Vietnam’s coffee industry spots opportunity amid rising global prices
As global coffee prices surge, Vietnam's coffee industry is presented with a significant opportunity to expand its export market share, industry insiders say.
A recent study by the Food and Agriculture Organization noted that coffee prices rose globally by around 40% in 2024, largely due to unfavorable weather conditions caused by climate change.

Farmers are harvesting coffee. Photo courtesy of Vietnam News Agency.
This has reduced production in Brazil, Colombia and Indonesia, while demand in Europe, the U.S. and Asia has soared.
Last month, Vietnam's coffee export turnover reached more than $560 million, bringing the total export value for the first seven months of the year to $3.6 billion and marking an impressive year-on-year growth of 20%, according to data from the Ministry of Agriculture and Environment.
The industry's growth is mostly attributed to the jump in global coffee prices.
Vietnam is the largest exporter of Robusta coffee in the world, accounting for about 40% of global market share. The country is now looking to seize the opportunity to expand its market share.
Nguyen Nam Hai, president of the Vietnam Coffee Cocoa Association (Vicofa), said that the international coffee market has never been as favourable as it is now.
With high prices and growing demand, coupled with Vietnam’s stable supply, the country is in an advantageous position, he said.
However, to fully capitalize on this opportunity, Vietnam needs to delve deeper into processing, rather than relying on raw bean exports, he added.
Although exports have increased in value, the product structure of Vietnam’s coffee exports still reveals significant limitations.
The share of deep-processed coffee, including roasted, instant and specialty coffee, currently accounts for only 12-15% of total exports, according to Vicofa.
This figure is modest compared to the products' potential. In Brazil and Colombia, the ratio ranges from 30-40%.
Thoi bao Ngan hang (The Banking Times) quoted founder and CEO of TNI King Coffee Le Hoang Diep Thao as saying that investing in deep processing helps companies multiply the value of their products significantly.
But initial investments can be substantial, especially for instant coffee technology, which she said requires hundreds of billions of Vietnamese dong (VND100 billion = $3.8 million) in capital. Not all businesses are financially capable of such investments.
Other reasons Vietnam’s coffee sector has been slow to transition to deep processing are technological challenges and branding issues, she added.
Technology and branding challenges
The technology for processing instant coffee and specialty coffee in Vietnam is still not uniformly developed.
Large enterprises like Vinacafé, Trung Nguyen and Nestlé have made significant investments, but the number of small and medium-sized enterprises with sufficient capabilities is limited.
Vietnamese coffee brands have not yet been firmly established on the international market. While Vietnam is well known for its production volume, when it comes to global brands, consumers often think of Starbucks (USA), Lavazza (Italy) or Nestlé (Switzerland). This makes it difficult for processed coffee products from Vietnam to compete in the premium segment.
Dinh Van Thanh, an agricultural economics expert, said that if Vietnam continued to depend on raw coffee exports, it would remain only an "ingredient factory" for large corporations.
A long-term strategy for investment in deep processing is needed, along with efforts to elevate the national coffee brand on the global stage, he added.
Despite these challenges, positive signals are emerging from businesses. Trung Nguyen Legend, for example, is expanding its instant coffee exports to the Middle East and Eastern Europe.
Vinacafé is focusing on developing the ASEAN market, while several start-ups in Lam Dong and Gia Lai are boldly building specialty coffee brands for markets like Japan and the Republic of Korea.
Instead of selling raw beans, they are partnering with companies to process roasted coffee and sell it directly to the South Korean market, said Thao. The selling price is double that of raw beans, while farmers also earn better profits.
To capitalize on high coffee prices and expand export potential, experts recommended three key strategies for Vietnam’s coffee industry.
Vietnam should first invest in deep processing technology. The Government should offer preferential credit policies to businesses that invest in production lines for instant and specialty coffee, rather than leaving them to manage on their own.
Experts also suggest that the country focus on building a national coffee brand, similar to Thailand's Jasmine rice or Colombia’s Arabica coffee. A strong, internationally recognised coffee brand is essential for Vietnam.
Finally, Vietnam should prioritize emerging markets like the Middle East, South Asia and Eastern Europe, where coffee demand is growing rapidly. This presents an opportunity for processed Vietnamese coffee to expand its distribution channels.
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