Vietnam’s coffee exports hit $4.2 bln in first 5 months

Vietnam exported over 736,000 tons of coffee in the year to mid-May, earning $4.2 billion, according to Vietnam Customs.

While export volume declined by 5.5% year-on-year, export value surged by 56% thanks to a sharp rise in average prices.

Domestically, coffee prices in the Central Highlands reversed course on Saturday, falling by VND2,500-3,300 ($0.13) per kilogram.

Prices stood at VND122,500 ($4.73) per kg in the provinces of Dak Nong, Dak Lak, and Gia Lai, and VND122,000 per kg in Lam Dong province.

Agricultural experts forecast that domestic prices may continue to drop to around VND120,000 ($4.63) per kg due to the downward trend in global markets.

Key drivers behind recent price hikes, such as weather concerns and trade tensions, are showing signs of easing.

In addition, increased investment in cultivation and replanting over the past two years is expected to boost supply in the near future.

Raising the deep processing rate of coffee to 40-45% is essential to ensure sustainable benefits for Vietnamese growers, according to Nguyen Tien Dung, deputy general director of Simexco Dak Lak Ltd, one of the country's leading coffee exporters.

In 2024, Vietnamese enterprises exported nearly 1.35 million tons of coffee, generating a record-breaking $5.62 billion in revenue.

The average export price of coffee reached an all-time high of $4,178 per ton, with prices soaring to $5,855 per ton in November 2024. Meanwhile, domestic raw coffee prices peaked at VND131,000 ($5.2) per kilogram, yielding a net profit of over VND 90,000 per kg for farmers, after deducting costs.

For 2025, the Ministry of Agriculture and Rural Development has set a coffee production target of 1.98 million tons, slightly higher than the previous year.

The U.S. Department of Agriculture forecasts that global coffee consumption for the 2024-2025 season will rise by 5.1 million bags to 168.1 million bags. Meanwhile, Vietnam’s coffee exports are projected to increase by 1.8 million bags, reaching 24.4 million bags, supported by improved supply conditions.