Vietnam coffee exporters and Reason to choose them

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Because of special advantages, Vietnam coffee exporters are the perfect choice for international traders who want to buy coffee in bulk.

Definition of Vietnam coffee exporters

Businesses that supply Vietnamese coffee to foreign markets are known as Vietnam coffee exporters. In other words, they are professionals in trading coffee that can provide the highest quality beans for international partners who wish to buy coffee beans in bulk. 

Export setting of Vietnam coffee exporters

For many years, Vietnam has been the world’s second-largest coffee exporter in terms of output and fifth-largest in terms of value. Also, Vietnam is also famous for being the world’s largest supplier of Robusta coffee.

Export price of Vietnam coffee 

	MY 2018/19	MY 2019/20	MY 2020/21
Vietnam coffee export prices	$1,724/ton	$1,751.2/ton	$1,971/ton

Due to the effects of global and domestic coffee production, the export price of Vietnamese coffee has risen steadily over the last three years.

• Due to supply difficulties caused by the Covid-19 epidemic and an increase in logistics costs, Vietnamese coffee export prices have risen dramatically.
• The US and Europe are the two main importers of Vietnamese coffee. The economy’s reopening after the Covid-19 outbreak has raised the demand for Vietnamese coffee. Therefore, the export price of Vietnamese coffee has risen, making this a favorable time to invest in Vietnamese coffee.
• Crop loss in Brazil due to frost in July 2021 caused world coffee export prices to rise and Vietnam is no exception.

Export output of Vietnam coffee 

	MY 2018/19	MY 2019/20	MY 2020/21
Vietnam coffee export volume	1.17 million tons	1.16 million tons	1.07 million tons

Vietnam’s coffee export volume has fallen during the last three years. The export output for the MY 2020/21 is down 7.5 percent from the MY 2019/20 and 8.5 percent from the MY 2018/19. Due to a variety of factors, the export output of Vietnamese coffee has plummeted.

• The Covid-19 epidemic has been complicated since 2019, and the social distancing has caused farmers’ planting, harvesting, and processing to be disrupted. Therefore, crop quality and coffee production is lowered. There is not enough coffee to ship from Vietnam coffee exporters.

• Because the desire for coffee among young Vietnamese people is growing, the growth in domestic coffee consumption has an impact on Vietnam coffee exporters.
• In the coming MYs, floods in November 2020 and drought in May-June 2021 will also result in major reductions in coffee output and export volume.

Export value of Vietnam coffee 

	MY 2018/19	MY 2019/20	MY 2020/21
Vietnam coffee export value	2,000 million USD	1,980 million USD	1,990 million USD

The export value of MY 2019/20 dropped as a result of the fall in export volume. However, although the amount of exported coffee beans declined in MY 2020/21, the export value climbed, indicating that the quality of Vietnam coffee beans has improved. Both the government and farmers are working to improve the quality of Vietnamese coffee beans at every stage of production, from planting to harvesting to processing and storage.

Coffee export methods of Vietnam coffee exporters

• Direct coffee export

Coffee exporters in Vietnam will be in control of coffee production, processing, and packing, as well as signing contracts with customers and shipping coffee beans directly to them in compliance with Vietnamese export rules.

• Entrusted coffee export

Coffee producers will hire a business called Vietnam coffee exporters to handle all of the essential coffee export procedures, and if the export goes successfully, they will be paid a set amount under a commission agreement. A downside is that Vietnam coffee bean exporters are likely to spend a significant amount of money on this service.

• Coffee export according to a trade agreement between two states

The volume of coffee exported must be followed by a business agreement between the two nations to promote bilateral relations. Importers and Vietnam coffee exporters will have distinct benefits in terms of pricing, tariff, and procedure. For example, the EU-Vietnam Free Trade Agreement (EVFTA) reduced Vietnamese coffee export taxes to the EU market from 7-9 percent to 0 percent.

