Vietnam shipped around 1.79 million tonnes of coffee abroad in 2016, raking in revenue of US$3.36 billion, up 33.6% in the volume and 25.6% in value compared to the previous year, according to the Ministry of Agriculture and Rural Development.
Vietnam shipped around 1.79 million tonnes of coffee abroad in 2016, raking in revenue of US$3.36 billion, up 33.6% in the volume and 25.6% in value compared to the previous year, according to the Ministry of Agriculture and Rural Development.
These positive figures indicate that Vietnam’s coffee exports have regained strong growth momentum after year-on-year declines in both volume (20.63%) and value (24.82%) in 2015.
The total area for coffee cultivation in 2016 increased slightly by 0.3% against 2015 to 645,400 hectares, while coffee output was estimated at 1.47 million tonnes, up 1% year on year.
Germany and the United States remained the two largest consumers of Vietnam’s coffee, with respective market shares of 15.2% and 13.1%.
Coffee export values have reported increases in most of Vietnam’s key markets, growing 83.5% year on year in the Philippine market, 67.7% in Algeria, 49.7% in China, 49% in the US, 16.8% in Japan and 16.1% in Russia.
According to Luong Van Tu, President of the Vietnam Coffee-Cacao Association, a talking point in 2016 was the increasing contribution of processed coffee products to the total export value of Vietnam’s coffee.
Vietnam’s processed coffee exports are expected to hike considerably in the years ahead as many businesses, both at home and abroad, have been accelerating investment in this field. For example, Nestlé has put into operation a US$300 million instant coffee plant in the southern province of Dong Nai, while domestic companies, including Trung Nguyen and Vinacafe, are also eyeing expansion of production.
The signing of free trade agreements with the European Union, the Eurasian Economic Union and the Republic of Korea is also expected to boost Vietnam’s processed coffee exports.
(Source:Nhan Dan)
