The success of Vietnamese coffee exports can be attributed to a number of factors

posted in: Agiculture Knowledge | 0

Vietnamese coffee export has been growing for more than a century, and it is now the country’s second most important agricultural export after rice.

Vietnamese coffee export price

Coffee export prices in Vietnam are approximately 5% lower than those on the international market. This is a significant competitive advantage when it comes to importing Vietnamese coffee.

Coffee, on the other hand, is a volatile commodity that is routinely traded in large quantities around the world. As a result, transportation costs and local currency exchange rates have a big role in wholesale coffee pricing.

The wholesale price of Vietnamese coffee has increased in the preceding three market years due to internal and external pressures (MY).
The Covid-19 outbreak has been raging in Vietnam for the past two years, and as a result, growers have had to contend with social isolation, which has hampered coffee tree development.

vietnamese-coffee-exports-1

Employees at international seaports who test positive for Covid-19 are forced to take time off or limit their work hours, generating congestion at seaports and an increase in not only international shipping but also yard costs.

Following the vaccination campaign, coffee demand increased once more in Europe and the United States. The price of Vietnamese coffee exports has soared as a result of the supply disruption.

The reduction in coffee export output by the world’s biggest coffee exporter, Brazil, has resulted in a substantial spike in world coffee wholesale prices, which has affected Vietnam as well.

Vietnamese coffee export competitive advantages

Vietnam has grown and exported coffee since the turn of the century. The coffee industry has evolved and increased tremendously during the last century. Due to the great environment and help provided by the Vietnamese government, Vietnamese coffee exports have a major competitive edge over other coffee exporting countries.

  • Stable output

The most important advantage of Vietnamese coffee export is its consistency. Despite being influenced by a wide range of domestic and international factors, Vietnam’s annual coffee output has remained fairly consistent. The favorable climatic conditions for cultivating coffee had a key part in bringing Vietnamese coffee to its apex. Fortunately, Vietnam is one of the few countries on the planet that lies within the coffee belt. Vietnam has a tropical monsoon climate, red basalt soil, and a large supply of water from the Mekong river system. All three of the aforementioned parameters work together to generate ideal growing conditions for coffee.

  • Competitive price

Coffee export prices in Vietnam are frequently lower than those on the international market. This is not to say that Vietnamese coffee is of bad quality; rather, Vietnamese exporters are lowering prices to compete in the competitive coffee market.

  • Tariff preferences

The EU-Vietnam Free Trade Agreement (EVFTA) reduces the import duty on Vietnamese green and roasted coffee from 7-9% to 0%. This is a trait that benefits both exporters and importers of Vietnamese coffee, cutting the price of Vietnamese coffee on the global market.

vietnamese-coffee-exports-2

Top 5 Vietnamese coffee export companies

Trung Nguyen Legend

One of the leading Vietnamese coffee exporters is Trung Nguyen Legend. Trung Nguyen Legend’s goods are currently available in many countries throughout the world and include roasted coffee beans, instant coffee, and other items. Trung Nguyen coffee is marketed to the general public, therefore it may be found at supermarkets, grocery shops, and coffee shop chains.

Contact information

Whatsapp: +84 855555837

K-Agriculture Factory

The Vietnamese government authorized K-Agriculture Factory in 1996, and it became a pioneer in introducing Vietnamese green coffee beans to the world market. This Vietnamese coffee exporter operates on the premise of “Quality is King,” providing high-quality coffee beans that have been carefully picked and processed in accordance with modern international standards. Wholesale enterprises in Germany, the United States, Japan, and other countries are also major markets for K-Agriculture.

vietnamese-coffee-exports-3

Contact information

Email: info@k-agriculture.com

Website: https://k-agriculture.com/

Whatsapp: +84 855555837

WSCAFE

Because WSCAFE is inspired by “wholesale coffee,” it focuses primarily on the wholesale coffee market in order to boost the value of Vietnamese coffee exports in the global coffee export chain.

Contact information

Whatsapp: +84 855555837

Nguyen Coffee Supply

The first Vietnamese specialty coffee firm in the United States is Nguyen Coffee Supply. For four generations, Nguyen Coffee Supply has been exporting Vietnamese coffee.

Contact information

Whatsapp: +84 855555837

Son Duong Coffee Co., Ltd

Son Duong Coffee is a Vietnamese coffee export firm that provides high-quality beans from high-quality growing places such as Buon Ho, the LangBiang plateau, and Tram Hanh – Da Lat.

Contact information

Whatsapp: +84 855555837