Vietnamese coffee is a potential product that stands out from other types of coffee. In this article, delve deeper into the unique features of Vietnamese coffee that set it apart from other types of coffee and how profitable it is.
1. Vietnamese coffee overview
Firstly, we will take over the overview to answer the question “What is Vietnamese coffee”.
1.1. History of coffee in Vietnam
Vietnamese coffee was first introduced to Vietnam by French colonialists in the late 19th century, but it wasn’t until the mid-20th century that coffee production began to take off. Today, Vietnam is the second-largest coffee producer in the world, with Robusta coffee accounting for the majority of production. The government has implemented policies to support coffee production and processing, and the industry has become a significant contributor to the country’s economy and provides livelihoods for millions of Vietnamese farmers and workers.
1.2. Coffee industry in Vietnam
The Vietnamese coffee industry is a significant contributor to the country’s economy, providing employment and income for millions of people, both exporters and importers and suppliers. Coffee cultivation is concentrated in the central highlands region, with Robusta coffee accounting for the majority of production. Vietnam is the second-largest coffee producer in the world, after Brazil, and is a major exporter of coffee, with key markets including Europe, the US, and Asia. In recent years, the government has implemented policies to support coffee production and processing, and there has been increasing interest in specialty Vietnamese coffee production. However, the industry also faces challenges such as low prices, climate change, and the need to improve quality and sustainability.
Coffee production in Vietnam is concentrated in the central highlands region, which includes the provinces of Dak Lak, Dak Nong, Gia Lai, Kon Tum, and Lam Dong. The region’s fertile soil and favorable climate, with abundant rainfall and cool temperatures, make it well-suited for coffee cultivation, with Robusta coffee accounting for the majority of production. Harvesting coffee in Vietnam is typically done by hand, with the coffee season running from October to January. Despite being a major producer, the industry faces challenges related to quality control, sustainability, and climate change. The government has implemented policies to address these challenges and promote specialty coffee production, with increasing interest in organic and fair trade coffee.
Coffee industry in Vietnam
1.3. Types of Vietnamese coffee
There are two most typical types of coffee in Vietnam, Robusta and Arabica and what does vietnamese coffee taste like.
- Robusta coffee: Robusta coffee, which is the best coffee in Vietnam, is a hardy plant that is more resistant to pests and disease than Arabica coffee. It is also able to grow at lower altitudes, making it easier and cheaper to produce. Robusta beans have a higher caffeine content compared to Arabica, which gives them a stronger and more bitter taste. They are often used in blends for espresso, as their bold flavor profile is able to stand up to milk and other flavors.
- Arabica coffee: Arabica coffee is another type of Vietnamese coffee, which is a more delicate plant that is susceptible to pests and disease. It is also grown at higher altitudes, which makes it more expensive to produce. Arabica beans have a lower caffeine content compared to Robusta, which gives them a smoother and sweeter taste. They are often used in specialty coffee blends, as their complex flavor profile can be appreciated on its own.
While it’s true that Robusta Vietnamese coffee beans generally have higher levels of caffeine, moisture, and oil content compared to Arabica beans. However, due to the more complex and nuanced flavor profile of Arabica which make it more desirable and valuable to coffee roasters and consumers, leads to the higher price.
Besides, there are also other varieties of coffee in Vietnam such as Excelsa coffee, Catimor or Bourbon coffee, but these are not really well-known.
Types of coffee in Vietnam
1.4. What makes Vietnamese coffee different
In recent years, sales of coffee from Vietnam in the international market have experienced an upward trend. Let’s find out why coffee of Vietnam is highly sought after:
- High-quality Robusta coffee: Vietnam is one of the world’s top producers of Robusta coffee, which is known for its strong, full-bodied flavor and higher caffeine content. The quality of Vietnamese Robusta coffee has improved in recent years, making it a popular choice for blending with other coffees.
- Affordable pricing: the price of coffee in Vietnam is often lower than other high-quality coffees, making it an attractive option for importers looking to purchase coffee in bulk.
- Sustainable and organic production: With increasing interest in sustainable and organic coffee, Vietnam has made efforts to promote environmentally friendly production practices, including the use of organic fertilizers and shade-grown coffee.
- Unique processing methods: Vietnamese coffee is often processed using methods such as wet-hulling, which gives the coffee a distinctive flavor and aroma.
