{
  "id": 16147496,
  "title": "Vietnam s coffee industry faces value add challenge",
  "url": "https://urgent.news/2026/10/23/vietnam-s-coffee-industry-faces-value-add-challenge",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-23T03:17:55.000Z",
  "source": {
    "name": "Vietnam Investment Review",
    "slug": "vietnam-investment-review",
    "url": "https://vir.com.vn/vietnams-coffee-industry-faces-value-add-challenge-163466-163466.html"
  },
  "original_language": "en",
  "account": "Vietnam's coffee industry is seeking to boost its value-added exports, despite a 7.3 percent drop in export value compared to the same period last year. The average export price per tonne has dropped by 19.7 percent, with Germany, Italy, and Japan continuing to be the largest markets for Vietnamese coffee. However, China has seen a 63.7 percent increase in value, highlighting potential for growth in Asian markets.\n\nThe Vietnam Coffee-Cocoa Association (Vicofa) data reveals that processed coffee exports have grown to between 116,000 and 150,000 tonnes in the first nine months of the year, generating $1.2 billion. Yet, this sector remains dominated by a few large enterprises, with 10 companies accounting for 85.3 percent of processed coffee exports.\n\nNestlé Vietnam's CEO, Binu Jacob, emphasizes that the key to growth in Vietnam's coffee sector is no longer volume, but value addition. Through the Nescafé Plan, Nestlé has been supporting farmers in the Central Highlands with regenerative farming practices and replanting green coffee trees. This, in turn, enables the production of higher-value products like coffee capsules.\n\nThe company currently purchases around 20-25 percent of Vietnam's annual coffee output, making it the largest buyer. However, the majority of exports are still green coffee beans, with deep-processed coffee only utilizing about 8-10 percent of raw materials but contributing to 17-18 percent of total export value. To strengthen its position in the value chain, the coffee industry must prioritize deep processing, brand development, and stronger inter-enterprise collaboration.\n\nInvestments in production capacity are also rising. Trung Nguyen Legend is expanding its production capacity with a $77 million investment, while Intimex Group plans to expand its instant coffee plant in Binh Duong with a $17.3 million investment. Tata Coffee, a subsidiary of India’s Tata Consumer Products, is also expanding its freeze-dried instant coffee plant in Binh Duong with a $65.5 million investment. Phuc Sinh Group, one of Vietnam’s top coffee exporters, is investing over $19.2 million in a new processing facility in Lam Dong province, with an annual capacity of 50,000 tonnes.\n\nTo meet the demands of global markets, Vietnam must focus on exporting green coffee that complies with regulations like the European Union Deforestation Regulation. Additionally, ensuring quality, meeting standards, and ensuring traceability are becoming increasingly important to boost the value of Vietnamese coffee.",
  "summary": "Vietnam s coffee exports are growing in volume but losing value highlighting the industry s challenge in moving beyond raw coffee exports towards higher value products",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}