Local coffee sector set to face hurdles due to COVID-19

Vietnamese coffee exports are anticipated to encounter a myriad of difficulties over the short term due to the complicated nature of developments relating to the novel coronavirus (COVID-19) pandemic, according to industry insiders.

Local coffee sector set to face hurdles due to COVID-19 ảnh 1

Statistics compiled by the General Department of Vietnam Customs indicate that the country exported 453,000 tonnes of coffee worth US$808.8 million during the first quarter of the year, representing a decline of 9.8% in volume and 5.5% in value compared to the same period from the previous year.

Most notably, the nation’s coffee exports hit their lowest levels throughout the 2019 to 2021 period due to the negative impact caused by the COVID-19 pandemic, leading to reduced consumption demand and unfavourable conditions with regard to getting products through customs.

Furthermore, the blockage of the Suez Canal in March contributed to slowing the process of transporting Vietnamese coffee to markets in both Europe and the United States.

The nation’s coffee exports to Asia during the first quarter experienced an upward trajectory, while exports to other continents decreased against the same period from last year.

The proportion of local coffee being sent to Asia accounted for 45.33% of the total export value, higher than the figure of 33.11% recorded during last year’s first quarter. Meanwhile, the market share to Europe fell from 50.06% in the first quarter of last year to 41.12% in the first quarter of this year.

Moving forward, Vietnamese coffee exports are projected to face numerous difficulties due to the COVID-19 pandemic continuing to spread throughout several European countries, while some Asian countries continue to be at risk of becoming the latest epicentre of the pandemic.

Despite these predictions, the global high-quality instant coffee segment is forecast to enjoy an upward trend due to many people tending to work from home since the early stages of the pandemic, according to experts.

Industry insiders believe that although coffee exports to the EU face hindrances over the short-term, there are bright prospects ahead for the local coffee industry to exploit the potential market in the future.

This is the case following the enforcement of the Vietnam-EU Free Trade Agreement (EVFTA) which is expected to create favourable conditions for Vietnamese coffee enterprises to boost exports to the EU market moving forward.

Economists have therefore advised local firms to fully tap into niche markets in Eastern Europe, especially Poland, where there is a growing number of coffee shops.

Due to the positive developments brought about by the implementation of the COVID-19 vaccination programme in the US, coupled with favourable customs clearances, there continues to be a great potential for Vietnamese coffee exports to penetrate the demanding market in the near future.

Moreover, Japan’s coffee imports from the nation last year increased by 17.3% to US$169 million compared to 2019, with the country’s coffee market share making up 14.33% of Japan's total import value, marking a rise of 2.77% from the figure of 11.56% recorded in 2019.

Amid the recent decline in coffee exports to the both EU and US markets, the local coffee industry has strived to fully tap into markets throughout Asia, including the Japanese market, with export turnover to the fastidious market expected to rise in the future.

VOV

Other News

Data-driven land valuation to curb speculation: Experts

Data-driven land valuation to curb speculation: Experts

From a property-market perspective, Do Thi Thu Giang, National Director of Valuation and Advisory at Savills Vietnam, said the orientations under Resolution No. 21-NQ/TW could make the market more transparent and efficient, with property values increasingly tied to actual development and use potential.

Resolution No. 19-NQ/TW sets new growth drivers for Vietnam

Resolution No. 19-NQ/TW sets new growth drivers for Vietnam

Science and technology, innovation, digital transformation and AI must be translated into higher productivity rather than pursued as ends in themselves. At the same time, people should be placed at the centre of development, not merely viewed as a resource but as the ultimate objective of development policies.

Expo to open door for Vietnamese suppliers to enter US market

Expo to open door for Vietnamese suppliers to enter US market

US retail giant Target is seeking Vietnamese suppliers of household goods, home textiles, children’s products, personal care and beauty products, with a focus on companies capable of manufacturing and developing products that meet requirements on quality, design and supply chain management.

2026 Banking Sector Digital Transformation to open in Hanoi

2026 Banking Sector Digital Transformation to open in Hanoi

The annual event, which will be held on August 18-19, 2026, at the ICE International Exhibition Centre, 91 Tran Hung Dao Street, Hanoi, is expected to attract around 324 delegates and feature 21 booths representing credit institutions, payment intermediary service providers, and technology companies.

Vietnam – one of most attractive destinations for leading US semiconductor companies: expert

Vietnam – one of most attractive destinations for leading US semiconductor companies: expert

Vietnam has built a solid semiconductor and electronics industry before joining ITSI, attracting major US semiconductor companies. Intel Products Vietnam is one of Intel's largest assembly and testing facilities worldwide, while chip design companies such as Synopsys, Cadence, Marvell and Qualcomm have established engineering and research centres in the Southeast Asian country.

Vietnam targets higher-quality FDI under Resolution 10

Vietnam targets higher-quality FDI under Resolution 10

During the first seven months of 2026, Vietnam attracted more than 38 billion USD in registered FDI, up nearly 58% year-on-year. More importantly, the increase was driven by large-scale, high-tech projects rather than a surge in the number of new investments, signalling a significant improvement in the quality of capital inflows.

Manufacturing, engineering drive hiring growth in H1: report

Manufacturing, engineering drive hiring growth in H1: report

Manufacturing and engineering posted the strongest recruitment growth, with hiring demand surging 70% year-on-year, driven by production expansion, supply chain restructuring and sustained investment inflows in high-tech manufacturing.

Government proposes special mechanisms to unblock APEC 2027 projects in Phu Quoc

Government proposes special mechanisms to unblock APEC 2027 projects in Phu Quoc

The projects in Phu Quoc have been implemented under tight deadlines. Since May 2025, the Prime Minister has directed preparations for APEC 2027, including accelerated infrastructure development on the special zone. An Giang province and investors have subsequently launched a number of major projects involving complex technical requirements and demanding construction schedules.

Financial market reform plan targets high, sustained growth through 2045

Financial market reform plan targets high, sustained growth through 2045

The plan seeks to develop a balanced and modern financial market that is closely integrated with regional and global markets, strengthens the mobilisation and allocation of domestic and foreign capital, and enhances the market’s role as a key provider of medium- and long-term capital for the economy and as a major driver of sustained high economic growth.

An Giang aims to become leading maritime economic hub

An Giang aims to become leading maritime economic hub

Under the province's master plan for 2021–2030 with a vision to 2050, An Giang will prioritise investment in five strategic sectors: strategic infrastructure; processing industries and clean energy; trade, services, logistics and border-gate economy; high-quality tourism; and high-tech agriculture, ecological development and the circular economy.