Vietnam’s Coffee Industry in 2024: Overview

In 2024, Vietnam continues to be a formidable force in the global coffee industry, maintaining its status as the second-largest coffee exporter in the world, just behind Brazil. Vietnam is particularly renowned for its robusta coffee, which plays a pivotal role in the global market. The country’s robusta production, primarily centred in the Central Highlands, accounts for a significant portion of the global supply, making Vietnam an essential contributor to the international coffee trade.

Vietnam’s coffee production remains resilient, with the country benefiting from favourable climatic conditions and advances in agricultural practices. The Central Highlands, especially the provinces of Dak Lak, Lam Dong, and Gia Lai, remain the core areas for coffee cultivation. Farmers in these regions have adopted modern techniques to boost yields, improve quality, and adapt to changing environmental conditions. This has allowed Vietnam to sustain high levels of coffee production, meeting both domestic demand and the needs of the global market.

Vietnam’s coffee industry in numbers

Vietnam’s coffee exports are primarily directed towards the European Union, the United States, and rapidly expanding markets in Asia, such as China and South Korea. The European Union remains the largest importer of Vietnamese coffee, with Germany, Italy, and Spain being significant buyers. In the United States, robusta beans from Vietnam are widely used in instant coffee products and lower-cost espresso blends. Meanwhile, in Asia, the rising middle class and growing coffee culture in countries like China and South Korea have led to increased demand for Vietnamese coffee, both for instant coffee production and for consumption in cafés.

Vietnam’s coffee market

Vietnam’s coffee market is projected to experience robust growth, with the market size estimated at US$511.03 million in 2024. This figure is expected to reach approximately US$763.46 million by 2029, reflecting a compound annual growth rate (CAGR) of 8.13 percent over the forecast period (2024-2029), according to Mordor Intelligence.

This growth is driven by increasing domestic consumption, rising coffee culture, and the expanding café industry across urban and rural areas in Vietnam. Additionally, Vietnam’s established position as a leading coffee producer and exporter supports its domestic market, with local brands and international players competing to meet the diverse preferences of Vietnamese coffee consumers.

Revenue, listed Vietnam coffee companies, US$millions

Revenue, listed Vietnam coffee companies, US$millions, annual

Vietnam’s coffee exports

Vietnam’s coffee exports declined in October 2024, with volumes totalling 45,412 tonnes, valued at US$259.75 million. This represents an 11.6 percent decrease in volume and a 9.5 percent drop in value compared to September, which recorded 51,369 tonnes and US$286.94 million, , according to Vietnam’s General Department of Customs.

Key Vietnam coffee export markets, October vs. September 2024, US$

Source: Vietnam Exports Tracker

Vietnam’s Coffee Industry: Key Players in 2024

Vietnam’s coffee industry is driven by a mix of large corporations, cooperative groups, and smallholder farmers, each playing a crucial role in maintaining the country’s status as one of the world’s leading coffee producers and exporters. These key players are involved in various stages of the coffee supply chain, from cultivation and processing to export and retail.

Vietnam coffee companies

Vinacafe

Vinacafe is one of Vietnam’s most prominent coffee companies, with a long history dating back to the 1960s. The company is well-known for its instant coffee products, which are popular both domestically and internationally. Vinacafe has played a significant role in promoting Vietnamese coffee on the global stage, and it continues to be a key player in the industry through its production, processing, and export operations. The company’s focus on innovation and product development has allowed it to maintain a strong presence in the competitive coffee market.

Trung Nguyên Legend

Trung Nguyên Legend, founded in 1996, is perhaps the most iconic of the coffee brands in Vietnam. The company is famous for its premium coffee products, particularly its G7 instant coffee, which has gained international recognition. Trung Nguyên Legend operates a chain of coffee shops across Vietnam and has expanded its presence globally. The company emphasises the cultural significance of coffee in Vietnam and is known for its focus on high-quality beans, especially robusta, and its efforts to promote Vietnamese coffee culture worldwide.

