Illustrative image. (Photo:tapchicongthuong.vn)Hanoi (VNA) – Vietnam's 2021 coffee export revenue is estimated at over 3 billion USD despite the COVID-19 pandemic, according to an industry official
Nguyen Nam Hai, vice president of the Vietnam Coffee and Cocoa Association(Vicofa), said the country remains the second largest exporter of the drink in the world, second only to Brazil,accounting for 8.3 percent of the global market share.
Coffeeis one of the six agricultural products that bring back over 3 billion USD per year for Vietnam. It is now present in more than 80 countries and territories, mainly the European Union (EU), the US, Russia, Japan, and theUK.
Yet, the value of coffee is not high as most of it is exported raw.
Accordingto Vicofa, the average price for a tonne of processed coffee is nearly 3,600 USDwhile that of coffee beans is only about 2,400 USD.
To improve the situation, enterprises have promoted processing instead ofexporting coffee beans. Currently, roasted and instant coffee is accountingfor 9.1 percent of the total exports, creating opportunities for the industry as Vietnam is penetrating deeper into the international market through freetrade agreements such as the Comprehensive and Progressive Agreement forTrans-Pacific Partnership (CPTPP) and the Europe-Vietnam Free Trade Agreement(EVFTA).
TheEU is Vietnam’s largest coffee market, accounting for 40 percent of the country's totalvolume and 38 percent of the total value. It is followed by theAssociation of Southeast Asia Nations with 13 percent. Overthe past five years, the export value to the EU has reached between 1.2billion - 1.4 billion USD per year. Vietnamesecoffee also accounts for 30 percent of the total coffee import of China- theworld’s most populous market.
For the next 10 years, Vicofa aims to raise coffee export turnover to between 5 and6 billion USD, Hai said, adding that the export of processed will beincreased for a higher added value.
Accordingto Vicofa, the country has 97 coffee processing establishments with a totaldesigned capacity of 1.5 million tonnes./.
