From now until 2020 and 2030, the Ministry of Agriculture and Rural Development (MARD) will not build new coffee processing plants, but will instead focus on investing in technology and equipment upgrades.
According to Mr. Vo Thanh Do, Deputy Director of the Department of Agro-Forestry-Fisheries Processing and Salt Production (MARD), Vietnam currently has 239 industrial-scale coffee processing enterprises.
These facilities process over 1.24 million tons of products annually, including green coffee beans, ground coffee, and instant coffee, accounting for over 96% of the country’s total coffee output.
Mr. Vo Thanh Do noted that Vietnam is one of the world’s leading producers and exporters of robusta coffee, and ranks second globally in the production and export of green coffee beans.
However, the coffee processing industry has long focused mainly on exporting green coffee beans, which yields low added value. In contrast, deep-processed products such as roasted coffee, instant coffee, and blended instant coffee (e.g., “3-in-1,” “2-in-1”) currently account for only 4.1–6% of total coffee output.
Specifically, Vietnam now has:
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160 roasted coffee processing facilities with a capacity of 26,095 tons per year, and
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19 instant coffee plants (pure instant and blended) with a capacity of 75,280 tons per year.
Although deep-processed coffee products have lower output, they bring much higher added value compared to exporting green coffee beans.
Development Strategy to 2020 and 2030
From now until 2020 and 2030, MARD will not construct new coffee processing plants but will:
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invest in modernizing technology and equipment to increase labor productivity and improve product quality, and
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focus research and investment on restructuring the product portfolio toward higher-quality, deep-processed coffee products.
The ministry also emphasizes strengthening the link between coffee growers and processing enterprises to ensure sustainable development.
Specific Targets
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By 2020, deep-processed coffee products (roasted and instant) should account for at least 25% of total green coffee output, including:
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50,000 tons of roasted coffee per year, and
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255,000 tons of various instant coffee products per year, of which pure instant coffee will account for over 20%.
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By 2030, the industry aims to:
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increase roasted coffee output to over 50,000 tons per year, and
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increase instant coffee output to over 350,000 tons per year.
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Roasted coffee will be targeted mainly at the domestic market, while instant coffee will primarily serve export markets, with a portion for domestic consumption.