Vietnamese Coffee Exporters Optimistic About Growth Despite Possible Tariffs – CoffeeTalk

Vietnamese coffee exporters are optimistic about the sector’s growth outlook, as coffee prices began to recover following the US announcement of a temporary 10% import tariff on goods from Vietnam. Intimex Group, Vietnam’s leading coffee exporter, accounts for approximately 19% of the country’s total coffee export market. In the 2024 season, the company exported over 255,000 tonnes of coffee, generating around $1.5 million. However, Vietnam is not the only country exporting coffee to the US, with nations such as Brazil, Colombia, and Indonesia also producing large quantities of coffee and continuously improving quality. This puts pressure on Vietnam to maintain its competitive edge, particularly in robusta, Vietnam’s main export, especially as these countries currently face lower tariffs than Vietnam.

To cope with US tariff policy, Intimex is accelerating market diversification efforts by seeking opportunities to boost export volumes to Europe, the Middle East, and countries with free trade agreements with Vietnam. The company is also working to improve quality, reduce costs, and build brand recognition to enhance competitiveness. Intimex is also adopting a strategic and pragmatic approach by increasing imports of US food products into Vietnam to help balance the trade relationship.

Vietnam exported 1.45 million tonnes of coffee in the 2023–2024 crop year, bringing in more than $5.4 billion. The US is Vietnam’s fourth-largest coffee export market, after Germany, Italy, and Japan. Trinh Duc Minh, chairman of the Buon Ma Thuot Coffee Association in the Central Highlands province of Dak Lak, emphasizes that while the US may not be the largest market, it is highly important due to its preference for premium coffee, especially processed varieties like roasted and instant coffee.

The coffee industry contributes around $343 billion annually to the American economy, with roughly 75% of Americans drinking coffee regularly. A blanket tariff on all supplying nations could lead to coffee prices in the US rising by at least 50%, or potentially more.

Read More @ VIR