Vietnam coffee industry poised for a USD 10 billion era - VINAGRI News

Breaking

Home Top Ad

Exclusively Agriculture News

Wednesday, October 22, 2025

Vietnam coffee industry poised for a USD 10 billion era

VINAGRI News - Vietnam’s 2024 - 2025 coffee season concluded with record export earnings of USD 8.4 billion - up 60% from the previous season - marking an exceptional milestone for both farmers and exporters. As the 2025 - 2026 crop year begins, the industry is set to maintain momentum, supported by high prices, improved yields, and a strategic shift toward deep processing and global brand development.



Summary:

> Coffee exports reached a record USD 8.4 billion, up 60% year-on-year.

Domestic coffee prices are holding at VND 115,000/kg - the highest ever at the start of a new season.

Production in 2025 - 2026 is forecast to rise 10% thanks to favorable weather and replanting of high-yield varieties.

Vietnam targets USD 10 billion in coffee export revenue through value-added processing and brand building.

Exports to the EU and U.S. have surged, with Germany, Italy, and Spain as key destinations.


Vietnam’s 2024 - 2025 coffee season closed on a historic high, with export revenues soaring to USD 8.4 billion - a 60% jump equivalent to roughly USD 3 billion more than the previous year. The achievement surprised even industry insiders and brought unprecedented prosperity to coffee growers and traders nationwide.


Since early October, Vietnam has entered the 2025 - 2026 harvest season. Domestic coffee prices remain strong at around VND 115,000 per kilogram, about VND 5,000 higher than last year’s opening level. On global markets, robusta - Vietnam’s key export - continues to trade at a high range of USD 4,500 - 4,600 per ton, while arabica prices have surged toward USD 9,000 per ton, approaching their February 2025 peak following global tariff tensions under the Trump administration. The widening gap between arabica and robusta has enhanced Vietnam’s competitiveness, as robusta remains an increasingly vital ingredient in blends used by major coffee brands worldwide.


In the Central Highlands, the heart of Vietnam’s coffee belt, farmers are seeing record profitability. “The current price of VND 115,000/kg is the highest ever at the start of a new crop. Prices have stayed strong for three consecutive years, which has greatly encouraged farmers to reinvest in their farms,” said Trần Đình Trọng, Director of Eatu Fair Trade Agricultural Cooperative in Đắk Lắk Province. “If prices remain at current levels, revenue and profits will rise sharply.”


Sharing the optimism, Nguyễn Đắc Đạt, Director of Nga Thanh Trading Co., Ltd. in Lâm Đồng Province, noted that many farmers are holding back their remaining stocks, waiting for even higher prices, recalling record levels of VND 135,000/kg reached two years ago. “Because coffee can be stored without losing quality, growers are in no rush to sell. This has contributed to tighter supply and supported world prices,” he explained.


According to the Vietnam Coffee and Cocoa Association (VICOFA), export volumes in 2024 - 2025 rose nearly 6% to over 1.5 million tons, reversing last year’s decline, while total export value surged to USD 8.4 billion from USD 5.4 billion. VICOFA Chairman Nguyễn Nam Hải expects production in the new season to rise another 10%, supported by favorable weather, replanting with higher-yield varieties, and sustained farmer investment thanks to high prices.


On the strategic front, Vietnam’s coffee industry is pushing deeper into value-added processing and global brand development. “We are strengthening cooperation with the Specialty Coffee Association of America (SCA) to build a stronger identity for Vietnamese coffee - not only in the U.S. but worldwide,” Mr. Hải said. “Like Guatemala, which successfully established its national coffee brand with SCA’s help, Vietnam must reorganize production under modern standards, expand deep processing, and move toward a sustainable USD 10 billion coffee industry.”


VICOFA also reported robust export growth to the EU in the first nine months of 2025. Germany remained Vietnam’s largest buyer, accounting for 14% of total exports, followed by Italy and Spain at 7.5% each. Compared with the same period last year, export values rose 90% to Germany, 47.5% to Italy, and 59% to Spain. The average export price reached USD 5,655 per ton, up 45.2% year-on-year.


The upcoming EU Deforestation Regulation (EUDR), set to take effect in early 2026, is expected to benefit Vietnam, as the country has been rated as having a low compliance risk.


With strong prices, expanding output, and a clear strategy for sustainable development, Vietnam’s coffee industry is entering a new growth phase - one that could firmly establish the country as a global powerhouse in coffee exports worth tens of billions of dollars.


NPK/ Vinagri News (According to Thanh Nien newspaper)

No comments:

Post a Comment