Vietnam aims to increase the value of coffee products by processing more than 25 percent of its coffee beans by 2020, according to the Processing and Market Development Authority under the Ministry of Agriculture and Rural Development.
The country hopes to increase the output of roasted coffee from 26,000 tonnes at present to 50,000 tonnes by 2020, mainly for domestic sale.
The ministry has encouraged localities, particularly in the Central Highlands, south-eastern and Mekong Delta regions, to develop technologies to process some 55,000 tonnes of instant coffee annually.
Despite making up a modest percentage of the country’s total coffee beans, processed coffee is expected to rake in more than US$1 billion from exports and domestic sales, a quarter of the sector’s production value.
The ministry said it would support coffee processing investment via restructuring products to increase added value.
The State will also help export firms train staff with qualifications and English proficiency, promote trade and participate in international coffee workshops and fairs as well as call for investment in processing industry set joint ventures and get involved in foreign supply chains.
Processing coffee is a stage that creates the highest added value from VNĐ70 million to VNĐ100 million (US$3,004 to $4,291) per tonne of coffee beans.
However, processed coffee makes up less than 10 percent of total coffee production nationwide. The country only has eight instant coffee processing plants and 11 mixed instant coffee ones with a respective total capacity of 36,480 tonnes and 139,850 tonnes per year.
On the other side, Vietnam has hundreds of small-scale roasted coffee processing facilities.
At present, the country has more than 664,633ha of coffee, up 14,000ha compared to 2017, including 606,938ha for commercial coffee. In the 2017-18 crop, Vietnam harvested 1.529 billion tonnes of coffee beans, mainly from Central Highlands provinces.
On September 25th, 2018, international financial institutions and representatives of worldwide development agencies will meet for the Vietnam Economic Infrastructure Development Forum to discuss upcoming business opportunities in Vietnam.
Original source: Viet Nam News
Published on 8 August 2018
