Coffee is a highlight of Vietnam’s agricultural exports in the first half of 2023. Owing to surging coffee prices due to reduced output amidst severe weather conditions globally, Vietnam expects the export revenue of coffee to exceed USD 4 billion for the second time, after the first in 2022.
According to the General Statistics Office, Vietnam exported 1.01 million tons of coffee worth USD 2.4 billion in the first half of 2023, which decreased by 2.2% in volume but increased by 3% in value compared to the same period in 2022. In 2023, the new milestone of USD 4.5 billion will be feasible if export turnover remains around USD 360 million per month for the second half of the year, spotting an annual growth rate of 10.9%.
Besides export, the Vietnamese coffee sector is expected to strengthen its presence in new overseas markets. In 2022, over 250 coffee processing facilities were developed in Dak Lak province, one of the coffee capitals in Vietnam, to serve the domestic and other 38 international markets. Meanwhile, several firms are now switching their attention to quality rather than quantity to cater to stringent import requirements.
In addition, the Vietnamese government is concentrating on advancing regenerative agriculture through the cultivation of coffee. In June 2023, the Ministry of Agriculture and Rural Development (MARD) and Nestlé Vietnam jointly launched a project on sustainable coffee production using the agro-forestry model, targeting to plant more than 2.3 million trees by 2027. In the long run, the project is anticipated to increase farmers’ income and improve the conditions in coffee fields, particularly by enhancing insect resistance and coping with climate change.
(Sources: VietnamPlus, Vietnamnet)