Nowadays, Vietnam coffee suppliers are everywhere but finding the most long-term and reputable suppliers is not easy. However, most of them have good customer services, diverse product specifications, and stable output.
- 1 Vietnam coffee suppliers – General information
- 2 The reasons for choosing Vietnam coffee suppliers
- 3 Factors affecting on supply chain of Vietnam coffee suppliers
- 4 Finding reputable Vietnam coffee suppliers
- 5 How to work with Vietnam coffee suppliers
- 6 Top Vietnam coffee suppliers are appreciated by world coffee experts
Vietnam coffee suppliers – General information
To cooperate well with Vietnam coffee suppliers, there are many aspects to know about them.
Products of Vietnam coffee suppliers
There are 2 main types of coffee that big Vietnam coffee suppliers often supply in the world coffee trading market.
- Robusta coffee: With favorable natural conditions, Robusta coffee, which has high caffeine content and is often used to make instant coffee, accounts for more than 90% of Vietnam’s green coffee output.
- Arabica coffee: Despite accounting for only about 5% of Vietnam’s green coffee output, Arabica coffee brings high value because of its harsh growing conditions, high quality, delicious taste and wide application.
Unit: thousand tons
|MY 2018/19||MY 2019/20||MY 2020/21|
In addition to these two types of coffee, Vietnam coffee suppliers also bring to the world processed coffee products (roasted coffee, instant coffee). Previously, Vietnam only focused on exporting raw coffee. However, in recent years, with the appearance of a series of coffee processing factories with modern high technology and European investment capital, the proportion of processed coffee in Vietnam is increasing and going in the right direction to enter the production-processing process in the coffee value chain of Vietnam.
Vietnamese coffee export price in MY 2020/21 reached $1,971/ton, 12.5% and 14.3% higher than the same period in MY 2019/21 and in MY 2018/19 respectively. This increase is influenced by the world coffee price rise when the whole world continuously experienced extreme events such as frost in July 2021 in Brazil, floods in September-October 2020 in Vietnam, and the “dead sky” of the Covid-19 epidemic worldwide.
Areas with many Vietnam coffee suppliers
Vietnam coffee suppliers are usually concentrated near the growing areas, which are the Northwest, the Central Highlands and Quang Tri.
- The Northwest is the “land” of Arabica coffee. The two Northwestern provinces, Son La and Dien Bien, are the largest Arabica coffee producers in the country.
- The Central Highlands focuses more on Robusta production than Arabica. Especially, DakLak of the Central Highlands produces 500,000 tons of Robusta per year. DakLak Robusta coffee is imported by more than 80 countries worldwide, contributing to bringing Vietnam to the top position among Robusta coffee exporting countries.
- Quang Tri is a long-standing production area but not yet famous. In recent years, Vietnam has begun to pay more attention to Quang Tri Arabica specialty coffee because of its characteristic salty taste.
The reason for these regions to become the leading coffee producers, as well as the concentration of many Vietnam coffee suppliers, is because of the favorable climate and terrain conditions for the development of coffee, the basalt red soil and the Mekong River system with an abundant water supply and the long-standing farming experience.
Target market of Vietnam coffee suppliers
Currently, Vietnamese coffee has been exported by Vietnam coffee suppliers to more than 80 countries around the world. In which, Germany, Indonesia, Italy, Japan, Spain, Russia and the US are the main import markets for Vietnamese coffee.
Asian countries are markets that have the most advantage in price because of their close geographical distance and wide choice of means of transport. Meanwhile, European countries often choose to import coffee from Vietnam by sea to optimize import costs or import through agreements like EVFTA. This has supported Germany becoming the largest importer of Vietnamese coffee in the past 5 years.
The reasons for choosing Vietnam coffee suppliers
The coffee market is strongly developed and competitive due to the trend of shifting from a tea-drinking to a coffee-drinking culture. Importers have difficulty in choosing a reputable import source in the long term to maintain and develop their business. Here are the reasons why international importers should choose Vietnam coffee suppliers.
- Production advantage: The biggest advantage of Vietnamese coffee is favorable natural conditions. This leads to high productivity, large output and competitive prices. Tropical humid monsoon climate, temperature 15-26 degrees Celsius, altitude from 400-1500 masl, abundant rainfall and sunshine, highly specialized farming system are determinants of coffee productivity in Vietnam. Productivity in Vietnamese coffee plantations can reach 3.5 tons/hectare while Brazil only reaches 1.8 tons/ha.
- Price advantage: The FOB price of Vietnamese coffee is usually 5% lower than the world price, even though domestic costs are included.
- Tariff advantage: One of the obvious advantages when importing Vietnamese coffee is taking advantage of opportunities from the Vietnam-EU FTA (EVFTA). EVFTA has implemented a policy of tax reduction for all coffee products including green coffee, roasted coffee, and processed coffee down to 0%. This is a great advantage for buyers when importing coffee from Vietnam coffee suppliers.
