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Brewing Success: Coffee Shipping in Vietnam
10/10/2024
In the heart of southeast Asia, Vietnam is home to breathtaking landscapes and a rich cultural history. Yet it is the nation’s growing coffee industry that has captivated tastebuds around the world.
With strong and bold flavours, the Vietnamese coffee bean has propelled itself into economic importance, as one of the country’s most significant agricultural exports and one of the world’s most sought-after coffee varieties.
Optimizing your supply chain will not only allow you to tackle existing challenges but equip you to confront future hurdles too, empowering you to move agilely in this evolving industry and steam ahead of the competition.
The journey of coffee production begins with discovering the perfect environment for coffee cultivation, where expert farming practices and sustainability measures are employed to ensure only the best coffee cherries are produced. Once the coffee cherries ripen, they undergo harvesting and processing using either the wet or dry method depending on the variety and the desired flavour profile. Beans are then meticulously sorted, graded, and packed according to size and quality, with any defects or lower-quality beans removed to ensure only the best coffee continues along the supply chain.
Following this step, coffee beans move into the international trade market, where exporters and importers manage the logistics of shipping coffee. In its destination country, coffee cargo is prepared for consumers through processes like roasting, grinding and packaging.
Understanding the complexities of the coffee production process is essential. By understanding each stage, you can confidently navigate regulatory requirements, optimize your supply chain, mitigate risks, enhance sustainability, and consistently deliver high-quality products to your customers.
Overview of Vietnam’s Coffee Industry
Vietnam emerged as a key player in the coffee industry in the mid-1980s when the Vietnamese government launched reforms to support integration into the global market. With increased investment and resources into this key cash crop, Vietnam emerged as a global leader in coffee production and is now the second largest exporter of coffee globally.
Coffee is produced in Vietnam by a combination of state-funded and privately run farms.
Overview of Vietnam’s Coffee Industry
Vietnam emerged as a key player in the coffee industry in the mid-1980s when the Vietnamese government launched reforms to support integration into the global market. With increased investment and resources into this key cash crop, Vietnam emerged as a global leader in coffee production and is now the second largest exporter of coffee globally.
Coffee is produced in Vietnam by a combination of state-funded and privately run farms.
Overview of Vietnam’s Coffee Industry
Vietnam emerged as a key player in the coffee industry in the mid-1980s when the Vietnamese government launched reforms to support integration into the global market. With increased investment and resources into this key cash crop, Vietnam emerged as a global leader in coffee production and is now the second largest exporter of coffee globally.
Coffee is produced in Vietnam by a combination of state-funded and privately run farms.
Types of beans
Producing ~30million bags annually, Vietnam specializes in both Robusta and Arabica beans. With Robusta taking centre stage and making up 95% of the country’s coffee production, Vietnam is the number one producer of Robusta coffee.
Growing regions
Coffee production in Vietnam thrives primarily within the provinces of the Central Highlands. Known as the ‘coffee capital’ of Vietnam, the region boasts the favourable climate, high altitudes, and fertile soils needed to cultivate exceptional Robusta coffee beans.
Arabica beans, known for their preference for high altitudes and low temperatures thrive both in the Central Highlands region and in other regions across Vietnam, including the Son La Province and the Lao Cai Province.
Vietnam Coffee Export Challenges
For businesses shipping coffee in Vietnam, there can be some challenges to be aware of, including:
- The impact of water shortages and inconsistent weather patterns due to climate change on coffee bean production.
- A potential perception of low-quality produce due to a high-volume production of raw, unprocessed robusta beans.
- Some logistics complexities when exporting coffee bean cargo due to remote growing regions, Vietnam’s diverse geography and seasonal variability.
However, for coffee shippers, these challenges present an opportunity to stand out.
Vietnam Coffee Export Challenges
For businesses shipping coffee in Vietnam, there can be some challenges to be aware of, including:
- The impact of water shortages and inconsistent weather patterns due to climate change on coffee bean production.
