05/02/2020 10:18 GMT+7 Email Print Like 0

Vietnam tightens grip on world’s coffee

Vietnam exported 143,000 tonnes of instant and ground roasted coffee valued at 516 million USD in 2019 thanks to the tidal wave of investment in this sector.

The country now houses four coffee factories, each with capacity ranging from 4,000 to 20,000 tonnes.

Illustrative image (Photo: VNA)
 

Despite their limited long-term investment funds, domestic firms such as Tin Nghia Coffee Corporation, Intimex Group, Viet My International JSC, An Thai Group and Vinacafe Bien Hoa have continued to pour capital into coffee plants. Besides, some foreign businesses also plan to invest in this sphere.

In the year, domestic coffee consumption increased 10 percent, and is expected to rise 15 percent in the coming years.

The Central Highlands region has contributed 30 percent to the sector’s gross domestic product (GDP) and generated jobs for more than 2 million people.

However, like other crops, coffee is suffering from adverse impacts of climate change, prompting farmers to replant coffee trees. Total replanted area amounts to 118,000 ha at present, yet to offer high productivity.

Customs statistics unveil that as of December 31, 2019, Vietnam had shipped abroad 1.61 million tonnes of coffee worth about 2.77 billion USD, down 14.2 percent in volume and 21.5 percent in value.

Coffee is the only Vietnamese agricultural product that has its own day. Vietnam Coffee Day (December 10) is to mark the time when President Ho Chi Minh visited the Dong Hieu coffee farm in Phu Quy, the central province of Nghe An.

The event aims to promote Vietnamese coffee as well as coffee culture, and honour coffee enterprises and farmers.

Ho Chi Minh City will host the fourth Vietnam Coffee Day 2020 with the participation of countries from the Association of Southeast Asian Nations (ASEAN).
VNA/VNP