Increasing the value of Vietnamese coffee

Opening up Vietnamese coffee brands

The product “High-quality Vietnamese Coffee” has been approved as a national brand product. The content of building the brand of High-quality Vietnamese Coffee is specified in the Framework Project for Developing the National Product of High-quality Vietnamese Coffee issued by the Ministry of Agriculture and Rural Development in Decision 4653/QD-BNN-KHCN dated November 15, 2017.

Domestic coffee market

The general objective of the Project is to develop the coffee industry to produce high-quality, competitive and high-value-added goods on the basis of synchronous application of new varieties, advanced cultivation techniques and post-harvest technology associated with mechanization, reorganization of production, brand building, market development to improve productivity, quality, efficiency of coffee production and business, adapt to climate change, reduce greenhouse gas emissions, and protect the environment.

One of the important goals and contents of this Project is to build a high-quality Vietnamese Coffee brand that is competitive enough in the international market, ensuring that 50% of leading enterprises attach the high-quality Vietnamese coffee brand on product packaging in transactions and sales in the domestic and international markets.

To implement the brand building, the Institute of Policy and Strategy for Agricultural and Rural Development was assigned to develop and register intellectual property protection for the High-Quality Vietnamese Coffee certification mark. Up to now, the Institute has completed all documents (including the Management and Use Regulations, logo, and High-Quality Vietnamese Coffee criteria) and submitted the application for protection of the High-Quality Vietnamese Coffee certification mark for green coffee, roasted coffee, and ground coffee products to the Intellectual Property Office in December 2022.

However, as of September 2023, the Intellectual Property Office has not yet granted a certificate of protection for the High-Quality Vietnamese Coffee certification mark. The main reason for the problem is the lack of a legal corridor and a national name management system. The Ministry of Science and Technology has been assigned to research, amend and supplement legal regulations on the use of national names, but this Ministry has not yet implemented it. Because the High-Quality Vietnamese Coffee certification mark has not been protected, the Project to promote and advertise the High-Quality Vietnamese Coffee brand associated with industry brands and geographical indications submitted by the Ministry of Industry and Trade to the Prime Minister has not yet been approved.

Investing in Brand Building - A Must

According to Mr. Nguyen Quang Hung - Director of Napoli Coffee Import-Export Trading Production Joint Stock Company, the whole country has about 10,000 coffee enterprises. The number of coffee enterprises is very large, but the development of Vietnamese coffee brands to the world market is still limited.

“For many years, I have been to about 100 countries around the world and have seen very few Vietnamese coffee brands. I have seen Trung Nguyen coffee brands on supermarket shelves in some countries. Compared to Thailand and Malaysia, the coverage and market of Vietnamese coffee brands are very limited,” said Mr. Nguyen Quang Hung.

Faced with the above situation, many opinions suggest that Vietnamese coffee businesses need to focus on building brands to increase value as well as enhance the position of Vietnamese coffee products in the international market.

Ms. Do Viet Ha - Trade Attaché of the Vietnam Trade Office in Germany recommends that businesses should focus on building brands associated with stories about the origin of products and the most honest processing methods for consumers. It is necessary to take advantage of economic agreements to bring coffee to the EU market in general and Germany in particular. At the same time, there should be plans to attend international fairs held annually in Germany.

Expressing his opinion on this issue, Mr. Gruber Alexander Lukas - Director of Saigon Professional Roasting Service Joint Stock Company, representative of Alambe' Finest Vietnamese Coffee brand - said that Vietnamese coffee is famous for its large quantity and low price. Therefore, it is necessary to invest in building a brand, creating unique quality, classifying coffee into good, premium, standard grades..., only then will coffee exports have added value.

Vietnam's coffee exports have grown steadily in value in recent years, but mainly in green coffee beans - accounting for more than 90% of output and about 85% of value. Although instant and deeply processed coffees have increased, they only account for about 15% of the country's total coffee export turnover.

Currently, very few businesses create brands for coffee exported to the world. Therefore, investing in building a brand for Vietnamese coffee is a must. When the brand increases, the value of coffee will also be better. In addition, businesses need to join hands with farmers to link the value chain from the producer to the final stage. To develop and increase the value of Vietnamese coffee, it is necessary to focus on investing in production, meeting the requirements of the consumer market, especially the demanding markets.

Regarding this, Mr. Nguyen Hai Nam - Chairman of the Vietnam Coffee - Cocoa Association said that the Association is planning to build a national brand for Vietnam Robusta to contribute to increasing the value of Vietnamese coffee in the international market.

“In Vietnam, Robusta coffee area and output account for 94%, Arabica coffee accounts for only 6%. Currently, the world is dependent on Vietnamese Robusta coffee, so this is a good opportunity for us to build our brand. In the future, world consumers will know that they are using coffee grown by Vietnamese farmers,” said Mr. Do Ha Nam.

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