vietnam coffee 2007

Upload: luu123456789

Post on 06-Apr-2018

220 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/3/2019 Vietnam CoffEe 2007

    1/24

    VIETNAM TRADE PROMOTION AGENCY

    EXPORT PROMOTION CENTRE

    ======

    REPORTON COFFEE SECTOR IN VIETNAM

    (Bo co ngnh hng C ph Vit Nam)

    n v t vn:Trung tm o to- Nghin cu Khoa hc

    T chc v Qun la ch: 126/68 Phan K Bnh - Ba nh- H Niin thoi: 04-7624464; 04-7624911

    n v thc hin:Cng ty C phn Truyn thng Quc t IQa ch: 88 Hng Trng, Qun Hon Kim, H Niin thoi: 04-8288406

    - Hanoi, 2007 -

  • 8/3/2019 Vietnam CoffEe 2007

    2/24

  • 8/3/2019 Vietnam CoffEe 2007

    3/24

    3

    I. Overview

    1. Introduction on the product group mentioned in the report

    This report mentions mainly coffee species for export of Vietnam, coffee

    Arabica, Robusta and Chari.

    2. Overview information of coffee industry

    Vietnam locates in the tropical belt of Northern Hemisphere, where the

    climate is suitable for developing coffee trees, and brings Vietnamesecoffee a very special flavour. Especially in the south, near the equator, hot

    and wet tropical climate is suitable for Robusta coffee tree, gathering inTay Nguyen area of which Dac Lac accounts for over 50% of national

    output. The north with cold winter is suitable for coffee Arabica.

    Coffee C.Canephora Robusta of Vietnam, which is famous on the world, isa product originating from Robusta species having been selected for

    decades. Since they are produced concentratedly in good soil with suitable

    climate high intensive cultivation, especially most of them are planted ataltitude of 400 m and over, big amplitude of temperature between day andnight, so they not only have high productivity but also good taste fancied

    by many countries on the world.

    Vietnamese coffee has been developing fast. The whole nation had 13.000ha of coffee with the output of over 6.000 tons in 1975, and now

    approximatedly 500.000 ha with the output of over 700.000 tons.

    Among Vietnamese agricultural product commodities, coffee plays a quite

    important role, every year coffee brings export turn-over of over 500 millionUS dollars, ranking the second after rice.

  • 8/3/2019 Vietnam CoffEe 2007

    4/24

    4

    II. Production situation

    1. Production location

    The area of coffee planting nationwide is 489.000 ha, mostly concentrates

    in Tay Nguyen areas.

    The biggest area for coffee raw materials of Vietnam is still Dac Lacprovince. The whole province has about 311.000 ha basalt soil, which ismost suitable for coffee tree to develop, among them planting area is

    170.000 ha. This area maily plants coffee Robusta. In the last crop, DacLac harvested 432.025 tons, and the expectation of 2007 2008 is400.000 tons reaching the new quality standard. Dac Nong ranks the

    second, and Lam Dong third.

    The matter is for Tay Nguyen provinces, and Dac Lac in particular, how toimprove coffee value by cutting Robusta planting area, increasing Arabica

    one, attaching importance to intensive cultivation, investing processingindustry, diversifying ground coffee products.

    Main coffee planting areas in Vietnam

    Province Area (ha) Output (tons)

    Lm ng 117.918 200.000

    Gia Lai 79.126 100.000

    ng Nai 28.875 25.000

    Kon Tum 12.984 15.000

    Bnh Phc 13.693 15.000kLk 237.262 360.000

    (Source: Vietnam Coffee and Cocao Asociation)

    Companies running in the field of producing and processing coffee also

    concentrate mainly in those areas.

