Puratos Grand-Place Vietnam (PGPV), a joint venture between Belgium’s confectionery manufacturers Puratos Group and Grand-Place Holding, is Vietnam’s largest chocolate manufacturer. It is now boosting exports to Europe, the United States, Japan, and South Korea. Having been operating in Vietnam since 1994, PGPV currently has two factories – one producing chocolate and powder in the southern province of Binh Duong, and another processing cocoa mass in the Mekong Delta province of Ben Tre.

“Our factories have a designed capacity of 10,000 tonnes. However, they cannot operate at full capacity due to shortages of bean supply. Thus we have to import about 4,000-5,000 tonnes a year from the Philippines, Papua New Guinea, Uganda, Congo, Ghana, and Ivory Coast. We are purchasing more than 60 per cent of Vietnam’s total cocoa output on an annual basis,” Justin Jacquat, regional cocoa manager of Puratos, told VIR. “More than 70 per cent of chocolate in Vietnam used materials provided by PGPV.”

Partner networks offer fillip for cocoa industry, Photo: Thanh Tung

Vietnam’s total cocoa area is estimated to stand at about 2,700 hectares, with an average annual output of as many as 3,000 tonnes.

Over the past few years, PGPV has launched its own Cacao-Trace initiative aimed to purchase cocoa beans from localities. “We are boosting cooperation with many farmers’ households, cooperatives, and domestic companies to purchase high-quality beans and expand cocoa plantation areas in the provinces of Dak Lak, Dak Nong, Phu Yen, Binh Thuan, among others,” Jacquat said.

Cacao-Trace is a sustainable chocolate sourcing programme. It not only deals with the challenges in the industry but is an ‘expert’ in supporting the development of the farmers’ process, from seeding to taking care and harvesting the cocoa beans, in a sustainable way from.

PGPV is cooperating with more than 2,000 cocoa farmers. Previously, farmers harvested 500-600kg of bean per ha. However, under the company’s assistance, the figure has soared to an average 1.5 tonnes per ha within Cacao-Trace communities.

Other companies such as Marou, Trong Duc, BariaChocolate, CIC, and Nam Truong Son are also engaging actively in the Vietnamese cocoa industry.

Purchasing about one-quarter of Vietnam’s total cocoa output annually, Ho Chi Minh City-based Marou Chocolate currently has 19 stores nationwide, largely found in Vietnam’s biggest cities. It seeks to open stores in Singapore, France, and Dubai, and many of its products are organically produced. “We are continually developing a large network of local partners to directly purchase cocoa beans to produce future organic products. They include cooperatives and individual fermenters throughout 10 provinces,” said Vincent Marou, CEO of Marou Chocolate.

In 2024, the company’s total revenue grew by 50 per cent, which is also expected for this year.

High prices are encouraging agriculture companies to invest in the Vietnamese cocoa industry, which is full of potential. Marou’s demand for cocoa and chocolate continues to rise strongly, at 20-30 per cent a year. Cocoa prices have soared by 150 per cent since early 2024 and chocolate prices have followed suit.

Pham Huu Thoi, director of Nhat Thong Dak Lak Agriculture Co., Ltd., has added cocoa to its multisectoral investment and business portfolio since 2020. Thoi has invested about $6 million into developing a high-tech organic farm covering 300ha in Buon Ho town in Dak Lak, including 270ha of cocoa. One tonne of cocoa can be sold at about $8,000.

“Cocoa is easy to plant, and boasts great potential for development, while prices are increasing, currently at $9.80-10.60 per kilogramme in the Central Highlands province of Dak Lak,” Thoi told VIR. “We produce organic cocoa, focusing on natural farming practices.”

It is expected that Nhat Thong will begin exports of cocoa next month.

The EU has been supporting companies like PGPV, Nhat Thong, and cooperatives via a project worth $2.1 million, in producing cocoa for a circular economy. Beneficiaries include 3,500 cocoa producers, 500 employees on cocoa farms, and other cocoa-related businesses. The initiative covers production in the delta provinces of Ben Tre and Tien Giang, and in upland provinces where cocoa production remains strong.

“The project has helped farmers and companies improve cocoa quality and production process towards the circular economy, meeting stringent standards and regulations of the EU and the wider world,” said Julien Guerrier, Ambassador of the European Union to Vietnam. “Previously only beans were used, but now, cocoa pods can be used for making animal feed, organic fertiliser, and even plywood.”

The total funding of the Team Europe support in climate resilience, low carbon development and circular economy in Vietnam, including in the energy sector, currently stand at about €2.4 billion ($2.62 billion).