The  
prediction is robust evidence for Vietnamese tea  
producers and policymakers to construct  
appropriate strategies for improving tea exports  
as well as acquiring of a larger market share for  
Vietnam in the global tea market.  
Regarding the external factors, the tea export  
price and total global tea production had inverse  
impacts on the Vietnamese tea export quantity.  
Furthermore, we attempted to predict the  
Table 6. Summary of the time-series linear model  
Variable  
Intercept  
Coefficient  
Std.Error  
16.118  
0.171  
t-value  
(-3.375)  
(-0.911)  
(4.773)  
(1.816)  
(2.761)  
(-4.525)  
-54.397∗∗∗  
-0.206  
Total quantity  
Production area  
Export price  
Productivity  
World quantity  
1.307∗∗∗  
11.715∗  
12.096∗∗  
-0.034∗∗∗  
0.012  
0.017  
0.002  
0.299  
Notes: z-statistics are in the parentheses; ∗, ∗∗ and ∗∗∗ indicate significance at the 10%, 5%, and 1% levels, respectively.  
643  
Vietnamese tea exporting and forecasting to 2030  
Table 7. Forecasting using Box-Cox transformation  
Year  
2019  
2020  
2021  
2022  
2023  
2024  
2025  
2026  
2027  
2028  
2029  
2030  
Back-transformation  
180.986  
Bias-adjustment  
187.081  
207.141  
229.209  
253.478  
280.158  
309.478  
341.691  
377.071  
415.917  
458.559  
505.353  
556.691  
Low 95  
108.826  
98.925  
93.161  
89.479  
87.071  
85.533  
84.632  
84.229  
84.227  
84.565  
85.196  
86.089  
High 95  
300.993  
385.824  
477.385  
579.143  
693.489  
822.603  
968.704  
1134.162  
1321.562  
1533.757  
1773.913  
2045.548  
195.366  
210.887  
227.643  
245.730  
265.253  
286.328  
309.077  
333.634  
360.142  
388.756  
419.643  
export quantity of Vietnam in the next 10 years  
by using Box-Cox transformations called simple  
back-transformed forecasts (median) and bias-  
adjustments (mean). When we used the mean,  
rather than the median, our analysis estimated the  
point forecasts based on a bias-adjustment.  
Figure 3 illustrates the forecasted changes of tea  
exports up to 2030 using the two methods. It can  
easily be seen that the tea export quantity  
potentially grows at a significantly high rate. The  
bias-adjustment method gave us a higher  
increment pace of tea export quantity compared  
to the conventional back-transformed forecast.  
Therefore, in order to sustainably develop  
Vietnam’s tea industry, the government needs to  
take supportive actions such as investing in in-  
depth tea processing to improve Vietnam’s tea  
export quality, focusing on post-harvest  
activities, investing in organic or high-value tea  
rather than conventional tea, continuing to  
accumulate land to support the growth of  
cultivated tea areas, and maintaining high  
productivity by using hybrid seeds.  
that Sri Lanka also possessed a bright future of  
either producing or exporting tea in larger  
quantities. In addition, Chang (2015) predicted  
an increment of global tea export quantity up to  
2030. In this context, the Vietnamese tea sector  
should rely on these published data to carefully  
plan for developing tea production effectively  
and sustainably.  
Conclusions  
The study provided an overview of the  
Vietnamese tea export situation across 58 years  
from 1961 to 2018. Generally, the tea exports of  
Vietnam have had an upward trend, however,  
Vietnam witnessed a significant fall of the tea  
export quantity during 2013-2016, although the  
tea export price slightly increased. We employed  
a time-series linear model to estimate the  
relationship between the tea export quantity and  
its determinants. Except for the total domestic  
quantity, the production area, export price, and  
productivity had positively significant impacts  
on the tea export quantity, while the world tea  
production had a negatively significant effect.  
The two major competitors of Vietnamese  
tea exports, India and Sri Lanka, have also been  
predicted to have an upward trend of total tea  
production. Ghosh (2017) studied the potential  
trend of India’s tea exports using 79 months of  
data and produced results similar to ours.  
Similarly, Kumarasinghe et al. (2018) argued  
Our results suggested that in areas where tea  
was planted, tea productivity increased the tea  
export quantity, meanwhile, due to the rise of  
other countries exporting tea of a higher quality  
than Vietnamese tea, the tea export quantity led  
Vietnam Journal of Agricultural Sciences  
644  
To The Nguyen et al. (2020)  
Forecasts from ETS(A,A,N)  
1500  
1000  
Quantity of  
tea export  
Forecast  
Biased adjusted  
Simple back transformation  
500  
0
1960  
1980  
2000  
2020  
Year  
Figure 3. Forecasting the trend of Vietnamese tea export quantity  
to the downfall of tea exports. The tea price had  
the least fluctuation, which could potentially  
secure a good fortune if Vietnam could export a  
larger tea quantity. Therefore, in order to  
sustainably develop Vietnam’s tea industry, the  
government needs to take supportive actions  
such as investing in in-depth tea processing to  
improve Vietnam’s tea export quality, focusing  
on post-harvest activities, investing in organic or  
high-value tea rather than conventional tea,  
continuing to accumulate land to support the  
growth of cultivated tea areas, and maintaining  
high productivity by using hybrid seeds.  
developed in order to increase the consumption  
of domestic tea. Our analysis opened the door for  
further research on Vietnamese tea exports in  
order to account for the impacts of the Trans-  
Pacific Partnership (TPP) and Regional  
Comprehensive Economic Partnership (RCEP).  
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Box-Cox transformations called simple  
back-transformed forecasts and bias-adjustments  
were used to forecast the growth rate of  
Vietnamese tea export quantities until 2030. Our  
result forecasted an upward trend for Vietnamese  
tea export quantities up to 2030, which signifies  
a bright future for the export of Vietnamese tea.  
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