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FDI flows strongly into the coffee industry

25/01/2021

In recent years, Vietnamese coffee has developed as an export-oriented industry. As the world's second largest coffee producer and exporter, Vietnam's coffee products have been exported to more than 90 countries and territories. Coffee accounts for an average of 10% of the export turnover of the agricultural sector.

Despite the world economic difficulties and the stagnation in purchasing power, Vietnam's coffee exports still maintain a very high growth rate. Vietnamese coffee has been exported to 90 countries around the world, including European countries and the United States. Recently, coffee in Asia such as Japan, South Korea, China and ASEAN, etc.

Mr. Luong Van Tu - Chairman of the Vietnam Coffee and Cocoa Association said that the coffee industry has changed to a new stage of development, it is determined that the coffee area has not increased due to the policy of banning logging forests. Therefore, it is necessary to focus on increasing the yield and quality of coffee, increasing the value of Vietnamese coffee beans.

In addition, according to the coffee development orientation to 2030, the coffee industry has identified the main goals as maintaining the position of the second largest coffee exporter in the world; raising added value to increase export turnover from USD 3.6 billion to USD 6 billion by 2030.

Mr. Luong Van Tu affirmed that the coffee industry must promote the export of roasted, instant coffee and other processed products exported to countries around the world. Besides, promote consumption in the domestic market, increasing the consumption in the domestic market from the current 10% to 25% in the next 15 years.

At the same time, it is necessary to maintain and expand foreign cooperation relations; perform the function as legal representative for Vietnam's coffee industry in multilateral relations with the International Coffee Organization (ICO) and regional coffee organizations to attract foreign investment in the coffee production and trading, etc.

In recent years, many businesses set goals to support Vietnam in the development of the coffee industry. Nestlé Vietnam is an example of support to the Vietnam’s coffee industry. Each year, Nestlé Vietnam invests directly in the economy from USD 600 to 700 million through coffee purchasing activities. In addition, the company has also implemented a project to support sustainable farming techniques and replanting coffee trees for more than 230,000 coffee farmers in the Central Highlands provinces.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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