Import Coffee: A Complete Guide to Import Coffee from Vietnam: Due to numerous benefits such as competitive pricing, high-quality products, and strong government support, many coffee traders desire to import coffee from Vietnam.
I. Recognize the conditions of the Vietnamese coffee market before import coffee from Vietnam
There are various benefits to importing coffee from Vietnam according to the market’s setting.
1. Vietnamese coffee import costs.
Due to the effect of domestic and international variables, the import price of Vietnamese coffee, excluding shipping costs, has risen steadily during the last three market years.
- First, coffee is a price-sensitive commodity. The Covid-19 pandemic has had a significant impact on Vietnamese coffee imports, driving up coffee costs.
- Second, a major drop in global coffee production as a result of the July 2021 frost in Brazil is one of the factors driving up coffee prices globally, with Vietnam being no exception.
- Third, another factor contributing to the high price of coffee is the increase in demand for coffee imports from Vietnam in Europe, the US, and other countries.
2. Vietnam produces coffee
Due to the negative effects of weather changes and diseases, which severely impacted farming, Vietnam’s coffee production has declined marginally over the last three market years. Vietnam continues to export the second-most coffee in the world, nonetheless. Therefore, it can be said that this output fully satisfies the substantial demand for Vietnamese coffee imports from importing countries.
3. Top regions from which importers can source coffee from Vietnam
Vietnamese coffee can be imported from the country’s four primary growing regions, including the North West, Dak Lak, Lam Dong, and Quang Tri.
- Northwest: The two provinces that produce the most coffee in this area are Dien Bien and Son La. Because these two provinces have the largest Arabica coffee production areas in the nation and the terrain is comparable to Brazil’s Minas Gerais, and Sao Paulo, other nations can import Arabica coffee from Vietnam here.
- Daklak: Daklak is regarded as the premier Robusta region in the world. Daklak’s more than 200,000 hectares of coffee land produce half a million tons of Robusta annually, with fertile soil and an average elevation of 500–600 meters above sea level. More than 80 nations have already imported Robusta Dak Lak coffee to improve the flavor of espresso.
- Lam Dong: The coffee in this province, which is located in the Central Highlands’ basalt red soil region, is highly distinctive. The chilly environment is ideal for producing Arabica at an elevation of more than 1000 meters. Lam Dong produces roughly 40,000 tons of green Arabica beans annually on its 13,000 hectares of cultivable land.
- Quang Tri: Although it has a long history of producing coffee, Quang Tri is not yet well-known abroad. Quang Tri has concentrated on the quality of specialty coffees like Khe Sanh specialty coffee in recent years and increased production growth.
II. Coffee from Vietnam is often imported in the following types:
Green coffee, including Robusta and Arabica, of which Robusta makes up 90% of production, may be bought from Vietnam in the majority.
1. Robusta coffee
Robusta coffee is primarily exported from Vietnam. Vietnamese Robusta coffee consistently has a high and stable output due to its ease of cultivation, a suitable climate and weather, and skilled growers.
2. Arabica coffee
Even though Arabica coffee only makes up 10% of Vietnamese exports, several nations still import this variety because it is particularly well-suited for growing in some areas and costs 5% less than coffee purchased on the international market. Additionally, Vietnamese Arabica coffee has unique qualities that give it a flavor that is unmatched by any other coffee.
III. Advantages of importing Vietnamese coffee
Vietnam’s dependence on coffee as a major agricultural export makes it advantageous for importers.
- Stable output: The coffee-growing regions in Vietnam are located at an altitude of 400–1500 masl, the temperature ranges from 15–26 degrees Celsius, and the amount of rainfall and sunlight is adequate for coffee. These are all extremely good natural circumstances for the cultivation of coffee. Because each region concentrates on growing a single variety of coffee, the agricultural technique is highly specialized. Vietnam is one of the world’s top coffee-producing nations as a result of its consistently stable coffee output. Vietnam is a considerably more convenient source for coffee imports as a result.
- Affordable cost: Vietnamese coffee is often sold at a FOB price that is 5% less than the global average. Germany, the USA, Italy, Russia, and other developed nations make up the bulk of Vietnam’s import markets. Given the distance, logistics costs have a significant impact on the price of Vietnamese coffee imports.
- Incentives for ta: When the EU-Vietnam Free Trade Agreement (EVFTA) is put into effect, taxes on unroasted or roasted coffee are reduced from 7 to 11 percent to 0 percent, and those on processed coffee are reduced from 9 to 12 percent to 0 percent. In addition, there are geographical indications of coffee among the 39 geographical indications of Vietnam that the EU has pledged to protect when the EVFTA is implemented. Vietnam has various advantages when importing coffee from other nations in addition to this one when it exports coffee.
IV. How to import Vietnamese coffee
The following steps must be taken by the importer before they can import coffee from Vietnam.
In search of Vietnamese coffee exporters
There are numerous ways to import coffee from Vietnam in the modern era. The main source of free search today, in particular, is the Internet. Additionally, popular search sources include e-commerce websites like Amazon, Alibaba, and YellowPages.
The intermediate import service is the ideal option for new Vietnamese coffee importers because it will assist them in locating a reliable supplier at a competitive price.
Importers should research the cost of Vietnamese coffee beforehand to determine a fair price before entering into any negotiations. Additionally, when purchasing coffee in bulk, importers may provide savings of between 15 and 20 percent.
To determine whether the coffee from these vendors truly meets the required quality standards, first-time buyers must request samples.
A contract is necessary when dealing with wholesale coffee bean suppliers. Before signing, the contract should be double-checked to ensure that it guarantees that the agreement is in the best interests of both parties’ profits and complies with common law.
Wholesale coffee bean providers will offer the best payment option based on the number of products. It is advised to split the order value into two payments: before and after getting the product, to ensure that the products meet the predetermined specifications.
Get products and give feedback
- Verify again that the products adhere to the agreed-upon requirements once they have reached the target ports.
- If not, get in touch with wholesale coffee bean suppliers right once to talk about alternatives.
V. Reputable businesses from whom importers can purchase Vietnamese coffee
The top 3 addresses that many importers think are used to import coffee from Vietnam are listed below.
1. Legend of Trung Nguyen
Trung Nguyen Legend is one of the most well-known Vietnamese coffee exporters. The company’s main offerings are Trung Nguyen Soluble Coffee, Trung Nguyen Blended Coffee, Trung Nguyen Roasted Coffee Beans, Legend Coffee, Weasel Coffee, and Trung Nguyen Coffee Shop.
More than 60 countries around the world have received this company’s Vietnamese coffee products, including the US, Canada, Russia, England, Germany, Japan, China, and ASEAN.
2. Helena., JSC – Helena Coffee Vietnam
Helena Coffee Processing and Export in Vietnam. Helena JSC is a top Robusta and Arabica coffee supplier, processor, and exporter in Vietnam. Furthermore, we are considered as one of the pioneers of success in the export of pepper and coffee to countries all across the country, including South-East Asia, China, and the rest of the globe.