Factors affecting on supply chain of Vietnam coffee suppliers
In addition to supply and demand factors, logistics factors also affect the supply chain of Vietnam coffee suppliers
- Influence of supply
The supply of Vietnam coffee suppliers in the last 3 years has decreased slightly due to the impact of epidemics and natural disasters. However, this decrease is not significant and Vietnam continues to maintain its position as the second country in the world in terms of Vietnamese coffee exports.
|MY 2018/19||MY 2019/20||MY 2020/21|
|Vietnam coffee export output||1.17 million tons||1.16 million tons||1.07 million tons|
- Influence of demand
The demand for coffee during the year-end festive season has made the demand for coffee skyrocket, especially after the worldwide Covid-19 vaccination campaign. People gradually return to daily life, the consumption of coffee is not only at home, but at cafes, at work, everyone drinks at least one cup of coffee every morning.
- The influence of logistics
The prolonged Covid-19 epidemic at the end of the year caused logistics activities at seaports to be delayed, causing transportation costs to increase significantly, about 7 times higher than before. Vietnam coffee suppliers as well as buyers suffer a lot from customs warehousing and they hope that next year, this situation will improve.
Finding reputable Vietnam coffee suppliers
Currently, Vietnam coffee suppliers are everywhere, whether in Vietnam or abroad. Buyers can find and buy reputable Vietnam coffee suppliers through the following channels:
- Intermediaries: Intermediaries usually have headquarters or branches in Vietnam and other countries. They often travel between Vietnam and other countries to work with partners around the world. So they have many relationships with reputable Vietnam coffee suppliers.
- Agricultural fair: This is the first choice of longtime and reputable Vietnam coffee suppliers. Because they are very confident in showing the quality products they have as well as their financial ability.
- Search online: Searching online will be extremely effective if knowing how to use searching tools like Google, wholesale E-commerce platforms. These free or very low cost tools will be your companion in the process of learning about any Vietnam coffee suppliers.
How to work with Vietnam coffee suppliers
Many people wonder how to work with Vietnam coffee suppliers, what important documents need to be prepared when importing Vietnamese coffee, and thousands of other questions. Here are 5 basic steps to work with Vietnam coffee suppliers after you have found one or several reputable Vietnam coffee suppliers.
Step 1: Send Letter of Intent (LOI) through contact channels of Vietnam coffee suppliers targeted by buyers such as gmail, messenger, Whatsapp. A standard LOI usually includes basic information about the buyer’s company, the expected products, their specifications, the shipping address, and the desired price if any.
Step 2: After Vietnam coffee suppliers receive the buyer’s LOI, they will check the stock and respond to the buyer with Formal Corporate Order (FCO). In the FCO, it will be clear whether the supplier is capable of providing the item the buyer wants, and whether it meets the standards set by the buyer or not. If yes, the two parties will negotiate to come up with the Final Corporate Order.
Step 3: Based on FCO, Vietnam coffee suppliers will send buyers samples to experience the product. If the buyer is satisfied with the product, the two parties will negotiate in-depth and sign a commercial contract. This is the legal proof for the cooperation between the two parties.
Step 4: After signing the contract, the two parties will jointly perform the obligations and responsibilities of the contract and track the order to avoid errors. A coffee export order usually lasts 1-2 months depending on the lead time, delivery time and means of transport agreed by both parties.
Step 5: After receiving the goods, the buyers need to check the goods carefully both in terms of quantity and quality. If there are any problems with the order, it is necessary to immediately notify the Vietnam coffee suppliers to come up with the best solution together. If the goods and services of Vietnam coffee suppliers are of good quality, then the two parties can come to sign a long-term contract.
Top Vietnam coffee suppliers are appreciated by world coffee experts
Here are the top 3 Vietnam coffee suppliers that coffee importers should not miss. Otherwise, they will regret not experiencing the services and products here.
Vinacafe is a brand supplying instant coffee belonging to Vinacafé Bien Hoa Joint Stock Company. This Vietnam coffee supplier offers all types of instant coffee from affordable to premium and focuses mainly on the Eastern European market.
Phone: +84 855 555 837 (Whatsapp available)
If you want to buy high quality green coffee beans, then look to K-Agriculture. Established in 1996, this Vietnam coffee supplier has 25 years of experience exporting green coffee beans worldwide. K-Agriculture offers a wide range of beans from Commercial Robusta to Specialty Arabica. K-Agriculture is also a pioneer in optimizing business through online search channels, supporting buyers during the Covid-19 pandemic when it is not possible to go directly to Vietnam to buy goods.
Phone: +84855 555 837 (Whatsapp available)
WS cafe is a bulk Vietnam coffee supplier. Although established not long ago, WS cafe is dominated by professional and quality customer care services, helping buyers enthusiastically through every period.
Phone: +84 855 555 837 (Whatsapp available)