Deep processing holds key to boosting agricultural export value

In the first nine months of 2026, Vietnam's key agricultural exports, including coffee, fruits, and vegetables, saw increased production and significant export turnover. To boost value in the remaining months, businesses in these sectors must move away from raw exports, prioritize deep processing, build brands, and expand markets.

The Vietnam Coffee-Cacao Association (Vicofa) reported that Vietnam exported nearly 1.5 million tons of coffee, generating around US$6.6 billion. Vicofa anticipates an 8% to 10% increase in export volume this year, but export turnover may not reach high levels due to falling prices. The issue lies in Vietnam's continued reliance on green coffee beans, while true value lies in processing, distribution, and branding.

The Vietnam Fruit and Vegetable Association (Vinafruit) revealed that total fruit and vegetable export value reached nearly US$7.4 billion, a 19.9% increase compared to the same period last year. Durian, coconut, dragon fruit, passion fruit, pomelo, mango, and processed fruit and vegetable products all contributed to maintaining turnover.

However, Vietnam has long been a top coffee exporter, but the high-value segment in the global coffee chain remains in processing, distribution, and branding. Phan Minh Thong, chairman of the Phuc Sinh Group, noted that the raw coffee market is saturated, and businesses must invest in deep processing to grow. In July 2026, Phuc Sinh Group invested in a new production and processing center in Lam Dong Province, focusing on deep processing.

Vietnamese businesses are recognizing opportunities in highly processed products like instant coffee, roasted and ground coffee, and blended coffee, with strong consumer demand in many markets. The Chinese market, in particular, shows a large and growing demand for these products. By early October, many Vietnamese processing enterprises had secured export orders to China until December 2026.

Deeply processed coffee uses only 8% to 10% of raw materials but can contribute 17% to 18% of export turnover. According to Vu Ba Phu, Director General of the Vietnam Trade Promotion Agency, to increase coffee export value with limited domestic production resources and high productivity, focus on advanced processing techniques and establish a strong brand identity.

In the coming period, the Ministry of Industry and Trade, Vicofa, and relevant organizations will support businesses in developing strategies to enhance brand value and promote Vietnamese coffee internationally. Vice President Nguyen Dinh Tung of Vinafruit observed a positive shift in the structure of exported fruit and vegetable goods, with an increasing proportion and turnover of processed items.

Businesses are showing interest in investing in deep processing, such as frozen products, dried products, or fruit juice concentrate. There is vast potential to expand the export market share for processed fruits and vegetables. To enhance the value of Vietnamese agricultural products, incentive policies should encourage major corporations to invest in deep processing plants near concentrated raw material areas.