Vietnamese businesses stand to gain as Algeria reduces import taxes on coffee

Vietnamese businesses stand to gain as Algeria reduces import taxes on coffee

Algeria’s recent reduction of import duties on coffee offers a great opportunity for Vietnamese coffee to expand its presence in the North African market.

Workers harvest coffee. — VNA/VNS Photo Hoài Thu

Currently, the total import taxes and fees on green Robusta coffee have been reduced to just 10 per cent, down from the previous 63 per cent.

Algeria's Finance Law for 2025 includes reducing or exempting import duties on coffee to lower coffee prices for domestic consumers. Specifically, the import tax has been cut from 30 per cent to 5 per cent, while the value-added tax (VAT) of 19 per cent and the domestic consumption tax of 10 per cent have been removed.

This consumption stimulus measure will be in effect until the end of 2025, offering a great opportunity for Vietnamese coffee to expand its presence in the North African market.

As Algeria does not yet cultivate coffee, it relies entirely on imports to meet domestic demand. With a population of over 46 million, the country imports about 130,000 tonnes of coffee beans annually, valued at around US$300 million.

The main coffee-exporting countries supplying Algeria include Việt Nam, Brazil, Colombia, Indonesia, Côte d’Ivoire, Ethiopia and Uganda.

According to Việt Nam Customs, in 2024, Vietnamese enterprises exported 34,158 tonnes of green coffee to Algeria, generating a revenue of $127.4 million.

There is still ample room for Việt Nam’s coffee exports to grow in Algeria, as importers and consumers highly appreciate its quality and flavour. Experts note that Vietnamese coffee possesses a distinct aroma, produces a thick foam and absorbs sugar more effectively than coffee from other countries. 

Bizhub