Coffee beans after processing at Simexco Dak Lak Company. Photo: Ly Ly/VNS[/caption] Coffee is one of 13 key agricultural export products of Vietnam. In 2022, coffee export value reached 4.06 billion USD, equivalent to 1.78 million tons, up 32% and 13.8% respectively over the same period last year. The Ministry of Agriculture and Rural Development (MARD) expects Vietnam to export about 1.72 million tons of coffee this year, earning 4.2 billion USD. Since taking effect in May 2021, the UKVFTA has helped eliminate tariffs on more than 90% of all goods traded between the UK and Vietnam over a long period of time, bringing significant advantages to Vietnamese exporters in the market. Therefore, experts assess that this is a market with great potential for Vietnamese coffee due to the huge demand for this product. Opportunities for coffee exports to the UK will expand further when the UK becomes a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Mr. Nguyen Canh Cuong, former Commercial Counselor of the Vietnamese Embassy in the UK, said that the UKVFTA has significantly boosted the export of Vietnamese goods to the UK in recent years and coffee is one of the items with high export turnover. Vietnam's coffee exports to the UK reached 90.8 million USD last year, up 61.1% compared to 2021. A report from the General Department of Customs shows that in the 11 months of 2023, the export value of Vietnamese coffee to this market reached more than 90.6 million USD. According to Mr. Cuong, coffee consumption is increasing in the UK and the UK coffee industry is showing a new development trend, with increasing demand for iced coffee, healthy coffee products, coffee for young people or coffee for dieters, creating new opportunities for Vietnamese coffee. “UKVFTA clearly gives Vietnamese coffee a competitive advantage in the UK market compared to countries that do not have a trade agreement with this country, Vietnamese businesses should not miss it. However, to turn the opportunity into reality, businesses must have a marketing strategy and build a brand suitable for the UK market and consumers,” Mr. Cuong emphasized. [caption id="attachment_604121" align="aligncenter" width="640"] 
Coffee processing at a factory in Dak Lak province. Photo: Vu Sinh/VNA[/caption] Challenges from branding Currently, not many Vietnamese coffee products appear in supermarkets in the UK and not many British consumers know about Vietnamese coffee. The reason is that the way businesses build brands is not suitable for coffee culture and British consumer tastes. “Branding is one of Vietnam’s weaknesses abroad. If businesses want to improve their brand recognition in overseas markets, they must have a new way of thinking about branding. They should not even choose Vietnamese brand names because they are difficult to pronounce and remember,” Mr. Cuong added. He suggested that businesses, in addition to hiring branding experts, can recruit Vietnamese people working abroad after graduation to participate in branding for the target market. Vietnam is the world's second largest coffee exporter after Brazil, but Vietnamese coffee currently accounts for only about 17.4% of the UK market, said Hoang Trong Thuy, an agricultural expert. Therefore, he recommended that domestic coffee businesses should invest more in market research and study the UK's coffee culture to create products that suit the preferences of local consumers, thereby increasing the presence and market share of Vietnamese coffee in this market. Thai Nhu Hiep, Vice President of the Vietnam Coffee and Cocoa Association and Chairman of Vinh Hiep Company Limited, owner of the L'amant Cafe brand, said his company mainly exports raw coffee to the European Union (EU) and the UK, and is piloting the export of deeply processed coffee products such as roasted and ground coffee and instant coffee. "The UK coffee market is clearly different from other European countries. In addition, European countries mainly import Arabica coffee, while Vietnam mainly supplies Robusta coffee with more caffeine than Arabica coffee beans. Therefore, businesses wishing to penetrate the UK market must understand coffee culture and consumer tastes to develop suitable products, he said. He also shared that in recent years, businesses have invested in technology and digitalization to improve production and product quality, and they pay more attention to producing coffee according to international sustainable standards to meet the strict requirements of the import market. However, coffee exporters are still facing difficulties in building brands abroad, he added. Experts recommend that the Government support businesses in building brands in target markets and developing foreign markets. According to Mr. Cuong, companies should consider cooperating with coffee roasters in the UK to help process their coffee beans. That way, roasters can propose recipes suitable for the domestic market. This will help Vietnamese coffee exporters shift from exporting raw coffee to processed products, said the former Commercial Counselor of the Vietnamese Embassy in the UK. In addition, the UK is one of the strictest markets in the world and has applied initiatives and regulations related to green production and sustainable development to minimize the impact of climate change, reduce greenhouse gas emissions, limit deforestation and preserve biodiversity. Therefore, businesses need to try to comply with these regulations, Mr. Cuong added./.Ly Ly
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