Vinh Hiep Company Limited tops the list of the largest coffee exporters in Vietnam in Q1 2022.
According to data from the General Department of Customs, Vietnam’s coffee exports in March 2022 were 211.0 thousand tons, equivalent to a turnover of 474.4 million USD, up 51.4% in volume and 47.4% in turnover over February 2022. Compared to March 2021, this number was an increase of 28.7% in volume and 55.5% in turnover.
In the first 3 months of 2022, Vietnam’s coffee exports reached 581.7 thousand tons, with a turnover of 1.29 billion USD, up 28.3% in volume and 60.2% in turnover over the same period in 2021.
In March 2022, Vietnam’s coffee exports to some markets decreased compared to March 2021. For example, exports to Russia were down by 49.68% in turnover; to Egypt by 32.16%; to Indonesia by 62.49%, etc. Exports to some members of the EU increased compared to March 2021. Exports to Belgium were up 571.0% in turnover, Spain by 120.3%, Romania by 136.5%, the Netherlands by 991.6%, etc.
In the first quarter of 2022, Vietnam’s coffee exports to main exporting markets like the EU, the US, Japan, and the UK increased sharply over the same period in 2021. Exports to other countries also experience positive growth. For example, coffee exports to the Philippines were up 39.2% in turnover compared to the same period in 2021. Exports to Australia increased by 86.1% in turnover; to India by 45.9%; to Egypt by 61.6%; to Israel by 39.7%, etc.
Vietnam’s coffee exports have yet to be affected by the tension of the Russia – Ukraine conflict. Despite being Vietnam’s seventh-largest coffee exporting market, the proportion of exports to the Russian market accounts for only 4.1% of Vietnam’s total coffee export turnover.
Since the beginning of April, the global coffee market has been under pressure. Coffee prices have undergone fluctuations. That has impacted Vietnam’s coffee market. Vietnam's coffee prices slightly decreased to about 40,700 – 41,300 VND/kg.
A series of unfavorable information is putting pressure on world coffee prices. According to coffee exporters, robusta coffee prices will continue to be under downward pressure in the coming time.
Indonesia and Brazil will soon start a new coffee crop, and the living standards of Europeans due to inflation have begun to adjust in terms of spending. Therefore, the price of coffee will not increase but rather keep at the current level or decrease further.
Currently, coffee consumption in traditional markets such as Russia, the Middle East, the US, and Europe has decreased sharply. Therefore, domestic coffee businesses are turning to the Asian market. With the factors of population density, effective pandemic control, stable political situation, etc., Asia will be a potential market for Vietnamese coffee enterprises to increase exports.
In 2021, the world continued to be heavily affected by the COVID-19 pandemic. However, the demand for coffee still tended to increase. Therefore, most countries with large market capacity increased coffee imports for domestic consumption and the coffee processing industry, except for the UK, which decreased by 6.2% compared to 2020.
For Vietnam's coffee industry, coffee production and export activities have been active again since the pandemic has been put under control. The Agency of Foreign Trade forecasts that in the second quarter of 2022, Vietnam's coffee exports will continue to increase thanks to abundant supply and free trade agreements, creating a competitive advantage for Vietnamese coffee.
Diversifying markets will still be the way to help Vietnam expand opportunities for agricultural products. Both Asian and European countries are fond of Vietnamese coffee. One of the reasons coffee exports have prospered is because Vietnam's Robusta coffee is highly appreciated by customers and is competitive compared to other major suppliers such as Brazil, India, South America, Colombia, etc.
European countries such as Germany, Belgium, and Italy are very fond of Vietnamese coffee. In the first 3 months of the year, these 3 markets imported more than 181,854 tons of coffee from Vietnam, worth 392 million USD.
The EU market is currently the largest coffee-consuming market in the world. They are also Vietnam's biggest coffee-consuming market, accounting for more than 16% of the market share.
In particular, with the commitment to remove tariff barriers from the EVFTA Free Trade Agreement, the opportunity to expand the Vietnamese coffee market here is very potential. The product that benefits the most is processed coffee. In addition, the EU has committed to protecting 39 geographical indications of Vietnam related to coffee.
Source: The Ministry of Industry and Trade
Compiled by VietnamCredit