VIỆT NAM'S COFFEE EXPORTS AIM FOR $6 BILLION MILESTONE

February was a notable period when Việt Nam exported over 193,000 tonnes of coffee, bringing in US$1.08 billion.

Coffee harvested in Buôn Ma Thuột City, the Central Highlands province of Đắk Lắk. — VNA/VNS Photo

HÀ NỘI — The Vietnamese coffee industry made a distinct impression in the first two months of this year, with export turnover rising by 26.2 per cent year-on-year to US$1.58 billion while volume falling by 28.4 per cent to 284,000 tonnes, according to the Ministry of Agriculture and Environment.

This achievement not only affirmed Việt Nam's position in the global coffee market but also opened bright prospects for exceeding the $6 billion target this year.

The rise of “brown gold”

Last month was a notable period when Việt Nam exported over 193,000 tonnes of coffee, bringing in $1.08 billion – a record figure within a single month. Of this, green coffee beans accounted for the majority with over 178,000 tonnes while processed one contributed nearly 15,000 tonnes.

One of the key factors helping the coffee industry achieve remarkable results was the surge in export prices. The ministry’s report showed that the average coffee price in the January-February period reached $5,574.5 per tonne, up 76.3 per cent compared to the same period in 2024. In February alone, this figure rose to $5,596 per tonne, an all-time record high.

Chairman of the Vietnam Coffee-Cocoa Association (VICOFA) Nguyễn Nam Hải said that high prices helped the coffee industry bring in $1.08 billion in February alone, exceeding all expectations.

The sector’s value growth came not only from green coffee which brought home $956.58 million, up 107 per cent from the same month last year, but also from contributions by deeply processed coffee. In the month, roasted, instant, and blended coffee were sold abroad at over $123 million, making up 11.4 per cent of the total value, indicating a trend towards value-added products that helps elevate the position of Vietnamese “brown gold” internationally.

Germany, Italy, and Japan remained the largest consumer markets, accounting for 16.6 per cent, 9.4 per cent, and 8.2 per cent of market share, respectively. Compared to the same period last year, export value in January 2025 to Germany increased by 53 per cent, to Italy by 5.6 per cent, and to Japan by 10.4 per cent, demonstrating the stable appeal of Vietnamese coffee in traditional markets.

Hải noted that coffee had become a “hot” commodity on world trading floors, attracting significant investor interest. He elaborated that the price difference between Robusta and Arabica coffee was currently about $3,000 per tonne. When Arabica prices rise high, roasters would switch to Robusta – the variety in which Việt Nam is the global leader.

Việt Nam is the world's leading robusta coffee grower. — VNA/VNS Photo

Challenges and opportunities from global market

The Ministry of Industry and Trade’s Agency of Foreign Trade said La Niña might replace El Niño this year, affecting coffee-growing regions in Brazil – the world's largest exporting country. The risk of frost in Brazil could reduce production for the 2025-2026 crop year to its lowest level in three years, creating opportunities for Việt Nam to strengthen its position.

However, Hải believes that although Brazil's coffee production will decrease from July onwards, it will not have great impacts, and the market still needs to be closely monitored.

To deliver on the export target of over $6 billion, the domestic coffee sector needed to maintain its stable cultivation areas and improve quality according to international standards, Hải said, adding businesses need to link purchasing with deep processing while diversifying markets to avoid dependence on a few major partners. Additionally, capitalising on the leading position in Robusta coffee, which accounts for 95 per cent of Việt Nam's production, will be key to maintaining growth momentum.

Deputy Minister of Agriculture and Environment Phùng Đức Tiến held that with the current growth rate, the industry would be able to complete its set target this year.

"The strong growth in export value in the first two months of the year is evidence of the industry's potential," he said, underscoring the need to continue investing in processing technology, expanding markets, and responding flexibly to global fluctuations.

The ministry was working with VICOFA and enterprises to develop a long-term strategy aimed at sustainable development and improvement in the value of the Vietnamese coffee brand, he added. — VNS

Source: VNS