Coffee production in Vietnam
Encyclopedia
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
since the early 20th century. First introduced by the French
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
in 1857, the Vietnamese coffee industry developed through the plantation
Plantation
A plantation is a long artificially established forest, farm or estate, where crops are grown for sale, often in distant markets rather than for local on-site consumption...
system, becoming a major economic force in the country. After an interruption during and immediately following the Vietnam War
Vietnam War
The Vietnam War was a Cold War-era military conflict that occurred in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. This war followed the First Indochina War and was fought between North Vietnam, supported by its communist allies, and the government of...
, production rose once again after Đổi mới economic reforms, reaching 900,000 tons per year in 2000. In 2009, Reuters
Reuters
Reuters is a news agency headquartered in New York City. Until 2008 the Reuters news agency formed part of a British independent company, Reuters Group plc, which was also a provider of financial market data...
reported Vietnamese coffee exports at "an estimated 1.13 million tonnes" for the previous year, stating that coffee was second only to rice in value of agricultural products exported from Vietnam.
History
Coffee was introduced to VietnamVietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
in 1857 by the French
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
and slowly grew as producer of coffee in Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
. The height of coffee production occurred in the early 20th century as small scale production shifted towards plantations. The first instant coffee
Instant coffee
Instant coffee, also called soluble coffee and coffee powder, is a beverage derived from brewed coffee beans. Instant coffee is commercially prepared by either freeze-drying or spray drying, after which it can be rehydrated...
plant, Coronel Coffee Plant
Vinacafe
Vinacafe is a Vietnam-based company involved in the production, processing and distribution of coffee and instant cereal mix...
, was established in Biên Hòa
Bien Hoa
Biên Hòa is a city in Dong Nai province, Vietnam, about east of Ho Chi Minh City , to which Bien Hoa is linked by Vietnam Highway 1.- Demographics :In 1989 the estimated population was over 300,000. In 2005, the population wss 541,495...
, Đồng Nai Province in 1969, with a production capacity of 80 tons per year.
The Vietnam War
Vietnam War
The Vietnam War was a Cold War-era military conflict that occurred in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. This war followed the First Indochina War and was fought between North Vietnam, supported by its communist allies, and the government of...
disrupted production of coffee in the Buôn Ma Thuột
Buon Ma Thuot
Buôn Ma Thuột or sometimes Buon Ma Thuat or Ban Mê Thuột, is the capital city of Dak Lak Province, in the Central Highlands of Vietnam. Its population is approximately 300,000...
region, the plateau on which the industry was centered. Although seldom involved in conflict, the area was a crossroads between North and South and was largely depopulated. After the North Vietnam
North Vietnam
The Democratic Republic of Vietnam , was a communist state that ruled the northern half of Vietnam from 1954 until 1976 following the Geneva Conference and laid claim to all of Vietnam from 1945 to 1954 during the First Indochina War, during which they controlled pockets of territory throughout...
ese victory the industry, like most agriculture, was collectivized
Collective farming
Collective farming and communal farming are types of agricultural production in which the holdings of several farmers are run as a joint enterprise...
, limiting private enterprise and resulting in low production.
Following Đổi mới reforms in 1986, privately-owned enterprise was once again permitted, resulting in a surge of growth in the industry. Cooperation between growers, producers and government resulted in branding finished coffees and exporting products for retail. It was during this time that many new companies involved in coffee production were established, including Đắk Lắk-based Trung Nguyên
Trung Nguyên
Trung Nguyên is a Vietnam-based business group involved in the production, processing and distribution of coffee. Trung Nguyên is a major domestic coffee brand within Vietnam, and exports its products to 25 countries, including major Asian markets such as Japan and Singapore.It is most noted for...
in 1996 and Highlands Coffee
Highlands Coffee
Highlands Coffee is a Vietnamese coffee shop chain and producer and distributor of coffee products, established in Hanoi by Vietnamese American David Thai in 1998. The founding of the Highlands Coffee company marked the first time an Overseas Vietnamese was able to register a private company within...
in 1998. Both of these continued on to establish major brands distributed through a widespread network of coffee shops
Coffeehouse
A coffeehouse or coffee shop is an establishment which primarily serves prepared coffee or other hot beverages. It shares some of the characteristics of a bar, and some of the characteristics of a restaurant, but it is different from a cafeteria. As the name suggests, coffeehouses focus on...
. By the late 1990s, Vietnam had become the world's #2 coffee producer after Brazil, but production was largely focused on poor-quality Robusta beans—considered inferior to Arabica
Coffea arabica
Coffea arabica is a species of Coffea originally indigenous to the mountains of Yemen in the Arabian Peninsula, hence its name, and also from the southwestern highlands of Ethiopia and southeastern Sudan. It is also known as the "coffee shrub of Arabia", "mountain coffee" or "arabica coffee"...
due to their bitterness—for export as a commodity. Recent government initiatives have sought to improve the quality of coffee exports, including more widespread planting of Arabica beans, the development of mixed-bean coffees, and specialty coffee such as kopi luwak
Kopi Luwak
Kopi luwak , or civet coffee, is one of the world's most expensive and low-production varieties of coffee. It is made from the beans of coffee berries which have been eaten by the Asian Palm Civet and other related civets, then passed through its digestive tract. A civet eats the berries for their...
