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Key coffee importers included Germany and the US with Belgium
In recent years, coffee has been one of Vietnam
Currently, Vietnam Vietnam
According to a recent report on exports by the Ministry of Industry and Trade (MoIT), Vietnamese coffee has sharpened its competitive edge thanks to favourable climate conditions, lower-cost production and a bumper coffee crop. However, product quality remains low due to out-dated harvest technology and poor processing facilities.
Additionally, Vietnamese coffee suffers from lack of brand name recognition as local exporters’ marketing skills are still limited and over 90% of coffee products are essentially raw unprocessed materials with low added value, MARD reports.
With such disadvantages, Vietnamese coffee’s export price is lower than the world’s average. Nevertheless, thanks to its firm foothold in the global market, Vietnam
Technology upgrade – a must
Economists suggest Vietnam
Nguyen Thi Thu Hang, a senior advisor in export evaluation and capacity building for small-and-medium-sized enterprises, raises her concern over the shrinking coffee cultivation area as aging coffee trees are becoming prevalent and irrigation networks stay outdated, she says.
the local coffee industry should increase product quality by investing more in research, post-harvest technology, and processing facility. It is also equally essential to apply sustainable standards for coffee production and supply high-quality products on request despite low consumption, she says.
Other experts recommend the industry more effectively control coffee growing areas to avoid an imbalance between supply and demand. Coffee farmers should also be required to follow a strict protocol to meet rising requirements of consumers.
The general consensus of industry experts is sustainable coffee export growth will only be achieved if domestic coffee producers, processors and exporters, increase product quality in line with international standards.
VOV