The lack of quality processed coffee for export and a neglected domestic market are preventing Vietnam from creating a recognisable coffee brand to the world. The problem was raised by Vietnam’s Prime Minister Nguyen Xuan Phuc at a review meeting of the industry and trade sector.
According to the Ministry of Agriculture and Rural Development, Vietnam had 664,600 hectares of coffee last year, 14,100 hectares more than the previous year. The output also increased by 68.9 tonnes to 1.53 million tonnes.
However, in 2017, Vietnam exported 1.42 million tonnes for USD3.21bn, decreased by 20.2% in the volume and 3.8% in value.
Even though Vietnam is one of the top coffee exporters, it still imports lots of coffee, especially processed coffee. About 90% of the output, which is mostly raw coffee, is exported. Minister of Agriculture and Rural Development Nguyen Xuan Cuong said only 10% of the output was processed for the local market.
The Agro Processing and Market Development Authority (AgroTrade) estimated that 80% of the coffee beans is only placed under the sun at the yards of local farmers. Because of low raw coffee quality and lack of processed coffee, Vietnam still can’t make any global brands.
Vietnam has many coffee companies but only a few of them succeeded in making a recognisable brand and have processing factories such as Trung Nguyen and Ngon Coffee.
President of the Vietnam Coffee and Cocoa Association Luong Van Tu said even though Vietnam had 664,600 hectares of coffee, it was scattered which make the application of technology difficult. Tu said
