Vietnam's coffee export prices surged by 52%.

Not only export prices, but domestic coffee prices have also seen a significant increase, currently remaining stable at around 118,600-119,300 VND/kg.

Europe remains Vietnam's largest coffee export market, with the top three being countries within the region.

In the first seven months of 2024, Germany was the largest export market, reaching 121,500 tons, equivalent to $428 million, a decrease of 11.6% in volume but an increase of 42.3% in value compared to the first seven months of 2023. The average export price reached $3,521 per ton, a sharp increase of 61% compared to the same period last year.

Updated based on statistics from the General Department of Customs.

Coffee exports to Italy ranked second, reaching 91,082 tons, equivalent to $296 million, at a price of $3,245 per ton, a decrease of 14.5% in volume, an increase of 26% in value, and a 47.3% increase in price compared to the first seven months of 2023.

Spain was the third largest export market, with a 17.8% increase in volume and an 81% increase in value compared to the first seven months of 2023, reaching 71,734 tons, equivalent to $273 million. The export price reached $3,810 per ton, a 54% increase compared to the same period last year.

Beyond the top 3, many markets have also witnessed remarkable growth, with China being a very active buyer of Vietnamese coffee.

Specifically, in July, Vietnam exported 6,022 tons of coffee to China, equivalent to $26.5 million, an increase of 117% in volume and 148% in value compared to July 2023. Since the beginning of the year, China has spent $130 million to import 32,423 tons of coffee from Vietnam, an increase of 27.2% in volume and 58.3% in value. The average export price reached $4,013 per ton, an increase of 24.5% compared to the same period last year.

Coffee exports have increased sharply recently in markets in general and the EU market in particular, due to coffee businesses focusing on reform, transformation, digitalization, diversifying production, and producing more refined and sophisticated products, as well as developing in a sustainable direction.

In particular, with the commitment to remove tariff barriers thanks to the Vietnam-EU Free Trade Agreement (EVFTA), the opportunity to expand the Vietnamese coffee market in the EU is very promising, with 93% of tariff lines reduced to zero. Processed coffee products are the most benefited. Furthermore, the EU has committed to protecting 39 Vietnamese geographical indications related to coffee.

However, the Import-Export Department ( Ministry of Industry and Trade ) forecasts that Vietnam's coffee exports in the remaining months of the third quarter will decrease due to low supply. The supply of coffee will only increase again in October, when the 2024-2025 coffee harvest begins.

For the 2023/2024 crop year, Vietnam's coffee production is estimated at 1.47 million tons – the lowest level in four years, a 20% decrease compared to the 2022/2023 crop year (statistics from the Ministry of Agriculture and Rural Development). Coffee production for the 2024/2025 crop year is likely to continue to decline due to unfavorable weather conditions. Therefore, excluding the carryover inventory from the previous year, Vietnam will only have approximately 200,000 tons available for export between now and September.

Limited supply could push coffee prices on the world market to continue rising in the near future.

The Ministry of Industry and Trade also forecasts that Vietnam's coffee exports to countries such as Spain, Russia, the United States, Indonesia, the Philippines, the Netherlands, and China will continue to be optimistic in the coming period.

With favorable factors in price, market, and production volume, coffee exports in 2024 are projected to reach a record $5 billion. The coffee industry will contribute to overall economic growth, and coffee will become a valuable export item joining the "club of exports exceeding $5 billion".