Being the ones who produce and bring the signature Vietnamese coffee to the global market, Vietnam coffee manufacturers, with their experience and expertise, have long been an indispensable component of the current bustling coffee culture.
- 1 Overview of Vietnam coffee manufacturers
- 2 Competitive advantages of Vietnam coffee manufacturers
- 3 What affects the coffee price of Vietnam coffee manufacturers
- 4 Where to find Vietnam coffee manufacturers
- 5 How to identify reliable and scam Vietnam coffee manufacturers
- 6 Top renowned Vietnam coffee manufacturers
Overview of Vietnam coffee manufacturers
Ever since the introduction of coffee to Vietnam in 1857, Vietnam coffee manufacturers have appeared and worked long and hard for the development of this country’s coffee industry.
Definition of Vietnam coffee manufacturers
Vietnam coffee manufacturers are those who execute the steps following the coffee harvest. Other than processing, Vietnam coffee manufacturers also take care of the stages of roasting and packing the product. These Vietnamese coffee products are loved across the globe and have been exported to more than 80 nations, especially Germany, Japan, Indonesia and so on. With the rising trend of using instant coffee, Vietnam coffee manufacturers have gradually switched to providing processed coffee instead of green ones in order to increase profit margin and push their revenues.
Types of Vietnam coffee manufacturers
Most Vietnam coffee manufacturers can be categorized into 2 main types: green and roasted coffee bean manufacturers. However, as one of the major coffee bean exporting countries in the world and located at the world coffee belt, Vietnam coffee manufacturers mostly produce raw green coffee beans.
- Green coffee bean manufacturers
Even though Vietnamese coffee beans have appeared in many countries for many years, most of them are raw ones with low economic value. Currently, Vietnam has over 600,000 hectares of coffee, with an average output of about 1.5 million tons per year. In which, the proportion of Robusta coffee accounts for 93% of the Vietnam coffee manufacturers’ output, while Arabica accounts for only a small percentage. In 2020, Vietnam coffee bean manufacturers are estimated to export 1.7 million tons of coffee (mostly raw products) with an export turnover of more than 2.7 billion USD. In the production of green coffee beans, green coffee bean manufacturers can choose the most ideal coffee processes depending on their facilities, locations and buyers’ requirements.
- Processed coffee bean manufacturers
These Vietnam coffee manufacturers can perform either the entire process to the final packed products or only the bean roasting stage, with the input coffee bean ingredient imported from other manufacturers. Vietnam coffee manufacturers can produce various levels of the coffee beans, from light to dark, tailored to customers’ demands. Processed coffee bean manufacturers require a high level of modern technology and are often invested by foreign companies. The number of such manufacturers in Vietnam is not much, concentrated in a few large and long-standing enterprises.
Main locations of Vietnam coffee manufacturers
To make the processing stage more convenient and less costly, Vietnam coffee manufacturers are often built in the coffee growing regions, namely Son La and Dien Bien in the Northwest, Buon Ma Thuot in the Central Highlands and Da Lat.
- The North of Vietnam
In the Northwest of Vietnam, Son La and Dien Bien are famous for their high-quality and stable Arabica coffee output. In fact, among Vietnam coffee manufacturers, they are also one of the first places to plant and produce the coffee trees in Vietnam. Therefore, Vietnam coffee manufacturers are often located here with all the coffee after being harvested will be transferred to these factories for processing. Annually, the coffee output of Son La reaches 30,000 tons with more than 20,000 hectares of coffee, while Dien Bien produces 13,000 tons of coffee per year, making these locations the “King of Arabica coffee in Vietnam”.
- The Central Highlands
When talking about Vietnam coffee manufacturers, it is a must to mention Buon Ma Thuot – a paradise for Robusta coffee in Vietnam. With the advantages of having a fertile basalt red land and favorable climatic conditions, Buon Ma Thuot Robusta coffee beans have long been known for its rich and unique flavor that separates it from coffee beans from other places.
The Cau Dat area in Da Lat is especially famous for its specialty Arabica coffee beans. The cool, foggy climate with the perfect altitude has given Da Lat the conditions to provide its distinguished and charismatic Arabica coffee beans.
- The Central of Vietnam
Another very famous in Vietnam for coffee tree plantation is Khe Sanh in Quang Tri province. More than 100 years ago, the French chose Khe Sanh to form large coffee plantations. Over the years, there are more than 8,000 households working in the coffee growing field in the area.
In general, green coffee processing factories are often constructed around large coffee planning areas to make the processing more convenient. In order to ensure the quality of the coffee beans, they need to be transported to the factory immediately right after being picked. Meanwhile, roasting manufacturers are often located in areas with a lot of spare land, near residential areas, in the suburbs of cities so it can be more convenient for workers to go to work and for the use of electricity and water.
