Exporters are required to establish robust connections with farmers when it comes to processing, photo Le Toan

The Trung Nguyen Legend coffee energy plant will break ground on March 10 in the Central Highlands city of Buon Ma Thuot, reaffirming the group’s efforts to perfect the coffee ecosystem.

Vo Ha Giang, director of communications at Trung Nguyen Group, said this would be the fifth plant for the group, focusing mainly on processing and exporting roasted coffee.

“With a total investment of over $80 million, the plant will become the largest plant for such activities in Southeast Asia, with a processing capacity of over 30,000 tonnes of green coffee beans. This will drive deep processing and elevate the value of Vietnamese coffee on the export map,” Giang said.

Explaining the reason for choosing to build the coffee plant in the so-called capital of robusta coffee in Vietnam, Giang said Buon Ma Thuot is also the birthplace of the group.

The company also wants to attract more international investors to Vietnam’s coffee sector. Trung Nguyen Group is currently ranked fourth in export turnover for roasted and instant coffee in Vietnam, and ranks 16th among raw coffee export enterprises for the 2023-2024 crop year.

Currently, the company has exported its products to over 100 countries and territories, including major markets such as the US, China, and India.

According to the Vietnam Coffee Cocoa Association (VICOFA), Vietnam exported over 150,000 tonnes of coffee with an export turnover of nearly $800 million in Januar. The average export price of coffee reached $5,450 per tonne, a 78.5 per cent increase compared to the same period in 2024.

In particular, processed coffee for export reached about 17,000 tonnes in January, with an export turnover of $104 million. This continues the achievements of 2024, when Vietnam exported nearly 1.35 million tonnes of coffee, earning a record turnover of $5.62 billion.

Nguyen Nam Hai, chairman of the VICOFA, said various coffee growers would continue to have opportunities to expand their export market in the 2024-2025 crop year.

“Fluctuations in major coffee-producing countries such as Brazil, Colombia, and Peru, along with the US decision to impose tariffs on goods from South America, will push coffee prices up. Vietnam, the leading producer of robusta coffee worldwide, will benefit from these fluctuations,” Hai said.

According to the former Ministry of Agriculture and Rural Development (MARD), Vietnam’s robusta coffee exports account for 40 per cent of global Robusta production. It is forecast that in the 2024-2025 crop year, the country’s robusta coffee production will reach around 1.67 million tonnes.

“Currently, the price difference between arabica and robusta coffee is over $3,700 per tonne. The continuous increase in arabica coffee prices has led coffee roasters worldwide to start buying robusta coffee for blending,” Hai added.

He said that for sustainable export operations, exporting enterprises need to establish strong connections with farmers to create high-quality coffee plantations, enhance deep processing, and promote robusta coffee as a quality alternative with lower costs.

Nguyen Xuan Huong, director of External Relations and Communications at My Viet International Group, which also has a plant in Buon Ma Thuot, said instant coffee is becoming increasingly popular due to its convenience, accompanied by the strong development of processing tech.

“Embracing this trend, My Viet International has boldly invested in modern technology, becoming one of the pioneering enterprises in deep coffee processing,” Huong said.

Huong said the current market mainly uses two coffee refining technologies: spray drying and freeze drying.

Spray drying is popular due to its low-cost and fast production process, but this method involves high temperatures, which may result in the loss of some natural flavours and beneficial compounds in the coffee beans.

In contrast, freeze-drying technology, although requiring higher initial investment, helps preserve almost entirely the aroma, rich flavour, and important nutrients.

Freeze-dried coffee not only provides a tasting experience similar to that of pure coffee but also retains beneficial components for health, such as chlorogenic acid, which offers various benefits, including supporting weight loss, improving cardiovascular health, stabilising blood pressure, and enhancing brain function.

“This is also the consumption trend of the new generation, where coffee is not just a beloved beverage but also seen as a healthy product,” Huong said.

Although there is no information available yet on processed coffee export volume for the 2023-2024 crop year, according to the VICOFA, Vietnam exported over 89,900 tonnes of processed coffee in the 2022-2023 crop year, raking in $511 million.

The former MARD forecasts that by the end of this year, Vietnam’s coffee exports could reach 1.46 million tonnes, an increase of about 8 per cent compared to 2024, setting a record with export turnover reaching approximately $7 billion.

Trinh Duc Minh, chairman Buon Ma Thuot Coffee Association The average coffee consumption worldwide is around 5.5kg per person per year, with Finland topping the global list at an average of about 12kg per person per year. While Vietnam is the world’s second-largest coffee exporter, coffee consumption per capita in Vietnam is relatively low compared to the global average. This is because coffee is not the main beverage consumed throughout the day. It is mostly seen as a drink for staying alert rather than for leisurely enjoyment as in other countries. The majority of Vietnamese people consume inexpensive instant coffee instead of high-quality coffee, which reduces overall coffee consumption. Additionally, the culture of speciality coffee and premium coffee brewing has not been strongly developed in Vietnam. Coffee shops mainly serve basic products, lacking diversity in types and flavours. By 2030, the target for domestic coffee consumption is three kg per person per year, equivalent to 300,000 tonnes, accounting for only 18 per cent of the total production of 1.6 million tonnes. In contrast, Brazil, the largest coffee producer, also has the highest domestic consumption rate at around 30 per cent. Therefore, instead of solely focusing on exports, many enterprises are now paying more attention to the domestic market. Phan Minh Thong, CEO Phuc Sinh JSC The global coffee market is undergoing noticeable changes towards sustainable coffee, speciality coffee, and coffee with traceable origin certification. Consumers are increasingly interested in products that are environmentally and socially responsible, especially in demanding markets such as the EU, the United States, and Japan. For Vietnamese coffee to not only maintain its position as the number one robusta producer but also elevate its value on the international market, the coffee industry must break free from the mindset of exporting raw materials and focus on quality, branding, deep processing, and technology. This is also the strategy that Phuc Sinh Group has been pursuing. Phuc Sinh has proactively invested in coffee-growing regions that meet international criteria, such as developing Arabica and Cascara coffee farms in Son La province according to Rainforest Alliance standards. The company has collaborated closely with farmers to improve productivity and quality, while implementing source traceability to meet strict standards such as EU timber regulations. As a result, the value of Phuc Sinh’s coffee products has increased by 30-50 per cent compared to raw exports, while also expanding into the premium segment of the market. I believe that if we head in the right direction, the Vietnamese coffee industry will not only maintain its number one position in the world in robusta exports, but also have the potential to conquer the speciality coffee market and increase sustainable value for farmers.