- Strong cultural heritage: Coffee plays an important role in Vietnamese culture, with a long history of coffee production and consumption. This cultural significance can add value to the product and appeal to importers looking for unique and authentic products.
2. Reasons why Vietnamese coffee importing a good choice for your business
Vietnam is one of the top nations in the world for exporting coffee. Each year, this country exports approximately 1.65 million metric tons of coffee. Since 2015, this country has been among the nations with the fastest-growing exports of coffee worldwide. As a result, Vietnamese coffee is a highly profitable product for business to import.
2.1. Vietnamese coffee trading thoroughly brings you great profits
Vietnamese coffee trading will utterly make huge profits due to the low cost of importing, large supply, growing demand and competitive advantages:
- Low cost of importing: Vietnam is the second-largest coffee producer in the world, and the country’s coffee industry is known for its efficiency and low cost of production. This can result in lower prices for coffee in Vietnamese, which can translate into higher profit margins for importers.
- Importers have a large supply: Vietnam produces a large amount of coffee each year, which means there is a large supply of Vietnamese coffee available for import. This can help ensure a stable supply chain for importers, which can be beneficial for businesses that rely on a steady supply of coffee.
- Growing demand pushes up the profits : The demand for coffee continues to grow worldwide, and Vietnamese cafe has become increasingly popular in recent years due to its unique flavor profile and lower cost. This growing demand can create opportunities for importers to increase their sales and profits.
- Competitive advantage: Importing coffee in Vietnam can provide importers with a way to diversify their product offerings and differentiate themselves from competitors. This can be particularly important in crowded markets where businesses need to find ways to stand out and attract customers.
Some hot products from Vietnamese coffee:
Vietnamese coffee phin
Vietnamese coffee ice cream
2.2. Favorable conditions for importing Vietnamese coffee
The trade agreements, low taxes, government support, well-established quality control and efficient transportation have contributed to the convenience for the Vietnamese Saigon cinnamon importers:
- Trade agreements: Vietnam has signed several free trade agreements with other countries, which can help reduce or eliminate tariffs on imported goods. For example, the EU-Vietnam Free Trade Agreement (EVFTA) allows for tariff-free trade between Vietnam and the European Union, which can make importing Vietnamese coffee into the EU more profitable for importers.
- Low taxes: In addition to trade agreements, some countries may also offer lower taxes or other financial incentives for importing certain products, including Vietnam cafe. For example, the United States offers a Generalized System of Preferences (GSP) program that allows for duty-free imports of certain products from eligible countries, including Vietnam.
- Government support: The Vietnamese government has implemented policies to support and promote the country’s coffee industry, such as offering subsidies for coffee farmers and investing in research and development. This can help ensure a stable and reliable Vietnamese coffee supplier for importers.
- Quality control: The Vietnamese government has also implemented quality control measures to ensure that coffee from Vietnam meets certain standards and requirements. For example, the country’s coffee export industry is regulated by the Vietnam Coffee-Cocoa Association, which helps to ensure that Vietnamese coffee is of high quality and meets international standards.
- Convenient transportation: Importing coffee from Vietnam can be profitable due to government support, quality control measures, lower taxes, and growing market demand. Favorable transportation conditions, including strategic location, modern infrastructure, containerization, established shipping routes, and technology, can help reduce transportation costs and ensure efficient and reliable delivery.
Favorable conditions for importing Vietnamese coffee
3. The average costs of Vietnamese coffee
The wholesale prices of Vietnamese coffee (3300-7700 USD/ton) are typically lower than retail prices (2200-30000 USD/ton) because wholesalers purchase larger quantities of the product and sell it to retailers who then sell it to consumers. The export prices may differ from wholesale and retail prices because the costs associated with exporting, such as tariffs, shipping, and customs fees, are factored into the final price. As mentioned above, the price of Arabica coffee is generally higher due to several factors such as the lower yield of Arabica trees, the higher costs of growing and harvesting Arabica coffee, and the higher demand for Arabica coffee in the specialty coffee market. Additionally, Arabica coffee is often considered to have a higher quality and more complex flavor profile than Robusta coffee, which further contributes to its higher market value.
However, the market price of Vietnamese coffee is subject to various factors, including the quality of the product, the techniques used for harvesting and processing, the level of demand in the market, the availability of supplies from importing nations, and the competition among different suppliers.