Vietnam coffee export company is a bridge between Vietnamese coffee manufacturers and international consumers. They bring the highest quality coffee at competitive prices and they become proud of Vietnamese.
Contents
- 1 Brief information about Vietnam coffee export company
- 2 The reasons why you should choose Vietnam coffee export company
- 3 Factors affecting on Vietnam coffee export company
- 4 Ways to find Vietnam coffee export company
- 5 How to work with Vietnam coffee export company
- 6 Vietnam coffee export company: Top 3 best companies
Brief information about Vietnam coffee export company
Vietnam coffee export company is a business that exports Vietnamese coffee to international markets.
Roles of Vietnam coffee export company
Vietnam coffee export companies play an extremely important role in the Vietnamese coffee industry.
- Promoting Vietnamese coffee export: Vietnamese coffee is grown widely throughout Vietnam in large quantities, so to maximize profits and speed up the export process, Vietnam coffee export company was born to complete the mission to promote Vietnamese coffee export in terms of both quality and quantity.
- Contributing to the development of the national economy: The average annual coffee export value is about 3 billion USD, accounting for more than 10% of the total export turnover of agricultural products. To achieve this, Vietnam needs a lot of Vietnam coffee export companies participating in stages in the coffee value chain.
- Building Vietnamese coffee reputation: Vietnam coffee exporters has brought many different Vietnamese coffee brands to the world. Each Vietnam coffee export company will have a different advantage, depending on the natural conditions, seeds characteristics, and processing technology. Therefore, each Vietnam coffee export company will have a unique feature for its product.
Roles of Vietnam coffee export company
Types of Vietnam coffee export company
To talk about the types of Vietnam coffee export companies, it is necessary to mention two main types:
- Direct Vietnam coffee export company is a company that has enough potential in both supply and demand. Every year, they will register for export quotas depending on their export capacity and directly work with the authorities, shipping lines, and customers whenever they have ordered. They will control the entire process from the source in, the source out to the goods distribution management abroad.
Direct Vietnam coffee export company
- Indirect Vietnam coffee export company is an intermediary company, authorized by export companies. They will provide export services to one or more other entities. Their biggest role is to optimize the export process, locate overseas trading partners, and bring goods to international markets on behalf of suppliers.
Indirect Vietnam coffee export company
Currently, in Vietnam, both of these forms are being maintained in parallel, depending on the strengths, potentials, and development orientations of each company.
Target market of Vietnam coffee export company
Currently, Vietnam coffee export companies have distributed coffee to more than 80 countries around the world. However, the main markets of Vietnam are the US, Germany, Italy, Japan, Spain, Russia, etc.
Target market of Vietnam coffee export company
Convenient transportation from Vietnam to Asian countries along with bilateral and multilateral policies such as the Free Trade Agreement (EVFTA) between the EU and Vietnam has become a lever to help Vietnam coffee export companies assert their position in the international market. In which, the three largest Vietnamese coffee import markets are Germany, the US, and Italy having promising export figures in the first 9 months of 2021 as follows:
| Country | Exports | Export turnover | Export price | Proportion | |||
| First 9 months of 2021 (tons) | Compared to the same period in 2020 (%) | First 9 months of 2021 (million USD) | Compared to the same period in 2020 (%) | First 9 months of 2021 (USD/ton) | Compared to the same period in 2020 (%) | ||
| Germany | 181,014 | Down 1% | 319.52 | Up 13,8% | 1,765.2 | Up 14.9% | 15.3% of total volume
14.3% of total turnover |
| America | 96,472 | Down 13.9% | 189.42 | Down 5% | 1,963 | Up 10.2% | 8% of total volume
8% of total turnover |
| Italy | 100,464 | Down 11.9% | 171.82 | Down 4% | 1,710.3 | Up 9% | 8.5% of total volume
7.7% of total turnover |
Main products of Vietnam coffee export 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.
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.
