Vietnam ranks second in the world in coffee exports but it is primarily raw coffee beans, leaving behind ample space to increase the value of processed Vietnamese coffee, a workshop held recently in Ho Chi Minh City seeking ways to add value to the key agricultural export heard.

Some 1.72 million tons of coffee were exported last year, earning $3.94 billion.

The figures fail to reflect real value, however, due to a low intensive processing rate, according to analysts at the workshop.

Minister of Agriculture and Rural Development Le Minh Hoan said it is necessary to reposition products and market trends and demand in order to increase value by 5-10-fold.

“We need to determine customer demand and supply suitable products,” he said.

The building of a brand name for Vietnamese coffee should be associated with local culture, in order to improve competitiveness, according to Mr. Hoan.

Mr. Thai Nhu Hiep, Vice Chairman of the Vietnam Coffee and Cocoa Association and Director of the Vinh Hiep Co., Ltd., said Vietnam is home to 710,000 ha of coffee, of which 650,000 ha are harvestable, mainly in the central highlands.

He suggested promoting the engagement of businesses and the State in developing value chains, saying attention should be paid to geographical indicators, traceability, and food safety and hygiene.

Mr. Ho Van Muoi, Chairman of the Dak Nong Provincial People’s Committee, stressed the need to change the mindsets of farmers and encourage them to produce clean coffee. The central highlands’ province currently ranks third nationwide in terms of coffee area.

Others suggested incentives along with credit policies to support cooperatives and enterprises.

Vice Chairwoman of the Vietnam Farmers’ Association Cao Xuan Thu Van said it is vital to create links between farmers, cooperatives, suppliers, capital providers, engineers, and consumers to generate value chains.

Businesses should accompany farmers in building high-standard coffee growing areas, she added.

The chairman of a club connecting Vietnamese entrepreneurs with international partners, Dinh Vinh Cuong, said investment in producing clean coffee products to meet market demand, particularly in fastidious markets, is also needed, to boost the value of Vietnamese coffee.

Few companies have Vietnamese coffee brands for export, he added. Thailand, meanwhile, exports luxurious coffee products worth $50-100 per cup at 5-star hotels around the world. But there are no Vietnamese companies among the most expensive coffee brands in the world.

Deputy Director of the Department of Agriculture and Rural Development in the central highlands’ province of Gia Lai, Mr. Doan Ngoc Co, said it is essential to increase the value of both inputs and outputs. “For example, we need to develop high-quality coffee varieties with high productivity in order to increase our competitiveness,” he said. “Agricultural mechanization is also necessary to improve productivity.”

Vietnam exported 180,000 tons of coffee worth $393 million in February, increases of 28.7 per cent and 22 per cent year-on-year, respectively, according to the General Department of Vietnam Customs.

The figure brings the total amount of coffee exported in the first two months of 2023 to 323,000 tons, earning $703 million.