Main products of Vietnam coffee manufacturers
Similar to other major coffee-producing countries, Vietnam coffee manufacturers mostly focus on growing and manufacturing Arabica and Robusta, which not only have high demand worldwide but also suit the geographical conditions for plantation in Vietnam.
Despite accounting for only 7% of Vietnam coffee output and demanding growing conditions, the price of Arabica is higher than that of Robusta, meaning that Vietnam coffee manufacturers can earn great economic value when producing Arabica coffee. In 2020, the price of Arabica coffee is around $3727.5 per MT with 93.3 thousand tons being produced by Vietnam coffee manufacturers.
Overall, Arabica has always been more expensive than Robusta, despite the significant rise of Robusta’s price in MY 2020/21 after two previous falls. Arabica’s price in MY 2020/21 is considered a record high compared to MY 2018/19 because of the low output (Covid-19 impact and climate change) and high demand.
The remaining 93% of the Vietnam coffee production is mostly Robusta, which is Vietnam’s main coffee tree. For markets or wholesale buyers that want to find coffee sources with good quality and reasonable prices, the Vietnam coffee manufacturers’ Robusta is the perfect choice for them. Robusta coffee beans wholesale price usually ranges from 1600 – 4500 USD/MT depending on the quality.
What makes Vietnamese coffee different from others not only lies in its abundant and stable supply all year round but also because of its distinctive flavor of Asian coffee with earthy or smoky profiles. Vietnam coffee manufacturers’ Arabica and Robusta coffee are used as ingredients for many classic drinks around the world such as Espresso and Cappuccino, resulting in high demands all year round from coffee-loving regions such as the Asian or European countries.
Competitive advantages of Vietnam coffee manufacturers
In the eyes of experienced coffee buyers, Vietnam coffee manufacturers are an ideal choice considering many advantages that they obtain.
Abundant, diversified and stable output
The ability to provide large and stable output is one of the main advantages of Vietnam coffee manufacturers. In fact, for three years in a row, Vietnam’s coffee output has been at a stable level and even ranked second in the world. Favorable conditions and manufacturers’ expertise and experience help Vietnam coffee manufacturers to supply large quantities of coffee to coffee traders consistently.
The exemption of domestic transportation costs, import and export taxes, customs fees, has significantly lowered Vietnam coffee manufacturers’ prices. They also mostly sell raw coffee beans in bulk and unprocessed coffee beans. Therefore, the price that Vietnam coffee manufacturers are usually among the cheapest and most competitive on the market.
Diverse quality products
Since Vietnam coffee manufacturers are mainly located near plantations, the delivery time of coffee cherries from coffee plantations to the factories can be minimized. In this way, coffee beans can preserve their original and finest quality. Based on their experience and expertise, Vietnam coffee manufacturers also know how to choose the most suitable preliminary processing methods according to different customer’s requests.
What affects the coffee price of Vietnam coffee manufacturers
There are many uncontrollable factors that can interfere with the production of Vietnam, thereby making the coffee price of Vietnam coffee manufacturers vary accordingly.
Supply from coffee plantations
Not only natural disasters such as the droughts in Vietnam but also the threat of diseases can lower Vietnam coffee manufacturers’ output. For the past two years, Covid-19 has made Vietnam coffee manufacturers unable to work constantly and thereby interrupting the total amount of Arabica and Robusta coffee exports. Lower output and high demand lead to higher prices of input coffee ingredients, making the coffee prices of Vietnam coffee manufacturers rise as a result.
Higher or lower demand
Overcoming the obstacles brought about by the Covid-19, the coffee industry has seen rising demands for coffee since vaccination rates are higher around the world and trade borders are being gradually opened worldwide. However, since most Vietnam coffee manufacturers have just started to reproduce with lower output compared to higher demand, meaning that customers have to bear higher coffee prices than usual.
In order to fight against the pandemic, many workers of the logistic fields are asked to stay home or work from home to follow social distancing orders. This has negatively affected the global supply chain and logistic freight prices. The insufficient number of available containers or lack of custom employees are some of the problems that Vietnam coffee manufacturers must overcome, pushing the logistic freight to double or even triple the prices before Covid-19. Therefore, since manufacturers have to bare additional transportation fees, the coffee prices also increase.
However, even though the prices of Vietnam coffee manufacturers can be affected by external factors, the margin of increased price is insignificant, meaning that the price is still quite stable since factories constantly find ways to optimize production lines, eliminate the unnecessary stages of production, and minimize labor costs.
Where to find Vietnam coffee manufacturers
Compared to the past, it is much simpler to find Vietnam coffee manufacturers since they are now available online as well as offline with public information.
- Internet search
Google search is the fastest and easiest way to find Vietnam coffee manufacturers. Search the phrase “Vietnam coffee manufacturers”, use the traffic analytic tools and most of the reliable Vietnam coffee manufacturers pop up on the first result page. Aside from that key phrase, buyers can search for the similar phrases for more results such as “reputable Vietnam coffee suppliers”, “coffee beans manufacturers in Vietnam”, “Vietnam coffee factory”, etc.
