STiR coffee and tea magazine

STiR coffee and tea 21 There was a time when smaller South American countries like Ecuador led the world in soluble coffee processing, and much of Vietnam's robusta was shipped there. However, the country's eco-industrial developments, stable political environment, and competitive labor costs now entice many foreign companies to open state-of-the-art soluble processing facilities there. In an email to STiR, Do Ha Phuong (Jason), deputy general director of Intimex Coffee, wrote, "Vietnam is the biggest sup- plier of robusta, which is mainly used for soluble production. Setting up a factory in Vietnam helps with stock volume and quality control, which lowers the cost of logistics. It's also close to potential consuming markets, such as China, Korea, Japan, and the Philippines, and Vietnam's domestic instant coffee mar- ket is rising." Intimex began processing spray-dried instant coffee in Viet- nam in 2019. With the onset of the pandemic, the domestic mar- ket for affordable and convenient instant coffee increased rap- idly. According to Phuong, 200,000 metric tons (mts) of green beans (primarily Vietnamese robusta and other imported beans) produced around 85,000 mts of pure soluble coffee powder in 2024. A portion of pure soluble powder is exported while the rest goes into making end-products like the popular 3-in-1 and 2-in-1 instant coffees for local consumption and export. Innovations in soluble coffee processing that make instant coffee drinks more enjoyable are also driving demand higher. Freeze-drying, significantly improves instant coffee's quality and taste by retaining more of the bean's original structure. Nestlé operates six factories in Vietnam and has invested hundreds of millions of dollars in the country. OEM (original equipment manufacturer) and several other companies have made it their key hub for freeze-dried coffee manufacturing, fur- ther adding to Vietnam's appeal. A report from Mordor Intelligence lists instant coffee as Vietnam's most significant product type. Businesses around the world now source premium freeze-dried coffee from Vietnam for wholesale distribution. Vietnam Meets EUDR with Aplomb The Vietnamese government reacted proactively to the an- nouncement of the European Union's deforestation regulations (EUDR). The Minister of Agriculture organized a meeting be- tween key coffee sector players, including representatives from farmers' associations and the European Union policy advocates, to fully understand how to meet the new requirements. "The Minister of Agriculture asked us, 'how can we solve this problem?' and urged us not to resist the challenge but look at it as an opportunity," said Huy. "It's a chance for Vietnam to become a leader in the global coffee industry. If we understand the regulations and are fast to prepare for them, then it's good for our supply chain, too." With that 'anything is possible' mentality, Vietnam is the leading EUDR-compliant coffee-producing country with one of the most digitized and traceable coffee sectors. Not Afraid to Pivot The willingness of Vietnam's coffee sector to seek advice from outside players, accurately assess situations, and then make con- cise changes, generates success. Understanding the importance of portfolio diversification and the ability to pivot quickly has taken Vietnam to the top.

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