.
By 2000, coffee production had grown to 900,000 tons per year. Price decreases, however, led annual production to drop to around 600,000 tons/year in 2003. In 2009, Reuters
Reuters
Reuters is a news agency headquartered in New York City. Until 2008 the Reuters news agency formed part of a British independent company, Reuters Group plc, which was also a provider of financial market data...
reported Vietnamese coffee exports at "an estimated 1.13 million tonnes" for the previous year, stating that coffee was second only to rice in value of agro-products exported from Vietnam.
Production
Most coffee producers are private and state owned, such as Trung Nguyen Coffee Company Ltd.Trung Nguyên
Trung Nguyên is a Vietnam-based business group involved in the production, processing and distribution of coffee. Trung Nguyên is a major domestic coffee brand within Vietnam, and exports its products to 25 countries, including major Asian markets such as Japan and Singapore.It is most noted for...
, Hung Phat Company Ltd., Tam Chau Tea and Coffee Company Ltd., Viet Pacific Co. Ltd. known as Vietcoffee, and Vinacafe
Vinacafe
Vinacafe is a Vietnam-based company involved in the production, processing and distribution of coffee and instant cereal mix...
(Vietnam National Coffee Corporation). Highlands Coffee
Highlands Coffee
Highlands Coffee is a Vietnamese coffee shop chain and producer and distributor of coffee products, established in Hanoi by Vietnamese American David Thai in 1998. The founding of the Highlands Coffee company marked the first time an Overseas Vietnamese was able to register a private company within...
, a privately owned producer, was the first private company in Vietnam ever registered to an Overseas Vietnamese. A number of international players, such as Nestlé
Nestlé
Nestlé S.A. is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri...
, have been established in Vietnam following economic liberalization in the 1990s.
Vietnam is the second largest producer after Brazil, accounting for 14.3 per cent of the world market share. The quality of the beans, however, has typically limited their marketability. Robusta coffee accounts for 97 per cent of Vietnam's total output, with 1.17 million tonnes exported in 2009, a value of USD
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
1.7 billion. Arabica
Coffea arabica
Coffea arabica is a species of Coffea originally indigenous to the mountains of Yemen in the Arabian Peninsula, hence its name, and also from the southwestern highlands of Ethiopia and southeastern Sudan. It is also known as the "coffee shrub of Arabia", "mountain coffee" or "arabica coffee"...
production is expected to rise owing to the expansion of growing areas. Other types of coffee grown in Vietnam include Chari
Chari
Chari may refer to:* Chari, South India* C. T. K. Chari, Indian-born professor of Philosophy* V. V. Chari, Indian-born professor of Economics* One of two regions/prefectures in Chad:** Chari-Baguirmi...
(Excelsa) and Catimor.
| Region | Altitude | Harvest season | Blend nature |
|---|---|---|---|
| Central Highlands - DakLak, Gia Lai, Kontum, Lam Dong, Buon Me Thuot | 500-700m | November-April | aromatic |
| Southeast - Dong Nai, Ba Ria–Vung tau, Binh Phuoc | |||
| Central Coastal | |||
Style
Vietnamese (Buôn Ma ThuộtBuon Ma Thuot
Buôn Ma Thuột or sometimes Buon Ma Thuat or Ban Mê Thuột, is the capital city of Dak Lak Province, in the Central Highlands of Vietnam. Its population is approximately 300,000...
region) style coffee has characteristics that distinguish it from other coffees and brewing methods:
- The growing regions of the Buôn Ma Thuột have been classified into micro-climates by European scientists contracted by private industry. In these different regions, several varieties of coffee are grown, including ArabicaCoffea arabicaCoffea arabica is a species of Coffea originally indigenous to the mountains of Yemen in the Arabian Peninsula, hence its name, and also from the southwestern highlands of Ethiopia and southeastern Sudan. It is also known as the "coffee shrub of Arabia", "mountain coffee" or "arabica coffee"...
, Robusta, Chari (Excelsa), Catimor, and some indigenous varieties of Arabica such as the Arabica SE. Vietnamese coffee producers blend multiple varieties of beans for different flavor characteristics and balance. - Typically the coffee is prepared in single servings in single-cup filter/brewers known as phin. Generally the coffee is served tableside while it is still brewing. The use of sweetened condensed milk rather than fresh milk was first due to its availability and easier storage in a tropical climate. The condensed milk serves to sweeten the coffee as well. Long practice has led to this being the taste preference in the Vietnamese community.
- The coffee may be brewed onto ice for cafe da, or when had with condensed milk cafe sua da.