Vietnam’s coffee exporters are having one of their best years. Their exports are through the roof, all due to a perfect combination of global price volatility, domestic climate luck, and smart, tactical tariffing. Located in Mekong River delta, Vietnam often affects the global coffee price. It’s good timing, too, as the country now enjoys the highest level of coffee exports in its history, having increased sales from last year by 40 percent in the first nine months of 2023 alone.
With large scale production, the Vietnamese coffee industry has rapidly gained attention for holding a front position in the international coffee trade. Exports have skyrocketed as a result of a perfect storm of factors. Cumulatively, rising global coffee prices, the growing effects of climate change on coffee crop yields, and favorable tariff policies have contributed to significantly increased profitability for coffee growers.
On June 12, 2024, an image captured in Pleiku, Gia Lai province, illustrates a worker pouring coffee beans into a moisture tester, highlighting the meticulous quality control processes that support the country’s export efforts. This level of care is especially crucial as Vietnamese coffee producers contend with a dynamic and cut-throat global market.
These factors combined with the current market conditions have created a favorable environment for Vietnam’s coffee industry. Recent global volatility has further affected the supply chain, driving coffee prices up. Because of this, consumers everywhere are now facing much higher prices for their go-to drinks. Back home in Vietnam, local producers are reaping a windfall. They are riding high off the back of the favorable tariffs that have added pressure to coffee production this year.
Vietnam’s coffee producers are having extraordinary success in the export sector. Increased prices and favorable tariff structures based on high domestic demand have placed these growers in a fortuitous market position. They are not just sitting back and collecting, they are actively increasing their revenue. Simultaneously, they are deepening Vietnam’s role as a disruptive force in the global coffee market.
The landscape is not without challenges. Climate remains a key driver down on the farm, placing further stress on production, while underscoring the need for more sustainable production practices. Climate change is already affecting weather patterns, and Vietnamese coffee growers will need to adjust to maintain reliable production and exports in the future.