During the Vietnam–Algeria–Senegal–Tunisia Export–Import Consultation Session held on March 26, Mr. Hoang Duc Nhuan, Vietnam’s Commercial Counselor in Algeria, highlighted that Vietnam continues to enjoy a strong trade surplus with Algeria, presenting promising opportunities for expanding exports.
1. Export Overview: Vietnam’s Trade Surplus with Algeria
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In 2023, Vietnam’s exports to Algeria reached USD 237 million, while imports were less than USD 4 million. However, in 2024, export turnover decreased to USD 192 million, mainly due to surging coffee prices — a commodity that accounts for 70–80% of Vietnam’s total exports to Algeria — prompting importers to shift purchases to African suppliers.
In the first two months of 2025, Vietnam exported 14,718 tons of coffee to Algeria, up 65% year-on-year.
To address rising domestic prices, the Algerian Government has significantly reduced import tariffs on coffee from 63% to 10% starting in 2025. This tax cut has stimulated strong import demand for Vietnamese coffee.
2. Key Export Commodities with High Potential
Coffee: Core Export Product
Vietnamese coffee currently accounts for 50% of total exports to Algeria. The country imports 100% of its domestic coffee consumption — about 130,000 tons annually, worth USD 300 million.
While Algeria mainly imports raw coffee, it encourages foreign investment in local processing and packaging — an area where Vietnamese enterprises could gain a competitive advantage.
Tea, Spices, and Agricultural Products
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Green tea: Algeria imports about USD 50 million annually, primarily from China, with total import taxes and fees around 54%.
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Spices: Imports reach USD 30 million per year, mostly black pepper. In 2024, Vietnam exported 633 tons of pepper worth USD 2.95 million, competing with suppliers from India, Pakistan, and Brazil.
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Other strong-performing commodities include cinnamon, anise, cashew nuts, desiccated coconut, powdered milk, and seafood, all of which offer room for market expansion.
Powdered Milk: Large Market, Low Tariffs
Algeria imports about 400,000 tons of powdered milk annually, worth USD 600 million, due to insufficient domestic production.
Powdered milk is classified as a consumer essential, subject to only 10% in taxes and fees, compared with 105% for finished dairy products, making it a particularly attractive export item.
3. Industrial Products and Manufactured Goods
Footwear
Algeria consumes about 90 million pairs of shoes annually but produces only 1 million pairs, importing the rest — worth over USD 1 billion per year.
Vietnamese footwear is highly appreciated by Algerian consumers, and local companies are seeking import partnerships for soles and semi-finished shoe components for domestic assembly.
Textiles and Garments
Each year, Algeria imports USD 400 million worth of garments and USD 800 million worth of textile materials. In 2023, Vietnam exported approximately USD 300 million in clothing, fabric, and yarn to this market, subject to total taxes and fees of 54%.
Metals and Industrial Materials
Algeria’s annual import demand for aluminum and steel is around USD 2 billion.
Vietnam’s 2023 exports to Algeria included USD 2.7 million in raw aluminum and USD 2 million in steel bars. However, as Algeria begins to develop its own steel industry, import restrictions and high tariffs on finished metals have been imposed.
Other Potential Sectors
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Chemicals and packaging materials
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Auto parts and machinery components
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Raw materials for local manufacturing
Algeria prioritizes importing raw materials and restricts finished goods through high import taxes — while encouraging foreign joint ventures and local production partnerships.
4. Challenges and Market Entry Barriers
Despite the strong potential, several challenges persist for Vietnamese exporters:
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High import tariffs: As Algeria is not a WTO member, the average import tax remains around 54%, with some products facing up to 200% due to domestic excise and safeguard measures.
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Trade protectionism: Algeria’s annual Finance Law adjusts import–export rules frequently to protect local industries.
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Strong competition from China, India, and other FTA-partner countries.
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Language barrier: French is used for trade, while Arabic is the legal language, increasing translation costs.
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High shipping costs: Owing to instability in the Middle East, shipping surcharges to Algeria have risen by USD 350–800 per container, according to Mediterranean Shipping Company (MSC) announcements in April.
5. Preventing Online Fraud and Ensuring Secure Transactions
The Vietnam Trade Office in Algeria warns exporters about online scams, advising caution when dealing with unsolicited inquiries.
“Before entering into contracts, Vietnamese enterprises should verify partners’ business licenses, tax codes, and representative IDs. When necessary, the Trade Office can assist in verifying authenticity,” said Mr. Hoang Duc Nhuan.
Recommended practices for safe transactions:
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Use confirmed irrevocable Letters of Credit (L/C) from reputable European or U.S. banks.
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Request at least 20% advance deposits for new transactions.
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Avoid deferred payment methods.
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When possible, arrange prepayments through buyers’ affiliates in Dubai or Europe.
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Use progressive shipments tied to payment milestones.
In case of disputes, businesses should seek immediate assistance from the Vietnam Trade Office in Algeria to avoid prolonged port delays and costly storage fees.
Conclusion
Algeria presents significant export opportunities for Vietnamese products such as coffee, pepper, milk powder, footwear, and textiles. However, businesses must prepare for tariff barriers, legal complexity, and logistical costs.
With prudent risk management and proactive engagement, Vietnamese enterprises can capitalize on Algeria’s import demand and expand their footprint in North Africa’s growing market.