Vietnam ranked 2nd coffee exporter in the world
08 January 2022, Vietnam: Coffee is one of six export items of over 3 billion USD/year, alongside high-value products such as wood and wood products, seafood, cashew nuts, rice, vegetables, rubber, etc. with export value belong to the top of the agricultural and rural development sector. In 2021, despite the complicated development of the COVID-19 pandemic, Vietnam’s coffee exports still brought in over 3 billion USD, contributing to the overall growth of Vietnam’s commodity exports.
According to Mr. Nguyen Nam Hai – Standing Vice Chairman of Vietnam Coffee and Cocoa Association (Vicofa), Vietnam ranked 2nd coffee exporter in the world, accounting for 8.3% of the global coffee export market share. Vietnam’s main coffee export markets include Europe (EU), US, Russia, Japan and UK. In the EU market, Vietnam is the second largest coffee supplier after Brazil (22.2%), accounting for 16.1% market share in volume. In particular, in 2021, the rapid increase in world coffee prices has supported Vietnamese businesses to earn a very positive export turnover, although the volume of exported coffee has decreased.
Statistics show that, despite ranking 2nd in export on the world market, it is worth mentioning that Vietnamese coffee is at a disadvantage because it is less focused on deep processing, mainly exporting raw coffee with low added value. According to Vicofa, the average price for a ton of processed coffee is nearly 3,600 USD/ton, while the price of green coffee on the floor is only about 2,400 USD/ton.
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Vietnamese enterprises have realized this and are promoting post-processing, instead of the costly and risky export of green coffee due to the retraction calculation. Currently, roasted and ground coffee exports have accounted for 9.1% of the market share, creating many opportunities and prospects for the coffee industry as Vietnam increasingly penetrates deeper into the international market through the free trade agreements such as CPTPP, EVFTA. In which, the EU is the largest coffee consuming market, accounting for 40% of total volume and 38% of total export turnover; followed by Southeast Asia with 13%. In particular, in the Chinese market, Vietnamese coffee has accounted for more than 30% of the total coffee imports of the most populous market.
