Vietnam’s high-yield coffee Robusta bean production This presents opportunities for investments into the sector – in areas that could see Vietnam climb up the global coffee value chain. The government saw potential in coffee as a cash crop for exports as well as domestic use thus introducing state-funded farms while also encouraging families with land to cultivate coffee within the Central Highlands.Īs a result of these accumulated practices, the Vietnamese coffee industry is now facing several challenges – aging coffee trees, small-scale and fragmented production, and effects of climate change. In 1986, after the reunification of Vietnam, the Doi Moi (renewal/new age) reforms to the economy saw increased privatization of land and commodities. The French originally brought the Arabica variety in 1908, the high-yield Robusta variety was introduced and cultivated alongside Arabica. The coffee bean was first brought to Vietnam in 1857 by French colonialists who discovered that the environmental conditions in the country’s central highlands were suitable for the cultivation of many foreign crops. As the country looks to step up its coffee processing industry, total exports are expected to reach US$6 billion by 2030.

However, the majority of exports remain in the form of unprocessed beans and little added valuation.ĭespite the pandemic, Vietnam’s coffee industry saw over US$3 billion worth in coffee export revenue in 2021, which accounted for three percent of the country’s GDP and 10 percent of its agricultural exports. Vietnam is the second-largest exporter of coffee after Brazil, accounting for 8.3 percent of the global coffee share and 16 percent of the market share in the EU. And Ayman Falak Medina Reading Time: 5 minutes

Biggest coffee producer