The main location of Vietnam coffee export company
Vietnam coffee exporters 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.
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.
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.
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.
The reasons why you should choose Vietnam coffee export company
Vietnam coffee export companies have special competitive advantages that other international companies do not have.
- Stable and abundant export output
In the last three market years, Vietnam has always been the second-largest coffee exporter despite the increasing demand for domestic consumption. However, the coffee production capacity of Vietnam is still at a high level, averaging more than 1 million tons per market year, and is quite stable, less affected by weather changes and diseases. Therefore, Vietnam coffee export companies can supply large quantities of coffee at any time of the year.
Stable and abundant export output
- High-quality products
Vietnamese coffee is grown in favorable conditions: humid tropical monsoon climate, altitude from 400-1500 masl, rainfall, abundant sunshine, specialized farming system. Therefore, the quality of coffee beans is also guaranteed by your Vietnam coffee export company. In which, some types of coffee are ranked as the best coffee in the world such as Son La specialty coffee, Vietnamese weasel coffee bean, etc. The peak time for coffee exports is from December to March when the coffee beans have the best quality and best price.
High-quality products
- Low wholesale coffee beans prices
The average wholesale coffee beans prices of Vietnam are usually 5% cheaper than the world market price. Therefore, big importers in the world often work with the most reputable Vietnam coffee export company to enjoy price incentives from them.
Low wholesale coffee beans prices
- National policy
Vietnam is a developing country and is expected to become a developed country in the future. To do that, Vietnam always strives to increase export value, build a national image and invest in national human resources. Coffee export is a spearhead trade and Vietnam coffee export company is the one that implements supportive policies from the government.
National policy
- Bilateral and multilateral agreements
Vietnam has joined the WTO, signed bilateral and multilateral FTAs to enjoy tariff preferences when exporting, and is supported by the Governments of other countries. Therefore, Vietnam coffee export companies also benefit from these policies and support importers.
Bilateral and multilateral agreements
Factors affecting on Vietnam coffee export company
Changes in supply, demand and many other factors will have a strong influence on Vietnam coffee export companies.
- Supply
In the last three market years, the export volume of Vietnamese coffee decreased slightly because coffee production was affected by floods in October 2020, drought in May-June 2021, and the Covid-19 epidemic for the past 2 years.
Besides, with the decline in quality of perennial coffee trees, leading to low yield, farmers are gradually switching to intensive farming of other crops instead of coffee.
However, these factors do not affect too much, with a cultivation capacity of 3.5 tons/hectare, Vietnam coffee export company is still fully capable of supplying coffee to all corners of the world.
| 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 |
- Demand
The Covid-19 epidemic is complicatedly happening all over the world, and dangerous variations are constantly appearing, but the world’s coffee consumption remains and even grows slightly because of coffee-at-home demand in major coffee consuming countries such as the USA, Germany, Italy, Korea, China, Japan, etc. This is a great opportunity for every Vietnam coffee export company to develop their business.
Demand
- Logistics
Transport is always a matter of concern for every Vietnam coffee export company. Because coffee is a commodity that is often traded in large quantities, the shipping price has a great influence on the order value. The Covid-19 epidemic has delayed international seaports, increased freight rates, and increased storage prices at ports. Vietnam coffee export companies are faced with options to reduce profits to support freight for importers or increase the total value of orders.
Logistics
Ways to find Vietnam coffee export company
Currently, Vietnam coffee export companies are everywhere, not only in Vietnam but they also have branches in foreign countries. Therefore, finding a Vietnam coffee export company also becomes easier.
- 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.
E-commerce platform
- Through online search tools
Google is the free and most informative search tool. Through Google, importers can find companies that appear at the top of the search page. Those could be reputable companies ranked by Google. In addition, e-commerce platforms are also a good choice to buy agricultural products.
- Through an intermediary company
Intermediaries often have branches in both Vietnam and other countries. Therefore, they understand both supply and demand. Coffee importers can find Vietnam coffee export companies through an intermediary company.
