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Things To Know About Vietnam Coffee Company For Foreign Businesses

There are many types of Vietnam coffee companies such as exporters, manufacturers, intermediaries,… Businesses should have basic knowledge of Vietnam coffee company classification and their basic information to exchange easily.

The brief information of Vietnam coffee company

Vietnam is a country that has a large number of coffee products. So, Vietnam coffee company plays an important role in both trading coffee domestically and pushing Vietnamese coffee beans into international coffee markets.

Definition of Vietnam coffee company

Vietnam coffee companies are experts in harvesting and trading products from coffee beans through a variety of channels. They can be plantation owners, businesses, exporters, or suppliers.

Different types of Vietnam coffee company

Vietnam coffee company is divided into 4 main classifications. They are plantation owners, manufacturers, suppliers, and exporters.

Plantation owners

Plantation owners hold tens of thousands of hectares of red basalt land that will be used to cultivate high-quality perennial coffee trees. Basalt red soil covers around 10% of the country’s land area, with the majority of it, concentrated in the country’s high mountains in the Central Highlands. Today’s plantation owners not only plant tiny crops for individual houses, but also function like coffee companies or collaborate to create, effectively use human resources, and implement technology.

Manufacturers

Coffee manufacturers – another type of Vietnam coffee company are often coffee factories where Vietnamese coffee is processed with the aim of changing the form of original coffee beans to another shape. There are two classifications of Vietnam coffee factories being responsible for two different processing stages: Primary-processed Vietnam coffee factory and Deep-processed Vietnam coffee factory. The majority of Vietnamese producers are primary processors, and even roasters operate on a limited scale. Only a few significant coffee firms, such as Trung Nguyen, Vinacafe, and others, have dedicated coffee processing plants (roasting, grinding, instant).

Suppliers

Vietnam coffee suppliers are also considered a popular type of Vietnam coffee company. They provide coffee in large quantities to worldwide buyers. Their mission is the link between the coffee processing factory and the importer. The goal of suppliers’ actions is to improve and speed up the process of getting coffee to customers.

Exporters

A Vietnam coffee company that supplies Vietnamese coffee beans to the global market is called Vietnam coffee exporter. They are good at trading coffee that can provide the best quality beans for international customers. It has two different types of exporters: Direct and Indirect Vietnam coffee export companies.
Although there are many forms of Vietnam coffee company, with the aim of not only creating a foothold for Vietnamese coffee but also increasing the coffee value chain, Vietnam coffee company mainly focuses on the form of suppliers. Every year, Vietnam harvests a large number of coffee beans, in addition to domestic consumption, there is still a lot of storage output. If Vietnam coffee suppliers take it to the international market, coffee will bring a great source of profit for the export industry.

Crucial product of Vietnam coffee company

There are two main types of coffee beans that every Vietnam coffee company trades with their partners. They are green coffee and processed coffee beans.

Green coffee

Coffee is the second most important export commodity after rice, so Vietnam coffee company mainly supply the green coffee market in large quantities.

Vietnam coffee company mainly exports Robusta coffee, which accounts for approximately 40% of the world’s total supply. Accordingly, Vietnam is the second-largest coffee producer in the world. Countries around the world prefer using Robusta coffee beans from Vietnam because of their low acidity, bitter taste, and mocha notes.

Every year, approximately 97% of Vietnam’s coffee production is Robusta, about 1.6 million tons per year.
Green coffee prices were constantly fluctuating in the latter months of the year.

  • The price of Robusta coffee on ICE Europe – London continued to fall at the end of the first session of the week. The January delivery term was $2,375/ton, while the March delivery term was $2,287/ton.
  • Similarly, the price of Arabica coffee on the ICE US floor – New York continued to decline. March spot futures fell to 232.60 cents/lb and May delivery fell to 232.35 cents/lb – very strong declines.

These fluctuations, although small, still affect the exchange of Vietnam coffee company. Concerns about declining demand due to the reemergence of the covid-19 pandemic, which resulted in a prolonged liquidation, drove down the price of coffee on both floors, while the Brazilian reais exchange rate declined, giving customers an advantage to buy coffee on both floors. Brazil increased its output. Meanwhile, the January 2022 futures contract’s expiration in London prompted investors to rebalance their holding holdings.

