Vietnam coffee export strives to gain turnover of US$6 billion by 2030
Vietnam coffee export strives to gain turnover of US$6 billion by 2030
The coffee industry needs developing products associated with building the brand, enhancing the connection between production and commercialization, towards sustainable development.
Vietnam’s coffee exports strive to earn US$6 billion from coffee export by 2030 and the industry needs develop products associated with building the brand, enhancing the connection between production and commercialization, towards sustainable development, according to Mr. Do Thang Hai, Deputy Minister of Industry and Trade.
Vietnam coffee export strives to gain turnover of US$6 billion by 2030. Photo: TTXVN
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Speaking at the celebration of the 4th Vietnamese Coffee Day and the 30th anniversary of Vietnam’s incorporation into the International Coffee Organization (ICO) on January 15 in Ho Chi Minh City, Mr. Hai said that coffee has been one of the country’s key export categories in recent years. The Ministry of Industry and Trade in collaboration with localities have held trade promotion activities with the expectation to help global consumers enjoy Vietnam's high-quality processed coffee.
Looking back 2020 and ahead of 2021
Vietnam exports an annual volume of 1.5-1.8 million tons, worth an estimated US$3 billion. Three largest buyers of Vietnam’s coffee are Germany, the US and Italy, making of 12.8%, 9.3% and 8.4%, respectively, of Vietnam coffee exports in the first 11 months of 2020.
In only 2020, total coffee volume and revenue was estimated at 1.5 million tons and US$2.66 billion, respectively, according to the Agro-Processing and Market Development Authority under the Ministry of Agriculture and Rural Development (MARD).
Source: MARD. Chart: Nhat Minh
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The average export coffee price for the whole year 2020 was estimated at US$1,759 per ton, an increase of 1.8% compared to 2019, according to the authority. Domestic coffee prices decreased in the first six months and then increased slightly in the last half of 2020.
The pandemic has affected global trade supply chains, including coffee, disrupting transportation and demand after countries enacted national blockades, according to the US Department of Agriculture (USDA).
Covid-19 has also spurred changes in global coffee consumption patterns, most notably a temporary shift from non-household consumption to home consumption. The higher robusta demand and its improved prices is forecast to help Vietnam’s exports increase this year when the country promotes the processing and export of roasted and instant coffee (accounting for 12%).
Coffee reserves in the world ports had fallen to the lowest level in many years, which is a positive signal for Vietnam’s coffee export to improve in 2021, according to the Agro Processing and Market Development Authority.
Mr. Luong Van Tu, Chairman of the Vietnam Coffee and Cocoa Association, said that coffee prices are expected to recover in 2021 thanks to the decline in global output. However, whether coffee prices recover or not, it will depend much on the level of tourism industry's recovery after the pandemic. “This is a huge coffee consumption industry, so as long as the tourism recovers, the coffee market will also revive,” he said.
