Vietnam Eyes Growth in Algerian Coffee Market Following Tax Reductions

Vietnam is poised to capitalize on new opportunities in Algeria’s coffee market after the North African nation slashed import taxes on coffee as part of its 2025 Finance Law. The move, aimed at curbing rising coffee prices, has been welcomed by Vietnam, one of Algeria’s key coffee suppliers.

Under Article 2014 of the 2025 Finance Law, Algeria has exempted coffee imports from value-added tax (VAT) and domestic consumption tax (TIC), while reducing customs duties to a flat rate of 5% until December 31, 2025. This decision comes in response to soaring coffee prices in Algeria, which hit record highs last year due to global market fluctuations.

Vietnam, a Major Player in Algeria’s Coffee Imports

Vietnam, alongside Brazil, Colombia, Indonesia, Côte d’Ivoire, Ethiopia, and Uganda, is one of Algeria’s largest coffee suppliers. According to Vietnamese media, Vietnamese companies exported 34,158 tons of green coffee beans to Algeria in 2024, generating $127.4 million in revenue.

The tax reduction is a significant boon for Vietnamese exporters. Hoàng Duc Nhuân, Vietnam’s trade counselor in Algeria, highlighted that the total taxes and fees on imported Robusta green coffee beans have dropped to 10%, down from the previous rate of 63%. This reduction is expected to make Vietnamese coffee more competitive in the Algerian market.

Vietnam Aims to Expand Market Share in Algeria

Nhuân has urged Vietnamese businesses to actively seek partnerships in Algeria by participating in trade promotion programs, fairs, exhibitions, and business forums. As reported by VietnamPlus, the Vietnamese government sees Algeria’s tax cuts as a gateway for its companies to deepen their investment in the Algerian coffee market.

Algeria, a non-coffee-producing nation, is one of the world’s largest coffee consumers. VietnamPlus notes that Algeria is among the top 10 export markets for Vietnamese coffee. According to the Courier of Vietnam, Algeria imports approximately 130,000 tons of coffee beans annually, valued at around $300 million.

A Growing Market with Untapped Potential

With its insatiable demand for coffee, Algeria presents a lucrative opportunity for Vietnamese exporters. The tax reduction not only benefits Algerian consumers by stabilizing prices but also opens the door for Vietnam to strengthen its foothold in this vital market. As Vietnamese businesses explore new avenues for collaboration, the Algerian coffee market is set to become a key focus for Vietnam’s export strategy in the coming years.