[NEWS] - Adding value to Vietnamese coffee, how?

To increase the value of Vietnamese coffee, we need to focus on investing in clean coffee production, with policies to encourage businesses to invest in deep processing.

The rate of deep processing of rhymes is still low

At the seminar "Increasing value for Vietnamese coffee, how?", which took place within the framework of the event series Honoring Vietnamese Coffee 2023 organized by Nguoi Lao Dong Newspaper on the afternoon of March 4, Mr. Thai Nhu Hiep - Vice Chairman President of the Vietnam Coffee and Cocoa Association, Director of Vinh Hiep Co., Ltd - said: Currently, the total coffee growing area of the country is about 710,000 hectares, but the harvest is only about 650,000 hectares and the processing rate is very deep. short. Besides, in all countries, coffee is protected, but Vietnam’s Robusta coffee has not been protected by any country. Therefore, Vietnamese businesses need to protect and increase the value for producers and the 5 Central Highlands provinces are the key points of this coffee.

Regarding the issue of adding value to Vietnamese coffee, Mr. Hiep said that currently, we are only developing the top part and have not yet paid attention to solving the root part, so we need the participation of businesses and the State, to tackle the root first. "Focusing on geographical indications, traceability, food safety, and hygiene ... is the key for the coffee industry to develop"- Mr. Hiep emphasized.

And to do that, capital is key. However, at present, agricultural enterprises are having to borrow capital with an interest rate of 12 % per year. This is a huge bottleneck that needs to be removed, needs agricultural credit policies, support for cooperatives, farmers, and product consumption for farmers’ output... At the same time, it is necessary to join hands to link the value chain from the producer to the final stage. Only then can we hope to create coffee products for farmers, for the brand of Vietnam and coffee will have a place.

It is necessary to move towards exporting the whole value chain

Talking at the workshop, Mr. Bui Ta Hoang Vu - Director of the Department of Industry and Trade of Ho Chi Minh City. Ho Chi Minh City - said: Vietnam’s coffee industry is currently exporting "each item" but importing a whole value chain. Citing the success story of Starbucks, Mr. Vu said, Starbucks is a global brand and they export a whole process, coffee technology as well as a sales space while we have not done so yet. Since then, Mr. Vu said that we need to rethink to increase the value of Vietnam’s coffee industry.

“As I see it, we mainly import to serve big coffee brands or products for tourists in accommodation establishments - which people are used to. And it is the responsibility of the Industry and Trade industry to create many coffee brands in Vietnam, produced by Vietnamese companies," said Mr. Vu.

Regarding the support of Industry and Trade for the building of a Vietnamese coffee brand, Ms. Bui Hoang Yen - Representative of the Trade Promotion Department (Ministry of Industry and Trade) in Ho Chi Minh City. Ho Chi Minh said: Over the past time, the Trade Promotion Department has carried out many activities to support and enhance the value and brand of agricultural products in general and coffee in particular.

Specifically, coordinating with ministries, departments, and branches to train farmers to conduct live sales on digital platforms; propaganda about the change of the market after Covid; coordinating with foreign organizations to guide farmers to produce internationally certified products; Organizing delegations to attend exhibitions and fairs abroad...

To improve the value and brand of Vietnamese coffee, businesses need to coordinate with units of the Ministry of Industry and Trade abroad to study and understand market needs to make appropriate changes. In particular, Ms. Yen also advised businesses to have a change in stages such as staff in charge of export sales and purchase of goods. The reason is, in addition to participating in direct fairs, the international trend is that there is an online fair version and sales skills must change in logic and thinking. As for the purchase of input materials, according to Ms. Yen, this department also has to change how the materials are suitable for the production line, approaching the quality required by the importer.

Source from the Ministry of Industry and Trade