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Processed coffee

Most of Vietnam’s coffee exports are green coffee beans, but recently, the share of processed coffee (roasted and instant) in Vietnam is increasing, from 5% in 2016 to 12% in 2016. volume and 22% in product value by 2020.
The most potential import markets for processed green coffee are the EU and the US, with a huge demand for roasted and ground coffee due to its convenience. The EU market’s interest in high-quality coffee is a great opportunity for Vietnam coffee company. Vietnam’s coffee industry targets the growing niche markets of Eastern Europe, especially Poland, where more and more coffee shops are growing. This is a great opportunity for Vietnam coffee company to demonstrate high-quality products at reasonable prices. Vietnam’s instant coffee is now available in most retail supermarkets in many countries around the world.

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The main location of Vietnam coffee company

Vietnam coffee companies often concentrate in raw material growing areas or in plains depending on the main purpose of the companies’ activities. Vietnam coffee manufacturers are often located next to the largest coffee plantations in Vietnam such as the Northwest, Central Highlands, and Quang Tri. Meanwhile, exporters are usually found in big cities such as Hai Phong, Ha Noi, Ho Chi Minh city…

The North

Coffee-growing areas in the North are concentrated in Son La and Dien Bien provinces. These localities have an altitude of about 600 – 1200m above sea level, and the cool climate all year round is very suitable for Arabica varieties. This is a long-standing coffee production area and a “mecca” of Vietnamese Arabica. Therefore, Vietnam coffee company in the North are often located around this area, in the provinces of Son La, Dien Bien, Hung Yen,… including factories, roasters,… This will be a good choice with high-quality Arabica for foreign importers.

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North Central

Khe Sanh – Quang Tri, which is located in the North Central region, is another well-known Arabica growing region, with a suitable height and a plain exposed to the powerful Laotian winds coming from the Central Asian desert, dries up the grasslands and the bravest people in Vietnam. Catimor, a hybrid of Arabica, grows well in Khe Sanh – Quang Tri due to its geographical and climatic circumstances. Arabica coffee beans have a strong scent and a salty, bitter flavor when grown here. These flavors have made Arabica Quang Tri a specialty coffee in Vietnam. For the convenience of taking care and harvesting specialty coffee, Vietnam coffee company also build near this planting area.

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Central Highlands

The Central Highlands are due to the tropical and subtropical climate combined with soil suitable for large-scale coffee cultivation, which is the most important coffee-growing area in Vietnam. In particular, Central Highland has a rich red basalt soil (2 million hectares, which accounts for 60% of the country’s basalt soil) with excellent mechanical storage and nutrient absorption capacity. This is a comfortable area to grow Robusta coffee beans.

Moreover, coffee is grown on up to 19,000 hectares in Dak Mil of Dak Nong, a province in the Central Highlands, accounting for a quarter of the district’s land area and producing 42,930 tons, standing at one-third of the province’s total coffee production.

For this reason, Vietnam coffee company is mainly located in provinces such as Lam Dong, DakLak to get high-quality Robusta coffee.

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The South

The South is not the main coffee-growing area in Vietnam because the climate and soil conditions are not really suitable. However, because it is near the Central Highlands, Vietnam coffee company often focuses on preliminary processing areas such as Dong Nai, or cities with large ports to facilitate foreign transportation such as Ho Chi Minh City. At the same time, placing Vietnam coffee company here will help workers have more job opportunities.

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Competitive advantages of Vietnam coffee company

Other foreign companies do not have the competitive advantages that the Vietnam coffee company does.

  • Steady and plentiful output

Despite rising domestic demand, Vietnam has consistently ranked second in coffee exports over the last three market years. However, Vietnam’s coffee production capacity remains considerable, averaging more than 1 million tons per market year, and it is quite consistent, with little impact from weather or disease. As a result, coffee export enterprises in Vietnam can supply huge amounts of coffee at any time of year.

  • High-quality coffee beans

Vietnamese coffee is grown under ideal conditions, including a humid tropical monsoon climate, altitudes ranging from 400 to 1500 meters, rainfall, plenty of sunshine, and a specific agricultural system. As a result, Vietnam coffee company guarantees the quality of the coffee beans. Some types of coffee, such as Son La specialty coffee and Vietnamese weasel coffee, are ranked as the greatest coffee in the world. Coffee exports are at their peak from December to March, when the quality and price of the beans are at their highest.

  • Low wholesale coffee beans prices

Vietnam’s average wholesale coffee bean prices are typically 5% lower than the international market price. As a result, the world’s largest importers frequently collaborate with the most reputable Vietnam coffee company in order to benefit from price concessions.

Factors having influence on the wholesale price of Vietnam coffee company

However, Vietnam coffee company faces challenges during the trade process that have a detrimental impact on the selling price, delivery time, and product quality.

