Promoting deep processing to enhance the value of Vietnamese coffee

Despite being the world’s second-largest coffee exporter, Vietnam continues to face a persistent challenge: low added value due to limited deep processing.

Coffee roasting and grinding at an enterprise in Trang Dai ward. Photo: Vuong The

To build a strong Vietnamese coffee brand in the global market while winning over domestic consumers, increasing the share of deeply processed products plays a crucial role in enhancing value across the entire industry.

High export volume but low added value

The coffee sector currently contributes around 2.5% to the national GDP and provides stable jobs and income for more than two million workers. Vietnam has over 710,000 hectares of coffee plantations, ranking sixth globally, and is the world’s second-largest coffee exporter after Brazil.

However, a key paradox remains: despite high export value, most Vietnamese coffee is still exported in raw form, resulting in relatively low added value.

According to Tran Van Cong, Vietnam’s Agricultural Counselor to the EU, the EU market serves as the world’s largest hub for coffee consumption, import, roasting, processing, and re-export, with strong purchasing power. Vietnamese coffee ranks second in exports to the EU, after Brazil, yet this market is increasingly demanding in terms of quality. While Vietnam’s coffee sector holds significant potential, its export value has yet to fully reflect this capacity. One major reason is that exports remain heavily concentrated in green beans, along with some processed forms such as extracts, packaged products, and instant coffee. As a result, Vietnam maintains strength at the early stages of the value chain but remains limited in higher value-added segments, leading to missed opportunities for upgrading its position.

Experts noted that trade promotion activities need to shift from selling raw materials to developing markets for processed products. In this regard, stronger connections are required with full-package manufacturers, roasters, private-label brands, and buyers in the instant coffee and beverage ingredient segments.

Nguyen Quang Binh, a coffee expert, observed that Vietnam has begun investing in deep processing and specialty coffee development. However, the processing rate remains modest. The continued dominance of green bean exports, despite their lower value compared to processed products, reflects not only production constraints but also market organization challenges. Compared with foreign-invested enterprises, many Vietnamese firms still operate in a fragmented manner and have yet to integrate deeply into global supply chains. Although hundreds of companies are involved in exports, only a limited number can access essential financial support. Binh emphasized that only by organizing the market effectively and establishing a clear value chain can Vietnamese coffee build a sustainable brand.

Nguyen Duc Hung, Director of Napoli Coffee Export Import Trading Production JSC based in Ho Chi Minh City, also stressed that quality is the decisive factor, especially for food products. Import markets enforce strict standards and regulations, requiring Vietnamese enterprises to comply if they aim to strengthen their position globally. He added that in the domestic market, consumer awareness of clean coffee consumption should be improved to foster a healthier market and elevate consumption quality.

Boosting deep processing to increase value

According to Nguyen Thanh Tai, a member of the Executive Committee of the Vietnam Coffee-Cocoa Association (VICOFA), deep processing is considered the most direct pathway to increasing value, thereby reducing dependence on fluctuations in green coffee prices. By expanding into roasting, instant coffee, extraction, or beverage ingredient production, enterprises can build multi-layered revenue structures and improve resilience against market volatility.

For large enterprises and foreign-invested firms, deep processing has become a key priority. Notably, Nestle Vietnam Co., Ltd. has made significant investments in coffee processing at its factories. In 2025, the company increased its operational capital in Vietnam by nearly VND 1.9 trillion to expand the Nestle Tri An factory in Dong Nai. This investment has enabled the company to upgrade technology, enhance the value of Vietnamese coffee, and boost exports of “Made in Vietnam” products to regional and global markets.

Meanwhile, for small- and medium-sized enterprises, the path toward deep processing remains a significant hurdle due to limited capital, technology, and product linkages. Le Thanh Cong, Director of MR Cong Coffee Export Trading and Services Co., Ltd. in Long Khanh ward, said his company is striving to introduce specialized products with higher levels of processing, tailored to specific customer segments. This approach is expected to gradually strengthen the company’s brand in the domestic market while exploring opportunities for international expansion.

Alongside business efforts, promoting deep processing requires a comprehensive and coordinated policy framework. This endeavor includes developing raw material areas linked to processing through cooperative models among enterprises, cooperatives, and farmers, as well as improving access to financing for factory investment projects and establishing clearer regulatory standards for product quality. In addition, stronger support is needed for trade promotion and market expansion to help Vietnamese coffee products reach a wider international audience.

By V. The – Translated by M.Nguyet, Minho