Simexco Daklak

Simexco Daklak is a leading exporter of coffee from Vietnam’s Central Highlands, particularly from Dak Lak province, the heart of Vietnam’s coffee production. The company works closely with local farmers and cooperatives, providing them with support in sustainable farming practices and quality improvement. Simexco Daklak focuses on exporting both robusta and arabica beans, with an emphasis on traceability and sustainability. The company’s strong relationships with international buyers have made it a key player in the global coffee supply chain.

Intimex Group 

Intimex Group is one of Vietnam’s largest coffee exporters, handling a significant portion of the country’s coffee exports. The company specialises in the sourcing, processing, and export of coffee beans, primarily robusta. Intimex has extensive networks with coffee farmers and cooperatives, ensuring a steady supply of coffee for export. The group is also involved in other agricultural products, but coffee remains its most important commodity. Intimex’s scale and efficiency in operations have positioned it as a major player in Vietnam’s coffee export market.

Vinh Hiep 

Vinh Hiep is another significant player in Vietnam’s coffee industry, particularly known for its focus on sustainable coffee production and exports. The company operates large-scale coffee plantations and processing facilities, and it is involved in both the domestic and international coffee markets. Vinh Hiep is committed to producing high-quality coffee while adhering to environmental and social standards, making it a leader in sustainable coffee production in Vietnam.

Local Cooperatives and Smallholder Farmers

While large corporations play a dominant role, local cooperatives and smallholder farmers are the backbone of Vietnam’s coffee industry. These farmers, often organised into cooperatives, are responsible for the majority of coffee cultivation in the country. Cooperatives provide farmers with access to resources, training, and markets, helping them improve the quality of their beans and achieve better prices. The collective efforts of these smallholders are crucial in sustaining Vietnam’s coffee production and ensuring its competitiveness in the global market.

International Players and Joint Ventures

Several international companies have established joint ventures or partnerships with Vietnamese firms to tap into the country’s coffee potential. Companies like Nestlé and Starbucks have invested in Vietnam, both in sourcing coffee and in developing the domestic coffee market. These collaborations often focus on quality improvement, sustainability, and expanding Vietnam’s coffee reach to global consumers.

Key coffee growing regions in Vietnam

The Central Highlands of Vietnam is the heart of the country’s coffee production, accounting for the vast majority of its output. This region’s high altitude, fertile volcanic soil, and favourable climate create ideal conditions for cultivating coffee, particularly robusta beans, which dominate the area.

Dak Lak Province

Dak Lak Province is the largest coffee-producing province in Vietnam and is often referred to as the heart of the country’s coffee industry. The province is renowned for its robusta coffee, which is known for its strong, bold flavour, high caffeine content, and slightly bitter taste. Although arabica is also grown here, it represents a much smaller portion of the province’s production.

Lam Dong Province

Lam Dong Province, located in the southern part of the Central Highlands, is another key area for coffee production. The region around Da Lat, in particular, is famous for its arabica coffee. The cooler climate and higher elevations of Lam Dong make it well-suited for arabica cultivation. The beans from this area are prized for their mild acidity, fruity and floral notes, and complex flavour profile, which are highly sought after in specialty coffee markets.

Gia Lai and Kon Tum Provinces

Gia Lai and Kon Tum Provinces, also part of the Central Highlands, are significant producers of robusta coffee. The coffee from these areas is characterised by a full-bodied flavour with earthy and nutty undertones, typical of robusta beans. These provinces contribute substantially to Vietnam’s robust dominance in the global coffee market.

The Central Highlands, with its ideal growing conditions and focus on both robusta and arabica, plays a crucial role in maintaining Vietnam’s position as one of the world’s leading coffee producers. The diversity of coffee produced in this region, from the bold and robust flavours of Dak Lak to the nuanced and complex arabica of Lam Dong, underscores the Central Highlands’ importance in Vietnam’s coffee industry.

What’s next?

Coffee has grown to become a major industry in Vietnam and there are huge opportunities for foreign businesses in Vietnam’s coffee industry. From opening a cafe in Vietnam, to exporting coffee around the world, to importing specialty coffee for Vietnam’s many coffee connoisseurs, there are a myriad of ways that foreign coffee firms can make money in Vietnam.

That said, Vietnam has a developing economy and is prone to change quickly. With this in mind, foreign firms should make sure to keep track of Vietnam’s coffee market and the best way to do that is to subscribe to the-shiv.