- Through the international agricultural fair
The International Farmer’s Fair is a traditional method to find Vietnam coffee exporters. However, due to the Covid-19 epidemic, the organization of these fairs was postponed.
Ways to find Vietnam coffee export company
How to work with Vietnam coffee export company
To do writing with Vietnam coffee export company, you need to go through 6 main steps:
Step 1: Importer sends Letter Of Intent (LOI) to Vietnam coffee export company to describe requirements for his order.
Step 2: If the Vietnam coffee exporters can meet the LOI of the importer, it will send them the Final Corporate Offer (FCO).
Step 3: Vietnam coffee export company will send samples so that importers can have a better experience of the product and have more confidence in the supplier.
Step 4: Signing a contract is a binding commitment under the law of both parties. This is the most important step in the 6 steps, because it is the basis for the two sides to complete the cooperation.
Step 5: Tracking to prepare and shipping goods are main tasks that two parties need to follow together to make sure the order process goes without errors.
Step 6: Receive goods and give feedback.
How to work with Vietnam coffee export company
Vietnam coffee export company: Top 3 best companies
Here are the top 5 Vietnam coffee export companies suggested by major coffee importers in the world. They are “big bosses” with many years of experience in the coffee industry, have their own growing areas, and have a system of modern and advanced factories across the country.
Trung Nguyen Legend
Trung Nguyen is a Vietnam coffee export company. With the intention to become the most loved Vietnamese coffee brand, Trung Nguyen not only has a large growing area in the Central Highlands but also has 4 coffee processing factories, including Asia’s largest instant coffee factory in Bac Giang.
Currently, Trung Nguyen is both developing in the domestic market with a series of Vietnamese coffee chains and promoting the Vietnamese coffee export to the international market. G7 is a typical example. Trung Nguyen’s G7 coffee brand was built with the ambition of building a strong foothold for Vietnamese coffee in 7 powerful countries.
Trung Nguyen offers a wide range of products from popular to high-end products such as weasel coffee, from green coffee beans to roasted and ground coffee, filter coffee, and instant coffee.
Trung Nguyen Factory
Contact information:
Whatsapp: +84 855555837
K-Agriculture Factory
K-Agriculture Factory was established in 1996, as a part of the Trade Promotion Department under the Ministry of Industry and Trade of Vietnam. With 25 years of experience in exporting Vietnamese agricultural products, K-Agriculture is proud to be a pioneer company to apply scientific technology and digital platforms in the production and export of Vietnamese coffee.
Thanks to the professionalism in production and export lines, This Vietnam coffee export company now has a system of coffee processing factories across Vietnam such as Hung Yen, Lam Dong, Quang Tri, etc. with the supply of up to 15,000 tons of coffee/month and warehouse capacity can reach 21500 tons of goods.
K-Agriculture Factory
Currently, K-Agriculture provides Arabica and Robusta green coffee products and high-class coffee lines, Son La specialty coffee and Quang Tri specialty coffee. In addition, K-Agriculture also supplies roasted coffee in large quantities to major coffee consuming countries such as the US, Germany, Italy, Russia, etc.
For further information and best WHOLESALE price, please contact as follows:
Email: info@k-agriculture.com
Website: https://k-agriculture.com/
Whatsapp: +84 855555837
Son Duong Coffee Co., Ltd
Son Duong Coffee supplies Vietnamese coffees such as Arabica, Robusta,… from the main growing regions across the country such as Lam Dong, Dak Lak, etc. This Vietnam coffee export company sets a mission not only to provide high quality products but also to help coffee importers grow their business. Therefore, Son Duong Coffee aims for long-term, sustainable cooperation and builds trust with customers through the quality of products and services. That is shown by the fact that Son Duong Coffee always strives to invest in processing technology, improve production quality, and meet customer standards.
Son Duong Coffee Co., Ltd
Contact information:
Whatsapp: +84 855555837