Main importing markets of Vietnam coffee exporters

Vietnamese coffee has been presented in more than 80 countries and territories around the world, mainly in major markets such as Germany, USA, Spain, Italy, Belgium, UK, and emerging markets such as China, Russia, Korea, Japan, Taiwan, Philippines, Thailand… In which, Germany is still the leading importer of Vietnamese coffee in many MYs.

Famous types of coffee supplied by Vietnam coffee exporters

Types of exported Vietnam coffee are very diverse depending on the purpose of the Vietnam coffee traders. However, there are two popular types: green beans that are primarily processed and processed coffee such as roasted beans or instant coffee.

Green coffee 

Green coffee beans are coffee beans that have just been primarily processed and packed in 60kg as international standards or buyers’ requirements. In Vietnam, there are two main types of exported green coffee, Arabica, and Robusta. However, 90% of Vietnam coffee beans exports belong to Robusta, the remaining 10% is Arabica. That is why Vietnam is the leading Robusta coffee export country in the world. In recent years, the Vietnamese government has implemented policies to promote the cultivation and export of high-value Arabica coffee such as specialty Arabica coffee.

Processed coffee 

Processed coffee, including roasted coffee beans and finished coffee like instant coffee, accounts for about 10% of Vietnam’s total coffee exports. The EU and US market is the most potential importers of processed coffee beans because they have a large demand for roasted coffee beans with Asian countries like China, Korea, etc. are interested in instant coffee most due to its convenience. It is a great opportunity for Vietnam coffee exporters to show high-quality with reasonable prices products. Vietnamese instant coffee is now available in most retail supermarkets of many countries around the world.

Competitive advantages of Vietnam coffee exporters

Vietnam coffee exporters have a competitive advantage over their competitors, which has helped them establish themselves as respected exporters in the international market.

• Selling coffee in bulk

Vietnam coffee exporters are known for supplying big quantities and being always available. Vietnam’s annual coffee production ranks second in the world, importers can acquire significant quantities of coffee at any time of year to satisfy their commercial demands.

• Stable output

Vietnam has been a long-time coffee producer with a lot of expertise in the coffee industry. In addition, Vietnam has favorable natural conditions for coffee cultivation. Thus despite being influenced by internal and external negative factors, Vietnamese coffee output remains relatively consistent for export.

• Comparative price

Vietnamese green coffee beans price is often around 5% less expensive than international coffee. This is a significant benefit for Vietnam, as it allows Vietnam coffee exporters to keep a large number of worldwide consumers.

• High-quality products

Natural conditions are a significant component in determining the quality of coffee crops. Climate conditions, fertile land, and water all contribute to the high quality of Vietnamese coffee beans, which have a distinct flavor and aroma, unlike any other coffee in the world.

• Government support 

The Vietnamese government has offered campaigns to promote Vietnamese coffee production and export. The Ministry of Agriculture and Rural Development has approved the “Vietnamese high-quality coffee” development project, which costs around 170 billion VND by 2030. This project has been established to develop a value chain in coffee production, consumption, and the construction of large-scale high-quality coffee material areas.

Factors affecting Vietnam coffee exporters

The setting of Vietnam coffee bean exports has an impact on Vietnam coffee exporters. Vietnam coffee exporters need to adapt to all the changes to deliver the finest products to importers.

• The influence of supply on Vietnam coffee exporters

Vietnam coffee exports were severely harmed as a result of reduced supply and increasing domestic consumption. As a result, Vietnam coffee exporters need to seek huge amounts from various plantations to suit consumer demand. Thus, the coffee prices also increase.

• The influence of demand on Vietnam coffee exporters

When the demand for coffee rises again towards the end of the year, the “battle” for storing coffee beans among Vietnam coffee exporters becomes even fierce than ever. As a result, the price of export Vietnam coffee has risen.

