Issue link: https://read.dmtmag.com/i/1532529
18 STiR coffee and tea | 2025 Issue 1 Spring (Mar/Apr/May) A By Diana Jendoubi s one of the most dynamic coffee sectors in the world, Vietnam un- derstands the importance of portfolio diversification. Its players are pragmatic problem solvers whose motto is 'anything is possible.' Whether navigating the troubled waters of the European Union's deforesta- tion regulations, perfecting 'Fine Robusta,' or dominating the instant coffee market, Vietnam is tackling all aspects of the coffee value chain and ticking all the boxes. Meteoric Rise: From 2 to 30 Million Bags of Coffee Facing a failing collectivist agricultural sector in 1986, the Vietnamese Com- munist Party enacted a series of economic reforms called Doi Moi (meaning innovation or renovation) and made a 180° pivot. Certain commodities like coffee were opened to foreign investment, and experts from East Germany and other communist countries were brought in to help improve coffee production. In 1993, Vietnam produced about 2 million bags of coffee. That year, Brazil suffered from debilitating frosts that severely affected their robusta yields, causing prices to skyrocket. Suddenly, coffee farmers in Vietnam began earning much more money and became hyper-focused on increasing produc- tion volumes. Vietnamese Coffee: A Lesson in Portfolio Diversification Le Dinh Tu from Minudo Farm-Care in Daklak, Vietnam, sustainably grows and processes arabica and robusta beans to make a variety of coffee products, from high-quality instant coffee to cascara tea and premium small batch Fine Robusta. Photo courtesy Diana Jendoubi According to Mordor Intelligence, Vietnam produced 30.5 million bags of robusta in 2021/2022. In 2023, its market size was $472.6 million and is projected to grow to $706.1 million by 2028 with a compound annual growth rate (CAGR) of 8.13%. Graph courtesy of Mordor Intelligence Coffee Market, Production Volume of Robusta Coffee, in Million Bags, Vietnam, 2018-2022 Copyright ©2023 Mordor Inteligence TM 2018/19 2019/20 2020/21 2021/22 29.3 30.2 28.1 30.5