  • 8/3/2019 Vietnam CoffEe 2007

    5/24

    5

    2. Characteristics, classification, and product structure

    Vietnamese coffee has main types: Arabica, Robusta, Chari. TCVN

    4193:2001 defines ranking coffee according to method of couting faults in akernel coffee sample. More specific classification can be seen from thetable about allowed ratio of mixing other kinds of coffee, as following:

    Coffee

    type

    Class Especial and

    Class 1Class 2 Class 3 and 4

    Arabica No mixxing R and C

    c ln

    R=

  • 8/3/2019 Vietnam CoffEe 2007

    6/24

    6

    reaches 800.000 tons. Those figures go far across all thoughts, strategicgoals of the industry. Area of coffee in Vietnam started to raise fast in the

    final half of 1980s in 20th century. Until 1992, world price of coffee droppedat the lowest level since coffee production countries in the world threw their

    inventory coffee to the market because International Coffee Organizationstill applied im-export quotas. After 1992, coffee price recovered andgradually reached the top in 1994 and 1995. At this time, everyone fromfarmers, worker families in TayNguyen to city people from Nha Trang to

    HCM cities flocked into looking for soil, buying gardens for coffee, resultingin fast increase in coffee output yearly.

    Vietnam is a top-ranking nation producing and exporting coffee Robusta inthe world, in the 2006-2007 crop, the output reached about 17,4 million 60kg packs of coffee. However, according the Vietnam Cocao and Coffee

    Asociation, real output could be 21 million packs, increasing 56%compared with 2005-2006 crop.

    Development of area and output of Vietnam coffee in the past crops

    Crops Area (ha) Output (tons)

    1992 1993 140.000 140.400

    1993 -1994 150.000 181.200

    1994 1995 215.000 211.920

    1995 1996 295.000 236.280

    1996 1997 350.000 342.300

    1997 1998 410.000 413.580

    1998 1999 460.000 404.206

    1999 2000 520.000 700.000

    2000 2001 500.000 900.0002001 2002 480.000 700.000

    2002 - 2003 450.000 680.000

    2003 2004 948.000

    2004 - 2005 831.000

    2005 - 2006 702.000

    (Source: Vietnam Cocao and Coffee Asociation)

  • 8/3/2019 Vietnam CoffEe 2007

    7/24

    7

    With the total planting area has reached over 500.000 ha, and output of

    over 10million packs each year, at the present coffee ranks the second afterrice in the catalogue of Vietnam exporting agricultural products. In order to

    reach such a high ouput, Vietnam coffee industry attract about 300.000families, with more than 600.000 labours, especially in 3 months ofharvesting, these figures can be 700.000 or 800.000. Thus, the number oflabours in coffee industry has reached 1.83% of total labours nationwide in

    common, and 2.93% of agriculture in particular.

    4. Raw materials for production

    Raw material coffee for production of Vietnam is harvested from materialproduction areas mentioned above in II.1. Apart from Tay Nguyen, recently,Son La has planned to aim at coffee as the main goal for agriculture

    development. Son La determines to develop the main tree of coffee till 2010will reach area of 10.000 ha coffee with the total output of 6.000 tons,

    assuring for the demand of developing processing industry. This is apromising source of material for the demand of developing Arabica

    processing industry.

    5. Production trend

    At the present, the amount of Vietnam exporting coffee to the world market

    accounts a high rate, but the quality is not high enough, so the export turn-

    over is still low.

    Many main coffee production areas in Vietnam still aplly old production

    methods. To maintain the 2nd

    position in the world of exporting coffee,Vietnam coffee industry will concentrate in improving the quality of coffee

    products. So, the first task is to care about the quality by improving breed,creating a new variety with high productivity and good quality. Besidesm

    Vietnam also apllies new technology in production.

  • 8/3/2019 Vietnam CoffEe 2007

    8/24

    8

    6. Major producer

    After 1975, in starting production, Vietnam only had a few old processingworkshops. In the North, there were some in Dong Giao, Phu Quy, with the

    equipment since 1960-1962 by Germany. In the South, there were some ofold land exploitation like Rossi, Delphante. Together with extending the

    coffee planting area, Vietnam also began to build new processingworkshops, from separate equipment to production chains copying the

    Hang-xa sample of Hai PHong 1/5 Mechanic Factory, A74 Factory in HCM

    City. In recent years, mnay companies have built new processing factorieswith equipment imported from Germany, Brazil.

    Processing agents with new equipment, good quality have been built inrecent five and 7 years assure to process from 150.000 to 200.000 tons

    export coffee. Besides, there are many uncompleted reprocessing agentswith many separate machines, processing of preliminary treatment boughtfrom civilians in order to assure export standard.

