Coffee Vietnamese Exports: From Robusta Beans to the Global Market

Vietnam proudly stands as one of the world’s leading coffee exporters, especially of Robusta coffee. With a long history of development, ideal climate and soil conditions, and continuous efforts in cultivation and processing, Vietnamese coffee beans have reached over 80 countries and territories, solidifying their position on the global coffee map.

I. Main Export Coffee Types from Vietnam

Vietnam primarily exports two main types of coffee:

Robusta Coffee (Coffea canephora): This type accounts for the largest proportion, about 90-95% of Vietnam’s total coffee output. Vietnamese Robusta is renowned for its bold flavor, characteristic bitterness, and high caffeine content. The Central Highlands provinces like Dak Lak, Lam Dong, Gia Lai, and Kon Tum are key Robusta growing regions, ensuring a plentiful supply for export.
Arabica Coffee (Coffea arabica): This type accounts for a smaller share but is increasingly gaining attention. Vietnamese Arabica, especially from areas like Cau Dat (Lam Dong), Son La, and Dien Bien, offers an enticing aroma, light acidity, and less bitterness than Robusta. This type is often exported for the specialty coffee segment or for blending.

II. Export Markets and Vietnam’s Position in Coffee

Vietnamese coffee has reached many large and demanding markets worldwide:

Major Markets:
- Europe (EU): Germany, Belgium, Italy, and Spain are Vietnam’s largest Robusta importers. The EU is a huge coffee consumer with diverse demands.
- United States: Always one of the important markets, with stable demand for both Robusta and Arabica.
- Japan, South Korea: These Asian markets are increasingly favoring Vietnamese coffee, especially for instant and blended coffee products.
- China: A large potential market with rapidly growing coffee consumption.
- Emerging Markets: Increasing coffee demand in Southeast Asian and Middle Eastern countries.
Global Position:
- Vietnam is currently the world’s second-largest coffee exporter, trailing only Brazil.
- It is the world’s number one Robusta exporter, playing a crucial role in shaping Robusta prices on the international market.

III. Advantages and Challenges in Coffee Export

1. Advantages:

Large and Stable Output: Vietnam has vast coffee growing areas and high yields, ensuring an abundant supply.
Competitive Pricing: Production costs for coffee in Vietnam are relatively low, giving the product a competitive edge on price.
Recognized Quality: Vietnamese Robusta coffee is highly valued for its strong flavor, suitable for traditional Vietnamese filter coffee and instant coffee.
Support Policies: The government has many policies encouraging the development of the coffee industry, supporting farmers and businesses.
Free Trade Agreements (FTAs): Vietnam has numerous FTAs with major markets, helping reduce tariffs and enhance competitive advantages.

2. Challenges:

Reliance on Robusta Prices: Vietnam primarily exports Robusta, a coffee type with lower value than Arabica and susceptible to price fluctuations.
Limited Deep Processing: The proportion of roasted and ground coffee, instant coffee (value-added products) remains low compared to raw green bean exports.
Climate Change: Unpredictable droughts and floods affect coffee yield and quality.
Sustainability and Traceability Requirements: Importing markets are increasingly stringent regarding sustainability standards (UTZ, Rainforest Alliance, 4C), traceability, and deforestation-free practices.
Intense Competition: Facing competition from other coffee-producing countries.
Brand Value Not Yet High: The brand image of Vietnamese coffee on the international market is not yet truly prominent compared to other major brands.

IV. Sustainable Development Orientation for Coffee Exports

To maintain its position and enhance the value of Vietnamese coffee in the international market, the following orientations are crucial:

Restructuring Production: Increase the area and improve the quality of Arabica coffee and specialty coffee.
Promote Deep Processing: Encourage investment in roasting, grinding, instant coffee production, ready-to-drink coffee, and other value-added products.
Enhance Quality and Certifications: Widely apply sustainable coffee production processes (GAP) and achieve international certifications for quality, safety, and environmental protection.
Build and Promote Brands: Invest heavily in marketing, building a high-end and unique Vietnamese coffee brand in the international market.
Foster Value Chain Linkages: Strengthen cooperation among farmers, cooperatives, processing enterprises, and exporters.
Diversify Markets: Seek and expand into new potential markets, reducing dependence on a few traditional markets.
Adapt to Climate Change: Research and apply smart farming solutions that are drought-resistant and pest-resistant.