Vietnam’s coffee industry is working to increase the value of its raw coffee exports as it seeks to boost the country’s revenue from coffee.
Currently, Vietnam generates more than 1.84 million tonnes of coffee from a total 710,000 hectares of coffee cultivation area. In 2022, Vietnam exported 1.78 million tonnes of coffee worth over US$4.06 billion. Unfortunately, raw coffee accounted for the majority of the export.
A program on coffee recultivation in the Central Highlands during the 2014 – 2020 period has proven effective as hundreds of thousands of hectares of coffee has been regrown to boost both productivity and quality and subsequently farmers’ income.
Aside from new more effective cultivation, there is a growing investment in intensive processing, market expansion and brand protection to increase the value of Vietnamese coffee.
The coffee sector is also striving to apply international standards and align its national standards accordingly.
Meanwhile, both foreign businesses and domestic firms like Vinacafe, An Thai, G7, and Vinh Hiep have also equipped themselves with modern processing technology to produce high-quality products serving domestic consumption and exports.
Vietnam Coffee – Cocoa Association (VICOFA) highlighted that Vietnam is a leading supplier of raw coffee and has exported the commodity to more than 80 countries and territories. Its biggest markets include Germany, Italy, the US, Belgium, Spain, Japan, the Philippines, Russia, China and the UK.
There is still much room for export growth in terms of value. To boost the ‘added-value’, it is also important to take advantage of the free trade agreements with importing countries, step up the advertising of high-quality Vietnamese coffee brand, and organize more trade promotion programs, while providing businesses with further market insights, the Association advised.
In a related development, a separate report highlighted that Vietnam’s production of robusta coffee is expected to shrink in 2023 as farmers focused more on growing durians and other fruits which generate them higher income.