    7. Domestic and foreign famous coffee brands

    Vietnamese coffee are widely known by domestic and foreign consumers

    thanks to best brands including Vinacafe, Trung Nguyen, Thu Ha, Bao Loc,Buon Ma Thuot, etc. Thu Ha Coffee is the brand proceeded by former Dinh

    Dien brand which existed before 1975.

    Other best known brands are also finding ways to improve its coffee qualityby applying new advanced technologies. These brands owners have

    marketed instant coffee made by Moka and Robusta or coffee products withflower favors, etc.

  • 8/3/2019 Vietnam CoffEe 2007

    9/24

    9

    III. Domestic consumption

    1. Market features

    Although this is a big market with huge population, the demand on coffeeproducts is still limited. Vietnamese coffee products are made mostly to beexported.

    2. Consumption situation

    The average amount of coffee that Vietnamese people consume each yearis 0.5 kg per one. Recent reports of World Bank show that with its potential,Vietnams market may consume 70,000 tons per year. It means that thismarket can consume 10% of the amount harvested each year which is700,000 -800,000 tons. Meanwhile, according to the World CoffeeAssociation, Vietnams domestic consumption is now nearly 3.6% which is

    the lowest in the group of coffee producers. This difference is bigger ifcompared to the amount consumed by the members of the World Coffee

    Association which is 25.16%.

    Coffee beans of Vietnam are mostly produced for exportation. Like manyother industries such as aquatic or farm products, coffee producers are

    more interested in producing for exportation than domestic consumption..A new way of Vietnams coffee producers is investing in a production line

    of ground and instant coffee to meet the demand of the domestic taste butthe result is still limited.

    3. Consumption trend

    Among the Vietnamese young people, the trend of drinking instant coffeeis more and more popular to meet the demand of the modern life. Instant

    coffee becomes the main trend of consumption so it has different tastesand meets different demands very well. However, the investment inproducing instant coffee requires a huge ammount of caapital and cost oftechnique transferring, which troubles small and medium enterprises. As a

  • 8/3/2019 Vietnam CoffEe 2007

    10/24

    10

    result, they still focus on producing and exporting coffee beans or groundcoffee and skip the domestic market.

    The too high rate of exported coffee at this time has put a pressure of

    exporting market for Vietnamese coffee, especially when the exportingmarket have problems, Vietnams coffee industry may easily go into anoverproduction and suffer from big disadvantage in prices. Therefore,Vietnam intends to encourage domestic consumption. The amount

    consumed in 2010 which is estimated to double the current amount andaccounts for 20% of the production may be able to limit the pressure.

    4. Price

    The coffee prices in 2007 has fluctuated extraordinarily. Average FOBprice in Vietnam in the first 3 months is 1417 USD per ton, much higher

    than that of the last year which was 289 USD per ton. The amount of cofeeexported has a sharp and extraordinary rise in the first 3 months of the

    year reaching 494,000 tons, 228,000 tons higher than the same period ofthe last year. This is also the reason why the price declined in March.

    In the first 6 months of 2007, the price of coffee in Vietnam rose very

    quickly and followed closely to the world market. The average FOB price inHochiminh city declined by 53USD per ton in March and rose again in April,

    and in June reached the average of 1802 USD per ton, rised by 177 USDper ton compared to the previous month and 326 USD per ton compared

    to April 2007.

    The defference between the domestic and the world price decreased from

    200 to 100 USD per ton. The price of rough coffee beans (c ph nhn x)in Vietnam in June 2007 rised 10% than May which is 2,530 VND per kg,reaching 28,171 VND per kg.

    In August 2007, the pice in Vietnam delined sharply to 1,679 USD per ton,

    132 USD and 7.3% lower than the average price of the previous month

    ( the reason is that the timed price of robusta coffee is declined due to the

    fluctuation in the world financial market). But in September, the price

  • 8/3/2019 Vietnam CoffEe 2007

    11/24

    11

    continued to rise and the average price reached 1,739 USD per ton, rising50USD per ton compared to the August.

