Coffee prices began to recover following the US announcement of a temporary 10 per cent import tariff on goods from Vietnam, representing an increase of $480 per tonne compared to the slump of two weeks ago.

Local coffee exporters work to improve recognition

Do Ha Nam, chairman at Intimex Group, cautioned that Vietnamese coffee exporters should not become complacent as the US remains one of their key strategic markets.

Intimex Group is Vietnam’s leading coffee exporter, accounting for approximately 19 per cent of the country’s total coffee export market. In the 2024 season, the company exported over 255,000 tonnes of coffee, generating around $1.5 million.

“Vietnam is not the only country exporting coffee to the US. Nations such as Brazil, Colombia, and Indonesia also produce large quantities of coffee and are continuously improving quality,” he said. “This puts pressure on Vietnam to maintain its competitive edge, particularly in robusta, Vietnam’s main export, especially as these countries currently face lower tariffs than Vietnam.”

According to Nam, Brazil is taking the lead in exporting coffee to the US with 8.13 million bags in 2024. Meanwhile, Vietnam and Indonesia each exported only around two million bags to the American market, mostly robusta.

To cope with US tariff policy, Intimex is accelerating market diversification efforts by seeking opportunities to boost export volumes to Europe, the Middle East, and countries with free trade agreements with Vietnam. At the same time, the company is working to improve quality, reduce costs, and build brand recognition to enhance competitiveness.

“Intimex is also adopting a strategic and pragmatic approach by increasing imports of US food products into Vietnam to help balance the trade relationship,” Nam added.

According to the Vietnam Coffee and Cocoa Association, the country exported 1.45 million tonnes of coffee in the 2023–2024 crop year, bringing in more than $5.4 billion. Vietnamese coffee is now present in 80 countries and territories, with the US accounting for over 81,000 tonnes, or 8 per cent of total export value. The US is Vietnam’s fourth-largest coffee export market, after the Germany, Italy, and Japan.

Trinh Duc Minh, chairman of the Buon Ma Thuot Coffee Association in the Central Highlands province of Dak Lak, emphasised that while the US may not be the largest market, it is highly important due to its preference for premium coffee, especially processed varieties like roasted and instant coffee.

“Vietnamese coffee previously entered the US duty-free. The imposition of tariffs on this agricultural product will undoubtedly impact Vietnam’s coffee sector,” he stressed.

Dak Lak is deemed the coffee capital of Vietnam, with 210,000 hectares of coffee plantations yielding over 520,000 tonnes annually.

Minh added, “In the long run, Vietnam’s coffee industry can pivot towards markets with a stronger demand for robusta, such as the EU, China, Japan, and South Korea.”

The Buon Ma Thuot Coffee Association currently includes 200 businesses, with seven of them exporting to the US, mainly small volumes of speciality coffee.

According to the US National Coffee Association, the coffee industry contributes around $343 billion annually to the American economy, with roughly 75 per cent of Americans drinking coffee regularly.

For decades, imported coffee has been tariff-free in the US due to its complete dependence on foreign supply, as it lacks domestic coffee production. As such, a blanket tariff on all supplying nations could lead to coffee prices in the US rising by at least 50 per cent, or potentially more.

Le Duc Huy, chairman at Simexco Dak Lak, said it is currently focusing on fulfilling existing orders to the US.

“We are making the most of the 10 per cent tariff window to ship out all pending orders within the next one or two months,” Huy noted.

He added that the Ministry of Agriculture and Environment has proposed the US exempt key agricultural exports, including coffee, from the new tariffs. “We’re hopeful the talks will lead to positive outcomes for our future export plans,” he added.

By the end of Q1, Vietnam’s coffee exports reached 495,780 tonnes, worth $2.81 billion, down 15.3 per cent in volume but up 45.8 per cent in value on-year due to high prices, according to Vietnam Customs.

In Q1, Vietnam exported 32,395 tonnes of coffee to the US, valued at $180.3 million, down 13 per cent in volume but up 51 per cent in value compared to the same period in 2024.