Increase processing to increase the value of Vietnamese coffee beans

VCN- Under the commitments of the free trade agreements that Vietnam has signed, all member markets are open to Vietnam's roasted and deep-processed coffee to enjoy preferential tariffs upon import. This has encouragedbusinesses to invest in many projects forroasted and ground coffee processing and instant coffee.
Vietnamese coffee brand among nine winners of ASEAN-RoK design award Vietnamese coffee brand among nine winners of ASEAN-RoK design award
Coffee sector aims to promote domestic consumption Coffee sector aims to promote domestic consumption
4506-4126-9-unnamed
Currently, the proportion of roasted and ground coffee exports in Vietnam has increased to 12% of total coffee export turnover. Photo: Internet.

Invest more in processing

Luong Van Tu, Chairman of Vietnam Cocoa Coffee Association (Viacofa), said Vietnam's coffee industry has had many changes over the years. In addition to green coffee beans, Vietnam has stepped up processing and export of roasted and instant coffee. The proportion of roasted and ground coffee exports in Vietnam has increased to 12% of total coffee export turnover. This is aresult of moves to increase productivity, quality and added value, which is being promoted by Vicofa in recent years. This is considered a strategic solution for the sustainable development of the coffee industry in both domestic and export markets.

Tu said that in the crop year 2020-2021, Vietnam's coffee output is forecast to falllby about 15% due to the impact of floods and storms andlow coffee prices for many years, making farmers not interested in caring. Despite the decline, Vietnam's coffee output remains high, helping provide an abundant supply of raw materials for processing activities. In addition, of the 14 FTAs Vietnam has signed, all markets are open to Vietnam's processed coffee with preferential tariffs of 0-5%. This is a huge advantage for firmswhen investing in coffee processing in Vietnam.

With these advantages, over the past time, a series of investment projects in instant coffee production have been put into operation such as Intimex Group's Instant Coffee Processing Plant built onadvanced technological lines of world with investment value ofUS$30 million, capacity of 550kg perhour, estimated at 4,000 tonnes / year. Recently, Nestlé Vietnam also put into operation the Nescafe Dolce Gusto tablet production line with a capacity of 2,500 tonnes of coffee / year; Tin Nghia Coffee Joint Stock Company inaugurated phase 1 instant coffee factory of 3,200 tonnes of finished coffee in Nhon Trach 3 Industrial Park. Vinh Hiep Company also linked up with 10,000 households to build raw material areas with 10,000 hectares of coffee, with production of about 30,000 tonnes, including 45 hectares of high quality coffee according to the standards of the US Department of Agriculture. Vinh Hiep has also invested in high quality German coffee production lines to produce the product line branded L’amant coffee to promote exports of processed coffee.

Higher value

According to the Department of Trade Promotion of theMinistry of Industry and Trade, Vietnam has exported coffee to more than 80 markets around the world with total annual export output of about 11.6 - 11.8 million tonnes, turnover is about US$2.6 - 2.8 billion. However, Vietnam's coffee export value is still low because green coffee accounts for a large proportion.

The coffee industry is striving to reach an export turnover of US$6 billion by 2030 according to the Government's target,ofwhich, exports of roasted and instant coffee increased by 30%. This goal is set in the context of roasted and instant coffee favoured by countries around the world. In particular, during the Covid-19 pandemic, when the global economy was heavily impacted, the demand for coffee still increases.

This is evidenced by the coffee export results in 2020 of Nestlé Vietnam Company. According to William Mackereth, Supply Chain Director of Nestlé Vietnam, Nestlé Vietnam's exports in 2020 will grow by 20% and all of the firm’sproducts are deeply processed coffee products.

Investment in quality and processing also helps many Vietnamese enterprises to export coffee at very high prices. Typically, Arabica coffee roasted by Phuc Sinh Company is being sold to foreign customers forUS$28 / kg (equivalent to more thanVND 600,000/kg.) According to Phan Minh Thong, General Director of Phuc Company Sinh, over the past time, the company has strongly invested in processing and creating value-added products aimed at the high-end market Currently 70-80% of Phuc Sinh's coffee exports are deeply processed, instead of regular green coffee.

Luong Van Tu said, from now to the end of the year, the coffee industry will try to export equal to last year with 1.6 million tons of coffee, reaching an export turnover of US$2.8 billion. If there is a decrease, only a small decrease, the export volume of roasted and instant coffee must increase in export volume.