    At the end of November 2007, the export pice of robusta range II of

    Vietnam continued to rise slightly , fluctuating in the range of 1,650 to1,685 USD per ton, decreasing about 200 USD compared to the middle ofNov, but still 23% higher than the same period of the last year. The price ofcoffee beans also falls to 26,400 VND per kg, 200VND lower than in the

    middle Nov but still 5000 VND higher than the same period of last year.

    At the beginning of December 2007, the price of robusta range II of

    Vietnam continues to slightly decrease, fluctuating from 1615 to 1625 USDper ton, 2.12% lower than the end of Nov 2007. The domestic price ofcoffee beans fluctuates from 26200 to 26400 VND per kg.

    Therefore, the price of Vietnamese coffee is still 50-70 USD per ton lower

    than other coffee producing countries (the reason is that the tradingdoesnot comply with the international standard)

    (Source: Daktra)

    Vietnamese coffe export price in October 2007

  • 8/3/2019 Vietnam CoffEe 2007

    12/24

    12

    5. Distribution channels

    To meet the domestic demand, Vietnamese producers can distribute

    directly via big super markets or retail shops or open their own coffeebarsExpanding marketing and domestic consumption channels byserving the demand of drinking instant coffee is now one of the ways

    chosen by some producers in Vietnam. Besides Trung Nguyen coffee barchain, a number of brands like Highland, Phuc Ban Me, Buon Me Thuot

    coffee are opening their own coffee bars in big cities like Hochiminh city,Can Tho, Quy Nhon,This is aimed to market and introduce their products

    rather than to ger high revenues.

  • 8/3/2019 Vietnam CoffEe 2007

    13/24

    13

    IV. Export situation

    1. Yield and turnover of export

    In recent years, Vietnamese coffee industry has had rapid developments.In 2000, the exporting amount of Vietnamese coffee reached 874,676 tonswith the turn over of 263,259 thousand USD. In the crop of 2006-2007,

    Vietnam exporting amount is 1.28 million tons with the turnover of 1.899billion USD, rising by 40.45% in number and 94.19% in value compared to

    the same period of the last year.

    Kinds of Vietnamese coffee exports in the crop 2005-2006

    NoKind Production(tons) Turnover

    (USD)

    1 Beans 785,146,773 837,771,354

    2 Instant 869,705 2,770,341

    3 Others 8,890 92,996

    Total 786,025,368 840,634,691

    ( Source : Department of Customs )

    In September 2007, export coffee of Vietnam reached 38,13 thousand tonsvalued USE 65,93 million, reducing 10% in term of quantity and 12,46% interm of value compared with that in August 2007 (yield of export coffee in

    August 2007 reached 41,943 thousand ton valued US$ 74,145) reducing20,46% in term of quantity and increasing 6,95% in term of value

    compared with that at the same time with that in 2006. In October, Vietnamexport coffee reached 972,65 thousand ton valued US$ 1,467, increasing44,58% in term of quantity and 86,71% in term of value compared withOctober 2006 (reached 539,042 thousand ton valued 0,21% ).

    By October 2007, export turnover of coffee was at top of Vietnam export

    agricultural products. Vietnam is at the second position in the world rankingin term of export yield of coffee kernel to the world market.

  • 8/3/2019 Vietnam CoffEe 2007

    14/24

    14

    Estimated in 2007, the whole country exported 900.000 ton of coffee with

    turnover reaching 1,5 million USD; of which coffee in Dak Lak coveringmore than 50% of yield. Annual crop in 2006- 2007, yield of coffee in Dak

    Lak harvested was 435.000 ton kernel coffee. For the first nine months of2007, Dak Lak has exported with turnover of 479 million USD.

    2. Export market

    Within 2005-2006 period, Vietnam exported Kernel coffee into 71 countries

    in the regions. Export market has been expanded not only in Europe and

    America, but also Middle East, Africa, some countries in ASEANAssociation and Middle America. Top ten countries import Vietnam coffeeare German, USA, Spain, Italy, Belgium, Poland, France, Korea, Britain,and Japan, which import 3/4 exported coffee amount of Vietnam.

