With current price trends, Vietnam's coffee export objective of $5 billion in 2024 should not be that difficult to achieve, according to Do Ha Nam, chairman of the board of directors at Intimex Group JSC and vice chairman of the Vietnam Coffee Cocoa Association (VICOFA).
Nam was speaking at the second "Honoring Vietnamese Coffee – Tea 2024" festival organized by Nguoi Lao Dong (Laborer) newspaper in Ho Chi Minh City last weekend.
According to Nam, Vietnam's coffee export turnover would increase significantly in the 2022-2023 crop year and early 2024 thanks to record high selling prices, which have recently reached VND100,000 ($4.02) per kilogram, more than double from the previous year.
Nam said that the market for Vietnamese coffee beans is now enormous. Vietnamese coffee plays an indispensable role in the world, but the country requires long-term growth solutions and strategies.
According to Pham Chanh Truc, former vice head of the Party Central Committee's Economic Commission, coffee is a valued commodity that is exported worldwide. "In order for firms to export items worth $5 billion this year, Vietnamese businesses must first prepare for an increase in export turnover with an organic manufacturing orientation in terms of quality," he said.
"The coffee sector will thrive on sustainable production in the future. The EU will take into account guidelines for deforestation to support agriculture. Vietnamese businesses must therefore produce processed goods, in addition to exporting raw materials. Additionally, Vietnamese companies need to take advantage of the free trade agreements the country has signed with a large number of nations," Truc added.
Nguyen Quang Binh, a coffee expert, believes that 2024 will be a year of price breakthroughs, although coffee prices are unlikely to rise further to $5,000-7,000 per ton in the near future.
"As a result, Vietnamese firms may find that coffee prices will eventually revert to a certain level because they cannot remain high indefinitely, necessitating a long-term solution for sustainable development," Binh noted.