Vietnam’s coffee exports expect a good start to 2021 after a substandard year due to the adverse impacts of the global Covid pandemic.
Vietnam is the world’s second-largest coffee producers after Brazil, with Robusta coffee accounting for 97% of Vietnam’s total output.
Vietnamese coffee products can be found in more than 80 countries and accounted for 14.2% of the global coffee bean market share.
Last year, Vietnam shipped 1.51 million tonnes of coffee globally, with Germany, America and Italy continuing to be the largest coffee importers of Vietnamese coffee.
The coffee export revenue for Vietnam fell 7.2% to $2.66 billion USD and 8.8% in volume year-on-year.
Consumption and demand in Europe and the US declined due to coffee shops and restaurants being closed or under strict lockdown regulations have affected import volumes.
Coffee prices are expected to surge in 2021 since global coffee stocks have fallen to the lowest level in the past years, according to the Agro Processing and Market Development Authority under the Ministry of Agriculture and Rural Development.
Luong Van Tu, Chairman of the Vietnam Coffee-Cocoa Association said:
The coffee market has gone through four consecutive years of falling prices, and the coffee prices are likely to increase in 2021 due to a decline in global supplies.
However, the coffee sector’s ability to gain its bounce depends largely on the recovery of the tourism sector.
The European Union Vietnam Free Trade Agreement (EVFTA) took effect August last year paving the way for increased trade between the EU and Vietnam by removing tariffs on all green, roasted and processed coffee.
In a bid to effectively carry out the EVFTA, the ministry asked the Vietnamese coffee industry to apply state-of-the-art technologies into coffee cultivation, processing and preservation to meet requirements of EU importers.
They are also encouraged to increase the percentage of specialty coffee plantation, register geographical indications and build brands for their coffee products.
The Ministry of Industry and Trade’s Foreign Trade Agency said Vietnam has envisaged to develop the coffee sector in a uniform and modern manner, aiming to rake in 6 billion USD from coffee exports by 2030.