VIETNAM September 2020
Domestic Coffee Industry set to gain benefits from EVFTA
Vietnam, the world’s 2nd largest coffee producer, is set to benefit from the implementation of EU-Vietnam Free Trade Agreement (EVFTA) in August which will bring tax incentives for the coffee exporters as the EU market contributes up to 30% of global coffee consumption. Wth EVFTA, Vietnamese coffee enjoy 0% import duty.
Several domestic players have been proactive to grow coffee in line with the strict requirements set by importers. One example is Vinh Hiep Co., Ltd, based in the central highlands province of Gia Lai, which has invested in high-quality growing areas according to the standards set by the US Department of Agriculture (USDA). It has also installed modern coffee production lines from Germany and create a new coffee brand L'amant for the purpose of promoting the export of processed coffee. Investment in modern processing equipment ensures it meets the European high standards of food hygiene, safety and traceability.
EU is now the 2nd largest export market, taking in 42% of Vietnam’s total coffee exports.
Nguyen Trung Kien, Head of the Department of Market Research and Commodities, commented that many domestic enterprises have moved to invest in expanding their production scale of processed coffee. Despite the investments, Vietnamese main exports to the EU still comprise of unroasted and decaffeinated coffee (raw coffee), signifying that there is still much room for further growth.
Domestic coffee producers also need to accelerate the development of Vietnamese coffee brands for the global market.



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