Vietnam earns close to $4.2b in 2023 from coffee export

Vietnam earns close to $4.2b in 2023 from coffee export

January 4-2024

Coffee Geography Magazine

Vietnam as the second top coffee exporter in the world has achieved earning $4.18 billion USD in 2023 with 1.61 million tons of coffee exported worldwide, down 9.6% in volume but up 3.1% in Y-Y value. 

The average coffee export price in 2023 was US$2,834 per ton, an increase of 14.1% compared with the previous year. Vietnam’s coffee industry benefited from a hike in Robusta coffee price. The price of Robusta in the world market hit a 28-year peak at the end of 2023 due to low inventories and sale restrictions. 

The price of Robusta coffee is forecast to continue increasing in 2024, even reaching a new peak due to concerns about supply shortages.

vietnam map

Coffee production has been a major source of income for Vietnam since the early 20th century. First introduced by the French in 1857, the Vietnamese coffee industry developed through the plantation system, becoming a major economic force in the country. After an interruption during and immediately following the Vietnam War, production rose once again after Đổi mới economic reforms, making coffee second only to rice in value of agricultural products exported from Vietnam. 

It is believed that the coffee plant was first introduced to Vietnam in 1857 by French missionaries, but the first coffee plantations were only set up in 1888 at the Ninh Bình and Quảng Bình provinces of Tonkin. Early coffee production was mainly of the Arabica variety. 

The height of coffee production occurred in the early 20th century as small-scale production increasingly shifted towards commercial plantations. In the 1920s, the French decided to open coffee production zones in parts of the Central Highlands, mainly in Đắk Lắk Province. An estimated total of 1,500 tons of coffee was produced for export each year by 1930; that amount increased to 2,000 tons per year by 1940.

According to the Vietnam Coffee-Cocoa Association (Vicofa), Vietnam’s coffee production for the 2023-2024 crop will decline to 1.6-1.7 million tons, lower than 1.78 million tons in 2022-2023. This year, Vietnam is focusing on solutions to promote the sustainable development of the coffee industry, including ensuring origin traceability and meeting the European Union deforestation regulation (EUDR).