Vietnam's coffee market is a dynamic segment of its booming economy. It presents a fascinating study for anyone looking to understand the country's current business landscape.
At the heart of Vietnam’s coffee market is a compelling story about robusta coffee – a variety historically overshadowed by its more famous counterpart, arabica, but now gaining recognition for its quality and potential.
Robusta, which is the variety of bean primarily grown in Vietnam and exported to the world, has long been viewed as inferior in quality compared to arabica beans.
But recent trends and innovations in the coffee industry are challenging this perception.
"Robusta can produce an excellent quality product but it needs the same attention and love as the arabica if you want to get that result," says Timen Swijtink, founder of Vietnamese coffee brand Lacàph on an episode of We Create Content’s You Don’t Know Vietnam podcast.
This shift highlights a broader trend in Vietnam's approach to production: a move from quantity to quality.
Historically, Vietnam's focus on robusta was driven by its suitability to the local climate and its higher yield.
"Especially from Vietnam, robusta has… a bad rap... Because when robusta was introduced to the farming communities here in Vietnam in the highlands, it was all about quantity,” Timen says.
But the growing global demand for high-quality coffee is influencing Vietnamese producers to refine their robusta beans, not just for quantity but for premium quality.
"The big challenge is convincing farmers that, in fact, they're going to be better off focusing on quality, because that just hasn't been the case for generations," adds Timen.
While Vietnam is reported to be the 5th largest exporter of coffee in the world, Timen thinks it's as low as 15th in the world with regards to its value per tonne.
"The value [of coffee] out of Switzerland is about $33,000 a tonne, while Vietnam is around $1,700 a tonne," says Timen.
"So what we're really trying to do is move more of that value creation and capture earlier into the supply chain... But that transition is not easy," he adds.
Vietnam's evolving coffee industry, especially its emphasis on quality robusta, offers key insights into the country's market dynamics.
This change is emblematic of Vietnam's broader economic narrative: the country is increasingly focusing on improving the quality of its exports and products.
For businesses and individuals looking to engage with the Vietnamese market, understanding this shift is crucial.
The story of robusta is not just about coffee, but about a nation's journey towards quality, innovation, and global recognition.
Understanding this journey is essential for anyone seeking to navigate the complexities and opportunities of Vietnam's business environment.
Read more: Vietnam’s Robusta Bean Is The Key To Our Sustainable Coffee Future on Vietcetera by Sahra Nguyen, founder and CEO of Nguyen Coffee Supply




