Friday 08 December 2023

Vietnam’s export earnings up 8 percent on year despite lower volumes

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HANOI, Vietnam – Coffee exports from Vietnam totalled 974,712 in the period from January 1st to August 15th this year, report Vietnam’s Customs. This represents a 16.4 percent drop from the same period last year. However, earning rose to US$2.22 billion, or a 7.9 percent increase year-on-year.

Average export value hit 2,262 USD per tonne, a yearly increase of 30.4 percent. Germany and the United States remained Vietnam’s biggest coffee importers, with 16 percent and 14.3 percent of the market share, respectively.

Meanwhile, the Vietnam Coffee and Cocoa Association (Vicofa) said since the beginning of the 2016-2017 crop, Vietnam has shipped some 1.3 million tonnes of coffee abroad, while 50,000 tonnes remained in stock.

Vietnam’s coffee exports were estimated to drop 20-30 percent in the 2016-2017 crop due to a supply shortage, said Vicofa, adding that the coffee price may go up as the new crop will start from November and the goods is still in demand.

Do Ha Nam, Vice President of Vicofa and Director-General of Intimex Group, said coffee was sold at 44,300-45,100 VND a kilo in central highlands provinces, up 1,000 VND per kilo.

He noted that the price of Robusta coffee at the London stock exchange sharply increased to 2,116 USD per tonne in September and 2,101 USD per tonne in November, up 54 USD and 47 USD respectively, adding the price is expected to reach 2,066 USD per tonne in January 2018, up 33 USD.

Nam also said Brazil needs to import Robusta coffee due to severe losses, while this kind of coffee is in high demand globally, particularly in Asia and emerging markets.

Vietnamese coffee producers started to invest in packaged instant coffee because of its higher value than raw coffee. The country’s instant coffee export expanded to 15 percent of total coffee exports and is hoped to reach 30 percent per year.

However, a recent proposal by the Ministry of Finance to impose packaged instant coffee on some beverages, including processed coffee, might hinder the country from meeting the 30 percent target.


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