Issue link: https://read.dmtmag.com/i/949203
46 STiR coffee and tea / Issue 1, 2018 (February / March) Trung Nguyen, echoed a desire in 2012 to improve production inside the coun- try, including modern processing and better marketing for instant products. The TNI King Coffee corporation re- cently completed a factory in the south- ern province of Binh Duong, adding to a string of such factories aimed at ship- ping more finished products abroad. TNI Corporation also has a foothold in China's online market for instant cof- fee, and aims to start distributing there through a chain of supermarkets. The government is encouraging pro- duction of these factories, but only until A Vietnamese style drip coffee over- looking the rice terraces. Slow drip coffee with condensed milk is still popular among the older generation Vietnamese. 2020, after which they'll stop accepting new proposals. The race is on over the next two years to build modern plants for processing raw coffee into marketable instant products. Achieving a sustainable rate of growth The Vietnamese government has accepted that its high-yield production model is un- sustainable without changes at the farm and supply-chain levels. In 2016, they intro- duced the Sustainable Coffee Plan Till 2020 and Vision to 2030. Working with orga- nizations like Rainforest Alliance and UTZ, their aim is to educate farmers, improve irrigation practices, and restructure farms to grow more arabica beans, all while increas- ing export earnings and ensuring stable production. Their goal is to achieve $3.8-4.2 billion in export revenue, up from a current $3.2 billion. This signals that while sustain- ability is their goal, it will not come at the expense of growth. Climate change will reduce arable land for coffee, but given the government's plan to cap land for coffee production at 600,000 hectares, there will be enough to meet demands. The trick is keeping deforestation to a minimum so as to avoid future water shortages and further erosion. Bright future The industry is growing in every respect, with some lag in arabica expansion. The café sector shows great promise as cafés become preferred hangouts for Vietnamese in both urban and rural settings. Arabica still makes up only a fraction of Vietnam's production, but with government plans to increase arabica production and a growing interest in specialty coffee, demand is set to spike. That demand has been demon- strated by positive reviews and quick sales of products like Starbucks' Reserve Da Lat, along with the rising quantities of arabica sought out by buyers in the US and abroad. More businesses are investing in companies exporting to the Chinese market. This should lead to more growth in the instant market, especially with Vietnam's increased focus on improved processing, and better storytelling to market instant coffees. Unsustainable farming and climate change both pose challenges, but Viet- nam's government is taking the proper steps to ensure sustainable growth and help curb damage to farms. Following the current plans, Vietnam will continue growing as an exporter for years to come, improving its stake through increased attention to sustainability certifications, increased quantities of high-quality ara- bica, and better processing of all coffee products.