    In 2006, the biggest markets for Vietnam Coffee is German market,

    accounting for 15% total annual export output, then USA, Spain with 11%and lastly Japan, Korea, and Poland.

    Th trng xut khu c ph ca Vit Nam 2006

    15%

    11%

    11%

    7%

    5%5%4%

    3%

    39%

    c

    Ty Ban Nha

    M

    Italia

    Ba Lan

    Hn QucNht Bn

    Anh

    Cc nc khc

    (Source: Vietnam Customs)

    Markets of Vietnamese coffe export price in 2006

  • 8/3/2019 Vietnam CoffEe 2007

    15/24

    15

    Some major import markets of Vietnam in some months in 2007 as follows:

    Germany market: Germany is the biggest import market of

    Vietnam. In March, 2007 Germany import reached 25,968tons with the value of USD 37,140,603 and in three month

    earlier of 2007 Germany import reached 70,287 tons with thevalue of USD 102,553,942. In September 2007 Germanyimported 4,731 tons with the value of USD 8,163,052 and inthe nine months earlier of 2007 Germany imported 138,568

    tons from Vietnam with the value of USD 211,034,414.

    USA is the biggest agricultural products market in the worldand at the same time is major coffee import market in the

    world. It is estimated that in 10 years demand for import of theUnited States will increase 10% a year and the amount of

    coffee imported will increase by each year. Specifically, for theperiod 2005 2006 the United States imported 192 tons of

    instant coffee from Vietnam, accounting for 22% of total exportamount of 829.7 tons and by March 2007 the United States

    imported 15,660 tons from Vietnam with the value of USD22,608,078. In the three months earlier of 2007 the United

    States imported 56,016 tons from Vietnam with the value ofUSD 80,778,659. By nine months earlier of 2007, the UnitedStates imported 100,167 tons of coffee from Vietnam with thevalue of USD 151,823,721, increasing 40% in compared with

    three months earlier of 2007. According to assessment ofVietnam commercial affairs in the United States, by 2010, the

    amount of coffee of Vietnam exporting to USA will face

    abnormal changes. In case of competitive price and goodquality, Vietnam can export to USA market with averagegrowth of 10 15% and the export turnover to this market can

    reach the value of USD 350 million in 2010.

    Spain is also the major coffee export market of Vietnam. Atthe present, demand for coffee consumption in this market is

    relatively high. Therefore, import output of this market

  • 8/3/2019 Vietnam CoffEe 2007

    16/24

    16

    accounts for 11% of total volume of coffee export of Vietnam.In march 2007 Spain imported 12,375 tons coffee from

    Vietnam with the value of USD 18,257,866 and in threemonths earlier of 2007 Spain imported 33,386 tons from

    Vietnam with the value of USD 49,187,793.

    England is the biggest market for coffee import. The demandfor coffee consumption in this market is relatively high. Theamount of coffee imported to this market increases by each

    year. At this time, England is the main export market forVietnam coffee and ranks 9th among the country importing

    coffee from Vietnam. According to statistics, in march 2007,England imported 21,729 tons of coffee from Vietnam with the

    value of USD 30,742,361 and the total coffee import ofEngland in nine months earlier of 2007 reaches 27,992 tons

    with the value of USD 40,654,142.

    Coffee import situation to Korea market is strongly promoted.Demand for coffee consumption in this market is high. In the

    recent years, amount of coffee imported to this market hasfaced abnormal changes and declined dramatically. However,

    import amount has improved considerably. In 2004, Koreaimported 35,000 tons of coffee from Vietnam with the value ofUSD 35,883. By the nine months earlier in 2007, Korea hasimported 22,446 tons coffee from Vietnam with the value of

    USD 11,453,615. At the present, Korea is ranking 8th amongthe coffee importing markets from Vietnam and is one of

    stable importing markets of Vietnam. The volume and coffee

    import turnover from Vietnam of this country is increasing.