- A potential perception of low-quality produce due to a high-volume production of raw, unprocessed robusta beans.
- Some logistics complexities when exporting coffee bean cargo due to remote growing regions, Vietnam’s diverse geography and seasonal variability.
However, for coffee shippers, these challenges present an opportunity to stand out.
Vietnam Coffee Export Challenges
For businesses shipping coffee in Vietnam, there can be some challenges to be aware of, including:
- The impact of water shortages and inconsistent weather patterns due to climate change on coffee bean production.
- A potential perception of low-quality produce due to a high-volume production of raw, unprocessed robusta beans.
- Some logistics complexities when exporting coffee bean cargo due to remote growing regions, Vietnam’s diverse geography and seasonal variability.
However, for coffee shippers, these challenges present an opportunity to stand out.
By collaborating with producers, implementing rigorous quality control standards, and investing in streamlined shipping processes, you can ensure that Vietnamese coffee reaches the market in peak condition. Contributing both to your bottom line and the reputation of Vietnamese coffee.
You can mitigate the risks associated with climate change by optimizing shipping routes to manage weather-related disruptions and investing in innovative packing solutions to protect goods during transport. Wider efforts to build sustainable practices, long-term partnerships with farmers and trust with consumers will also bolster your resilience in the face of climate change challenges.
Proactively planning for infrastructural difficulties, by investing in transportation networks, contingency plans, storage, and customs clearance solutions as well as real-time tracking, will also help to build seamless and efficient supply chains.
Did you know?
Climate change is expected to have a significant impact on coffee production, with 30-50% of coffee-growing areas projected to become unsuitable by 2050.
It is essential to meet regulatory requirements to ensure the smooth shipment of your coffee cargo.
Taxation
Unlike imported goods, most goods and services exported from Vietnam are not taxed. Export duties, which may range from 0% to 45% based on the free-on-board (FOB) price, are applied to some items like minerals, forest products, and scrap metal.
Licensing
Licensing requirements depend on whether your coffee exports are processed or unprocessed. Processed coffee products may require food hygiene and quality inspections while unprocessed coffee products may require fumigation or quarantine inspections. You should liaise with your import partners to check what inspections are necessary.
Customs
To export coffee from Vietnam, you will need:
- Evidence of your business registration
- Your commercial invoice
- Introduction papers
- Container handover minutes
- Other relevant documents and agreements.
To successfully ship Vietnam coffee beans, you will need to employ a strategic approach. Here are a few tips you could follow:
- Research each step of the coffee production process so that you can make informed decisions about your supply chain.
- Build long-term partnerships with coffee farmers to meet market demand and share best practices.
- Improve the infrastructure of your supply chain through storage, intermodal solutions and logistics technology to promote streamlined, speedy exports.
- Implement rigorous quality control standards to exceed consumer expectations and enhance the positive reputation of Vietnamese coffee.
- Use refrigerated containers to preserve freshness and extend the shelf-life of your cargo.
- Comply with regulatory requirements to avoid delays and ensure seamless coffee exports.
- Integrate sustainable practices to combat climate change challenges to meet consumer demand for ethical and sustainable produce.
- Develop contingency plans to plan for weather-related disruptions.
- Use tracking and monitoring systems to enable real-time visibility and mitigate risks.
- Invest in proper packaging and labelling, such as jute bags and dry bags, to protect and preserve your goods.
- Optimize container stuffing solutions and loading processes to keep your produce safe and intact.
Partnering with a provider who can offer efficient coffee shipping solutions will also help you optimize your logistics and meet consumer demand.
Groundbreaking Shipping Solutions
with MSC
Efficient coffee shipping solutions are essential to successfully navigate the challenges faced by this region, industry, and supply chain. At MSC, we help you to brew success with our tailored, competitive, and reliable solutions. Contact us today to find out more.