E-commerce platforms have now become useful and effective promotion pages for Vietnam coffee manufacturers. Many of their brand and products’ information and customer’s feedback can be found on major E-commerce pages such as Alibaba or Tridge. The registration of Alibaba is free while Tridge charges users a certain amount of fee.
- Agricultural fairs organized by the Government
To support the coffee industry as well as other agricultural products, the Vietnam government has organized many national agricultural trade fairs every year and encourages Vietnam coffee manufacturers to participate in international fairs. Buyers can go there to find suitable partners and exchange contacts directly. However, the Covid-19 pandemic has resulted in the majority of these fairs being canceled or postponed.
- Intermediary companies
If finding reliable Vietnam coffee manufacturers is too hard, wholesale buyers that are new to the industry can hire intermediary companies or brokers that can help them identify and contact reputable coffee providers.
How to identify reliable and scam Vietnam coffee manufacturers
To sustain a long-term and successful business, finding a reputable partner for a stable and high-quality coffee source is a must for coffee buyers or importers.
Reliable Vietnam coffee manufacturers
- Public information and required licenses
Notice that reliable Vietnam coffee manufacturers always have public contact information such as address, phone number, email address, website (optional), etc. In order to form and run a legitimate coffee business, Vietnam coffee manufacturers are required to complete certain paperwork and licenses such as the Certificate of eligibility for food hygiene and safety, the Certificate of registration of coffee production and the personal information of the business owner. Make sure that the Vietnam coffee manufacturers you are working with have these basic business licenses.
- Certifications and awards
For quality products certified by the national or provincial committees, their certifications are often shown proudly on their websites or when promoting themselves to potential customers. Beside the basic certification of hygiene and safety, some of the most prestigious and reliable awards that famous Vietnam coffee manufacturers have are the “Vietnam High Quality Products” award, the One Commune One Product certification or the “National Brand” award.
- Customer’s feedback
This is another very valid way of determining whether a Vietnam coffee manufacturer can be trusted or not. Most of the customers’ feedback can be seen on the manufacturers’ website or on E-commerce platforms. Buyers can try to contact former customers directly to get more authentic feedback.
The main similarity among reliable Vietnam coffee manufacturers is that they are willing to publicize their information and are always eager to discuss firmly and thoroughly with potential buyers. Buyers can also rely on their certifications, awards and previous customers’ feedback to determine the liability of their partner and have more confidence in the transaction.
Scam Vietnam coffee manufacturers
- Suspiciously low prices
Even though buying products directly from Vietnam coffee manufacturers without any intermediary brokers can be cheaper, it is still very suspicious if the manufacturers offer too low of a price. Therefore, before signing a contract with seemingly good deals, it is always good to double check the Vietnam coffee manufacturers’ information and compare prices from other places.
- Lack of basic information
Public contact information such as address, phone number, email address, website (optional), etc. or required certifications are a must when doing business in any industry, meaning that importers can rely on this to identify scam Vietnam coffee manufacturers.
- Insist on early payment
Wholesale contracts that are worth thousands or millions of dollars require a long time to deal between the two parties on various terms, from the price, location, delivery methods, legal obligations and rights, etc. Scam Vietnam coffee manufacturers would try to urge the buyers to transfer money promptly without thorough discussions, so it is very important to be alert and aware.
In general, suspiciously low prices, lack of basic information and urging on early payment are some of the common features of scam Vietnam coffee manufacturers. It is very important to notice these features from the beginning to avoid wasting time and money.
Top renowned Vietnam coffee manufacturers
For wholesale coffee products, these top 3 Vietnam coffee manufacturers are highly recommended.
Trung Nguyen Legend – Vietnam coffee manufacturers
This famous and notable Vietnam coffee bean manufacturer has been in the market for 20 years and gained its top position in the worldwide coffee industry. Trung Nguyen Legend’s factory is located in the Central Highlands with a total of more than a 152-billion-VND worth of investment and a 1,500 MTs per year capacity.
Whatsapp: +84 855555837
K-Agriculture Factory – Vietnam coffee manufacturers
With 25 years in the coffee fields, K-Agriculture Factory always stays in the top position among the Vietnam coffee bean manufacturers’ rankings. Their 14,000-m2 processing factory in Hung Yen Province with different sections for each different stage of coffee processing has always provided stable output with high quality throughout the years.
Whatsapp: +84855 555 837
Vinacafe – Vietnam coffee manufacturers
Vinacafe factory has a 500-billion-VND worth of investment and is located on an area of nearly 5 hectares with 3,200 MTs of pure instant coffee per year. Their mission is to launch products that can preserve the Vietnamese original style of coffee-drinking.
Whatsapp: +84 855555837