    Coffee exporting market in march and three months earlier of 2007

    Name of

    countryunit March,2007

    Threemonthsof 2007

  • 8/3/2019 Vietnam CoffEe 2007

    17/24

    17

    amountvalue(USD)

    amount value (USD)

    India ton 852 1.083.272 1.161 1.400.935

    England ton 4.47 6.448.636 21.729 30.742.361

    Swiss ton 206 344.976 262 434.832

    Poland ton 2.369 3.438.455 8.942 12.849.838

    Belgium ton 4.795 7.149.106 18.501 27.167.482

    Portugal ton 953 1.490.983 1.986 3.096.142

    UAE ton 991 1.373.694 1.336 1.908.537

    Canada ton 909 1.353.871 1.865 2.745.036

    Taiwan ton 106 163.045 262 427.894

    Denmark ton 376 532.644 886 1.274.308Germany ton 25.982 37.140.603 70.287 102.553.942

    Estonia ton 384 525.971

    Holland ton 5.027 7.355.389 13.753 20.215.900

    Korea ton 3.823 5.430.993 8.13 11.453.615

    Hong Kong ton 73 114.048 217 328.789

    Hungary ton 216 222.371 709 959.554

    Greek ton484 728.082 1.378 2.055.205

    Indonesia ton 14.96 21.615.845 26.389 38.048.390

    Italy ton 12.63 18.908.082 42.562 63.027.692

    Malaysia ton 2.51 3.666.046 5.841 8.304.248

    USA ton 15.66 22.608.078 56.016 80.778.659

    South Africa ton 398 523.979 2.404 3.349.444

    new Zealand ton 96 141.6 480 680.64

    Russia ton 3.073 4.428.280 7.851 11.368.938

    Japan ton 6.47 9.789.756 14.514 21.906.011Australia ton 1.705 2.449.597 4.988 7.048.865

    Finland ton 292 421.921

    France ton 3.202 4.645.974 11.876 16.819.751

    Philippine ton 1.861 2.537.533 3.346 4.710.534

    Zech republic ton 84 113.337 336 474.876

    Singapore ton 1.948 2.593.63 4.143 5.536.231

    Slovenia ton 826 1.239.312 2.362 3.529.362

  • 8/3/2019 Vietnam CoffEe 2007

    18/24

    18

    Spain ton 12.375 18.257.866 33.836 49.187.793

    Swedish ton 315 465.36 672 992.544

    Swiss ton 12.678 17.105.248 55.194 76.678.568

    china ton 1.344 1.989.313 3.542 4.990.411

    (Source: Vinanet)

    3. Major exporters

    In the year 2005/06, there are 124 enterprises participating in coffee exportall over the country in which 52 enterprises are members of Vietnam

    Association of coffee and cocoa, accounting for 41.9%. Memberenterprises have exported 595,673 tons with the turnover of USD

    637,033,155, accounting for 75.95% market share. Besides, other three

    connecting members which are Dakman, Neumann, Gruppe takes part in

    coffee exporting market with export amount of 113,104 tons and the valueof USD 128,120,954, accounting for 14.27% market share. It is noticeablehere that these connecting members have exported with higher unit priceand achieved USD 1130 per ton in comparison with other members with

    USD 1070 per ton, exceeding 5.6%. 68 enterprises which are notmembers take part in exporting. These enterprises have exported 84,341

    tons with the value of USD 88,816,190, accounting for 10.64% of marketshare.

    Vietnam enterprises popularly sell coffee with back subtraction, later

    stopped price method. This is a kind of price speculation and they have toface a lot of risk. At the same time, transaction price changes by day,minute, second requiring the horse-trading of the transactor as the value of

    each lot of goods is great which can make the enterprise suffer from lossesand even bankruptcy.

    Now there is one company in Vietnam which is Trung Nguyen Coffee

    Company is given certificate on good agriculture practice and coffeequality. Trung Nguyen becomes the only Vietnam Company given the

    Eurep certificate. At the mean time this company has operated a factoryprocessing instant coffee G7 in the Tan Dong Hiep A industrial zone (Binh

  • 8/3/2019 Vietnam CoffEe 2007

    19/24

    19

    Duong) with the capacity of 3,000 tons a year and the total investingcapital of USD 10 billion.

    VINACAFE General Corporation is the state-owned company with 100%

    state capital and is the biggest member of Vietnam Association of cocoaand coffee. This enterprise has 70 companies and plantations. Annually,VINACAFE exports a large number of coffee accounting for 20 25%coffee output of the whole country.

