Vietnamese Coffee – Potential for Record-Breaking Exports

1. Introduction to Vietnamese Coffee

Coffee is one of Vietnam’s key agricultural exports, playing a significant role in the nation’s economy and cultural life. The coffee industry in Vietnam began to develop in the early 20th century when the French introduced coffee plants to the Central Highlands. However, it wasn’t until the 1990s that the coffee sector truly exploded and became one of Vietnam’s leading export commodities. 

Today, Vietnam is the second-largest coffee exporter globally, only behind Brazil. With large coffee-growing areas and ideal climatic conditions, Vietnamese coffee is not only consumed domestically but also exported to over 80 countries worldwide. 

Particularly, Vietnam’s Robusta coffee is renowned for its strong flavor and distinct taste, making it increasingly popular, especially in European and Asian markets.

Coffee plant farm woman Hands harvest raw coffee beans. Ripe Red berries plant fresh seed coffee tree growth in green eco farm. Close up hands harvest red seed in basket robusta arabica plant farm.

Organic coffee production models, minimizing the impact of climate change, and improving product quality

2. Vietnamese Coffee: A Major Contributor to the Economy

Vietnamese coffee is well-known not only for its outstanding quality but also for its significant contribution to the national economy. According to the Ministry of Agriculture and Rural Development, in 2024, Vietnam exported nearly 902,000 tons of coffee, earning USD 3.2 billion, a 34.5% increase compared to the previous year. 

The coffee industry plays a vital role in the country’s GDP and provides employment to millions, particularly in the Central Highlands provinces. Although coffee export volumes may fluctuate due to weather conditions and diseases, the steadily improving quality ensures the continued growth of Vietnam’s coffee export value. 

Currently, Vietnam mainly exports Robusta coffee, which accounts for over 90% of total coffee exports, while Arabica coffee, though still small, is showing an increasing output due to investments in cultivation techniques and product quality improvements.

3. Growth of the Vietnamese Coffee Industry

Export value is expected to continue to increase due to the strong global demand for high-quality coffee.

The Vietnamese coffee industry has made remarkable progress in enhancing product quality and expanding export markets. While production may decline due to climate change, export value has surged due to improved quality and higher coffee prices. 

In the first half of 2024, the export price of Vietnamese coffee reached a record USD 3,550 per ton, an increase of 48% compared to the same period last year. This growth reflects the higher product quality and results from production and processing improvements. 

Additionally, Vietnam is actively transitioning to sustainable coffee production models to meet the increasing global demand for clean and organic coffee. Large coffee companies are also adopting new technologies in processing and preserving coffee, adding value to Vietnamese coffee.

4. Vietnamese Coffee Export Markets

Vietnamese coffee is now exported to over 80 countries, with large markets such as Germany, Italy, Japan, the U.S., and China accounting for a significant share of the export turnover. Despite these markets being stable for years, the demand for Vietnamese coffee continues to grow. 

  • Germany is the largest market for Vietnamese coffee, with a turnover of USD 383 million in the first half of 2024, an increase of 37% compared to the previous year. Germany is home to the world’s largest coffee business networks, such as Neumann Group, one of the largest coffee processing and trading companies, which shows strong interest in Vietnamese Robusta coffee.  
  • Italy, often regarded as the coffee capital of the world with famous coffee types like Espresso and Cappuccino, remains an important market for Vietnamese coffee. With renowned coffee brands like Lavazza, Vietnamese coffee is increasingly winning the trust of Italian consumers.  
  • Japan, a discerning market, has shown a preference for Vietnamese coffee due to its consistent quality and distinct Robusta flavor. The demand for Vietnamese coffee in Japan is expected to continue growing in the coming years.

In addition, other countries such as Spain, Russia, the US, and China are also markets for Vietnamese coffee with significant export turnover. 

5. Vietnamese Coffee – Potential to Expand in the International Market 

The development opportunities for the Vietnamese coffee industry in the future are huge. Although output may decrease in the coming years, export value is forecast to continue to increase due to the strong increase in demand for high-quality coffee globally. The application of new technologies in processing and production, such as modern coffee roasting and preservation technology, will help increase product value and expand export markets. 

Applying new technology in processing and production, such as modern coffee roasting and preservation technology, will help increase product value and expand export markets.

Moreover, the conversion to organic and sustainable coffee production models will also help improve quality and meet the increasing demand from demanding markets such as the EU and North America. Vietnamese coffee, with its superior quality and great economic value, will continue to play an important role in the national agricultural sector. 

The Vietnamese coffee industry is not only the pride of the people but also an export industry with the potential to expand further in the international market. To maintain and develop sustainably, the coffee industry needs to improve quality, apply new technology and maximize opportunities from the export market.

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