By Khai Ky/Bui Diep

Related News

Unlock capital flows and create favorable conditions for investors

Unlock capital flows and create favorable conditions for investors

VCN - Talking with the press, Dr. Ngo Cong Thanh (Photo), Provisional Executive Committee member of the Vietnam Industrial Park Finance Association (VIPFA), said that it is necessary to open up capital flows and create conditions for investors to access key factors. Facilitate production and business factors and innovate investment promotion activities to more effectively develop industrial parks.
Agricultural exports aim for a new record in 2024

Agricultural exports aim for a new record in 2024

VCN - Although it has only been the first 2 months of 2024, the prices of agricultural products on the world market have increased simultaneously. Vietnam's total agricultural export turnover also recorded growth in most products. These are all positive signals from the market, signaling a new record year for Vietnam's agricultural exports.
Businesses hunts for effective implementation of Resolution 02

Businesses hunts for effective implementation of Resolution 02

VCN - According to Dr. Nguyen Minh Thao, Head of the Business Environment and Competitiveness Research Department (CIEM), businesses long to administrative reform and business environment improvement, which also are the least expensive support package amid the shortage of support resources.
Businesses expect reforms to be effective, substantive and put into practice

Businesses expect reforms to be effective, substantive and put into practice

VCN - The restoration of the Reform Program to improve the business environment by issuing Resolution No. 02 dated January 5, 2024 to create pressure and arouse the motivation and spirit of reform for ministries, branches and localities.

Latest News

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

VCN - In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year. Ms. Nguyen Thi Thu Sac, Chairwoman of the Vietnam Association of Seafood Exporters and Producers (VASEP) shared with Customs Magazine.

More News

Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Singapore is the largest foreign investor in VN in Q1

Singapore is the largest foreign investor in VN in Q1

The disbursed FDI rose by 7.1 per cent in the first quarter to reach $4.63 billion, a signal that the disbursement will continue the positive trend, the agency said.
Thai Binh boosts investment, trade cooperation with Germany

Thai Binh boosts investment, trade cooperation with Germany

A delegation from the northern province of Thai Binh, led by Deputy Secretary of the provincial Party Committee Nguyen Khac Than, visited several localities and business organisations in Germany from March 25 to 27, in a bid to enhance trade cooperation with and attract direct investment from the European nation.
Lifting obstacles to develop industrial parks

Lifting obstacles to develop industrial parks

VCN - Attracting investment and developing industrial zones (IZs) and economic zones (EZs) is one of the important contents to implement the policy of developing a multi-component, open, attract investment and resources from all economic sectors to develop the country. In addition to the results achieved, there still limitations that need to be removed to draw investments to develop industrial parks and economic zones, including financial problems for industrial parks.
More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 domestic and foreign businesses and manufacturers will attend the Vietnam Global Manufacturing Forum 2024 (VGMF2024) to explore investment and business cooperation opportunities.
Connecting with FDI firms helps boost wood exports: insiders

Connecting with FDI firms helps boost wood exports: insiders

Strengthening linkages and cooperation between foreign-invested and domestic enterprises will contribute to promoting the sustainable development of the Vietnamese wood industry, according to insiders.
Doosan Vina exports nearly 2,000 tonnes of modules to US

Doosan Vina exports nearly 2,000 tonnes of modules to US

The Doosan Enerbility Vietnam (Doosan Vina) specialising in heavy industries announced on March 26 that it has just exported a batch of nine modules weighing nearly 2,000 tonnes to the Golden Triangle Polymers company in Texas, the US.
Wood processing enterprises strive to increase the proportion of individually designed goods

Wood processing enterprises strive to increase the proportion of individually designed goods

VCN - Many wood and furniture processing enterprises are promoting investment in design activities, helping to increase the proportion of individually designed products (ODM) in exports, thereby affirming the industry's capacity Vietnamese wood in segments with higher added value.
Take advantage of shrimp export opportunities right from early year months

Take advantage of shrimp export opportunities right from early year months

VCN - As the main export product of Vietnamese seafood, shrimp processing enterprises are taking advantage of export acceleration since the beginning of the year.
Read More

Your care

Latest Most read
ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year.
Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Mobile Version