    4. Export opportunity and strength

    Supply source of coffee is big and regularly distributed within the year.Vietnam is now ranking second among the coffee producing countries. Thesupply to the market is considerable. Vietnam can distribute about 600,000

    700,000 tons of coffee each year.

    Natural condition: Vietnam has many advantages; the soil and climate are

    suitable for the growth of coffee. Thanks to natural condition, Dak Lak hasdeveloped coffee with remarkable rate. Before 1975, Dak Lak had about

    12000 hectares of coffee however this area has increased to 174000

    hectares in the whole province in earlier 2007. at the present, area forcoffee growing is 489,000 hectares all over the country.

    Abundant workforces: Agricultural workforce in Vietnam is crowding, and

    Vietnam farmers are industrious and experienced in coffee cultivation andaccessible to advanced production and processing technology in the world.

    International cooperation opportunities: Some coffee exporters such asIndonesia and Malaysia have offered to cooperate with Vietnam to bringbenefit to coffee producers and export enterprises.

    Coffee Cultural Week in 2007 is an activity following Coffee Festival held inBuon Me Thuot in 2005 and an intermediate step to prepare for CoffeeYear with Coffee Festival hold in Buon Ma Thuot by 2008. The Coffee

    Cultrual Week is organized with compact images representing information

  • 8/3/2019 Vietnam CoffEe 2007

    20/24

  • 8/3/2019 Vietnam CoffEe 2007

    21/24

    21

    V. Import situation

    Vietnam produces approximately 100, 000 tons of coffee every year. Thereare many domestic coffee supply sources, especially Rubusta coffee. This

    explains why coffee is rarely exported into Vietnam. Arabica anddissolvable coffee are mostly imported.

  • 8/3/2019 Vietnam CoffEe 2007

    22/24

    22

    VI. Orientation and policies for developing coffee exportof Vietnam

    Vietnam has adjusted its orientation and strategy in following contents: Moving structure of trees, identifying strategic target for the branch.

    Reducing production price and enhancing business effect. Manufacturing and providing many kinds of goods for market except

    multiplication coffee in order to meet requirements of consumers. Manufacturing goods with high quality such as organic coffee,

    special coffee etc.

    Innovating purchase relationship, expanding market for Vietnamcoffee trees, interest towards local market. Reducing coffee area, only retaining suitable areas based on

    research inspection process and planning for coffee trees. Having plans and directions of changing structure of tree growth for

    unsuitable coffee areas to suitable other trees, which brings

    economic and environement effetiveness. Constructing mechanism of suitable coffee gender; apart from typical

    coffee, it also needs to develop other coffees such as tea cioffee,

    jackfruit coffee etc Strengthening construction of infrastructure, innovation of

    technological equipments, establishing price policies in productpurchase with the principle of high quality, high price bargain, lowprice bargain for low quality, evenly without purchase.

    Constructing organization system to guarantee for brand name to

    appear in local and foreign market. Expanding kinds of coffees not only multiplication coffee but also

    improvement of soluble coffee etc. Strengthening, synchronously dealing with plan of implementation,

    particularly in organization in order to create firm coffee production. Expanding market for Vietnam coffee trees in foreign countries,

    promoting coffee consumption at local market.

    Development of Arabica coffee trees at places which have enoughself-intensive farming conditions, area reaches about 1.000 ha;

    output from 3.000 - 4.000 tons goods and private brand name.

  • 8/3/2019 Vietnam CoffEe 2007

    23/24

    23

    Constructing soluble coffee processing plant with capacity of 500tons/year to provide for local market and export.

    Development of strong coffee production industry in Vietnam.

  • 8/3/2019 Vietnam CoffEe 2007

    24/24

    24

    VII. Useful address

    Vietnam Coffee and Cocoa Association (VICOFA)

    No135A Pasteur, Ward 6, district 3, Hochiminh city

    Tel: (84-8) 8231513/ 8231520Fax : (84-8) 8231511

    Email: [email protected]: http://www.vicofa.org.vn

    Ministry of Agricultural and Rural Development (MARD)

    http://www.mard.gov.vn