• The influence of weather conditions on Vietnam coffee exporters

Natural disasters such as floods and droughts hit Vietnam every year. The record flood at the end of 2020, as well as the drought in May and June 2021, have resulted in many coffee trees being damaged. The output decrease makes the price increase. So, Vietnam coffee exporters may be forced to reduce revenues in order to retain customers, or perhaps terminate or postpone the contract.

Finding reputable Vietnam coffee exporters

• Assistance through searching tools

Google or is a free tool so importers can identify trustworthy Vietnam coffee exporters on the first page of Google search results. Coffee importers can also be found Vietnam coffee exporters on Yellowpages, which is a reliable source of information. Furthermore, it is quite beneficial to participate in online forums or groups on Facebook or LinkedIn in order to look for any products you are interested in.

• Intermediary companies

It is now possible to hire intermediary brokers who are familiar with Vietnam coffee exporters. Importers may request to provide a list of coffee exporters, as well as product samples from factories before decisions. Importers, on the other hand, must pay a significant amount of money for this service.

• E-commerce platform 

The E-commerce platform enables businesses to create branded online stores where customers can find and purchase their goods. In which, Alibaba is the most impressive platform with a diverse selection of Vietnam coffee exporters.

• Trade fair

Importers can have direct engagement with Vietnam coffee exporters within a day at a trade show, which is a traditional practice. Importers can get a firsthand look at the samples at the trade show. However, the Covid-19 makes many agricultural trade fairs delayed for a long time. 

Working with Vietnam coffee exporters

Collaboration with large Vietnam coffee exporters is a significant step forward in the coffee trading industry. Because of its long-term high economic worth, coffee is a truly safe investment.

 Price negotiation

• Before the negotiation, carefully compare exporters on the coffee market via the internet or commercial sites.
• To achieve the best pricing with coffee beans exporters, ask for a 15%-20% discount. If buy in a large volume, Vietnam coffee exporters might give better deals.

Samples testing

For first-time customers, it is critical to request samples in order to prevent receiving low-quality goods or waiting a long time and then return unneeded items.

Contract

When negotiating with Vietnam coffee exporters, contracts are extremely important. The contract should ensure that the agreement is in both parties’ best profits and respects common law, and it should be double-checked before signing.

Payment

Vietnam coffee exporters will recommend the appropriate payment method based on the volume of orders. However, it is best to divide the entire order value into 2 installments: before and after receiving the product to ensure that the final goods.

Receive goods and feedback

When the products have arrived at their destination, double-check that they meet the agreed-upon specifications.

If not, contact Vietnam coffee exporters, as soon as possible to discuss your options.

Recommendation: TOP 3 famous Vietnam coffee exporters

The top 3 Vietnam coffee exporters are listed below, and many importers believe they can buy coffee in bulk from them.

Trung Nguyen Legend

Trung Nguyen Legend is one of the oldest Vietnam coffee exporters. Trung Nguyen’s coffee products are diverse from roasted coffee, ground coffee to the famous G7 instant coffee. Currently, Trung Nguyen coffee is available in most retail supermarkets around the world and is the perfect choice for women.

Contact information:

Whatsapp: +84 855555837

K-Agriculture Factory

If the importers are looking for green coffee beans, K-Agriculture Factory is a perfect choice. K-Agriculture Factory is powered by Vietnam’s Ministry of Industry and Trade, so the price here is reasonable and the product quality is high. In addition, K-Agriculture Factory also has leading experts in the field of agriculture, regularly updating the latest information about the coffee trading market in Vietnam and the world as well as how to work with suppliers.

Contact information:

Email: info@k-agriculture.com

Website: https://k-agriculture.com/

Whatsapp: +84 855555837

WS cafe

“WS” in “WS cafe” stands for “wholesale”. WS cafe is also a leading wholesale coffee supplier in Vietnam. The products of WS cafe are very diverse, including green coffee beans, roasted coffee, ground coffee, weasel coffee, instant coffee, etc. to meet import demand.

Contact information:

Whatsapp: +84 855555837