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Effects of climate on Vietnam coffee company

The increase in average annual temperature makes insects and plant diseases appear more and more, which is a potential risk to the harvested coffee output. Moreover, the storms in the middle of 2021 are the main factors leading to the reduction of total coffee beans. As a result, total coffee production will fall as domestic demand rises, resulting in a major drop in export production. As a result, the wholesale price of exported coffee has climbed, forcing the Vietnam coffee company to compete on price with global firms.

Effects of supply on and demand on Vietnam coffee company

The total of Vietnamese coffee exported to the global market has had a strong decrease due to reduced supply and increased domestic consumption. Since then, Vietnam coffee company needs to find farms and plantations that provide products suitable for consumers, leading to higher coffee prices. In addition, by the end of the year, Vietnam coffee company focuses on storing green coffee, causing coffee prices to increase sharply, and export coffee prices have increased accordingly.

Effects of the epidemic on Vietnam coffee company

The COVID 19 epidemic that appeared at the end of 2019 has made it difficult to transport goods domestically and internationally. Employees are absent from work due to social distancing, leading to disruption of product circulation to international markets. The cost of shipping and logistics accordingly increases, making the price of products reach consumers at a very high price. Therefore, Vietnam coffee company has difficulty in finding a carrier and agreeing on delivery payment.

In summary, there are many factors that cause the price of coffee to increase, but the increase is not significant, every Vietnam coffee company still maintains coffee at an affordable price so that customers can always feel secure when buying Vietnamese coffee.

Ways to look for Vietnam coffee company

In today’s era, there are many convenient ways for customers to find Vietnam coffee company. It has three options businesses should consider.

Internet

In the digital age, searching for information on the internet has become the most popular search method to find specific information. Suppose, to search for Vietnamese coffee companies, buyers can search for keywords “Reliable Vietnam coffee company”, “Reputed Vietnam coffee suppliers”… However, through websites, it is difficult for buyers to verify the credibility of Vietnam coffee company because of the freedom to update the information of online users. Businesses should be careful when choosing Vietnam coffee company through websites or e-commerce platforms.

Brokers

For beginners, choosing a broker as a partner is a reasonable choice. They will ensure the quality and exchange processes of products while cooperating with Vietnam coffee company. Along with that, the cost will increase because of the fees paid to the middle man.

International trade fair

Importers can participate in international trade fairs to find Vietnam coffee company to exchange needs. There, buyers can directly view sample products on display. However, with the epidemic situation continuing for the past 2 years, the fairs are organized gradually on a small scale to ensure the safety of attendees.

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Top reputed Vietnam coffee company

Here is a list of top reliable Vietnam coffee company for foreign businesses you should not miss. Their main products are green coffee, roasted coffee, and specialty coffee.

Trung Nguyen Legend

With a total investment value of more than 152 billion VND, Trung Nguyen Coffee Co., Ltd is the largest Vietnamese coffee processing factory in the Central Highlands, including two workshops for processing powdered coffee and instant coffee.

This Vietnam coffee company processes coffee powder that has a capacity of 1,500 tons of finished products per year. Around 60% of powdered coffee will be sold to Japan, Singapore, Thailand, Germany, and a few new countries like the United States, Canada, Russia, the United Kingdom, and France. In addition, the factory makes instant coffee worth more than 120 billion VND using contemporary European technology.

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K-Agriculture

K-Agricultural Company – one of the best Vietnam coffee company has contributed to bringing thousands of tons of Vietnamese coffee to the world, especially to demanding markets such as the US, Japan, and Africa. Before being put on the domestic and global market, the products are carefully selected by hand and processed according to special methods to ensure the quality of each grain. K-Agriculture specializes in the export of a wide range of Vietnamese coffee beans, particularly specialty coffee beans. K-Agriculture’s best-selling products are Specialty Arabica Quang Tri, Dalat, Lac Duong and Robusta Lam Dong.

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Contact information:
Email: info@k-agriculture.com
Website: https://k-agriculture.com/
Whatsapp: +84855 555 837

Vinacafe Bien Hoa Factory

Vinacafe Bien Hoa was born in 1968 as the predecessor of Coronel Coffee Factory. This Vietnam coffee company is most famous product is the 3-in-1 instant coffee because of its convenience.

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Up to now, Vinacafé’s third factory is invested more than 500 billion VND, built on an area of ​​nearly 5 hectares in Long Thanh Industrial Park, Dong Nai province, which is 4 times larger than the second factory and 40 times larger than the first factory of Vinacafé Bien Hoa.

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