Vietnam ranks as the second-largest coffee producer globally, just behind Brazil, and holds the title of the world’s leading robusta-growing country. This gives Vietnam a critical role in global coffee production and a notable influence on international markets.
While the country is known for its large-scale output, what about the quality of its beans?
Historically, Vietnamese coffee has been associated with lower quality, but this perception is gradually changing. The rise in arabica production in several regions is generating increasing interest among coffee experts and professionals.
To gain a deeper understanding of Vietnam’s coffee-producing landscape, I spoke with industry experts who shared their insights. Keep reading to discover what they revealed about the country’s evolving coffee industry.
The Evolution of Vietnam’s Coffee-Producing Legacy
Like many leading coffee-producing regions around the world, Vietnam’s introduction to coffee came through colonization—specifically, by the French. Tony Le Ngoc Thuong, senior coffee trader and assistant CEO at Vinacafe, recounts how this colonial history laid the foundation for Vietnam’s rise as a coffee powerhouse.
He explains, “French missionaries are believed to have introduced the coffee plant to Vietnam in the 1850s. However, it wasn’t until 1888 that French settlers, such as Borel Leconte in Ha Nam and Rossi and Delfante in Daklak, established the first major coffee farms.”
From these early beginnings, Vietnam’s coffee-producing industry expanded rapidly throughout the 20th century. Tony highlights that between 1920 and 1925, plantations spread across the Central Highlands, and by 1945, coffee farms spanned over 10,700 hectares—doubling to 20,000 hectares by 1975.
Midhun Pachayil, Vice President of Coffee for Vietnam at Olam, notes that the Vietnam War significantly disrupted coffee production, and it wasn’t until after the war, in 1975, that the industry was nationalized. The economic reforms of 1986, which restored private land ownership, spurred an unprecedented surge in coffee production, solidifying Vietnam’s status as a global leader in the coffee market.
Today, as Tony points out, Vietnam’s coffee farms cover more than 600,000 hectares, mainly in the mountainous regions, yielding over 30 million 60kg bags of green coffee annually. This marks Vietnam as one of the world’s most productive coffee-producing nations.
Vietnam’s Coffee-Producing Regions: Balancing Quantity and Quality
Currently, around 95% of Vietnam’s coffee production is dedicated to robusta, with the remaining 5% focused on arabica. The Central Highlands region dominates robusta production, accounting for about 80% of the country’s output. This area’s climate and elevation are ideal for cultivating the resilient robusta plant, which thrives on large-scale farms designed for mass production.
Historically, Vietnam’s coffee-producing approach has prioritized quantity over quality, with robusta often sold to buyers who roast it for instant coffee production. This focus on volume has earned Vietnam a reputation for delivering coffee at scale but not necessarily high quality—a perception that has hindered the recognition of some producers aiming to grow premium robusta and arabica varieties.
Arabica farming in Vietnam is less widespread and is primarily managed by smallholders. Arabica farms, located in both the north and south, have harvest seasons from November to January, coinciding with Central American harvests. The most commonly grown arabica variety is Catimor, prized for its resilience and high yield but not for its flavor profile.
Recently, however, some Vietnamese coffee producers have begun shifting away from mass-producing Catimor and are planting higher-quality arabica varieties like Bourbon and Typica. This trend highlights a growing interest in improving the reputation of Vietnam’s coffee-producing industry and offering a more diverse and premium selection of beans to the global market.
Vietnam’s Coffee-Producing Heartlands: The Central Highlands and Arabica Regions
As the core of Vietnam’s coffee-producing landscape, the Central Highlands are renowned for their robusta cultivation. Tony Le Ngoc Thuong explains, “Vietnam’s coffee production is concentrated in the Central Highlands, particularly in the five provinces of Dak Lak, Gia Lai, Dak Nong, Lam Dong, and Kontum.”
Midhun Pachayil adds that several factors contribute to making this region perfect for robusta farming, including altitudes ranging from 300 to 500 meters above sea level. He describes the warm tropical climate, shaped by the South Asian monsoon, as having distinct rainy and dry seasons. These conditions—along with hot weather, high humidity, and mild sunlight—create an optimal environment for growing robusta, with temperatures consistently between 24°C and 26°C.
While the Central Highlands dominate Vietnam’s robusta production, arabica coffee is cultivated across a more scattered geography. Arabica thrives in regions where altitudes are higher and temperatures cooler, creating favorable conditions for this more delicate coffee variety.
Tony highlights that arabica is grown in areas like Da Lat, Dien Bien, Nghe An, Son La, and Quang Tri, where altitudes range from 1,000 to 1,400 meters above sea level. Midhun further explains that arabica prefers mountainous terrain, cooler temperatures (20°C to 22°C), and annual rainfall between 1,300 mm and 1,900 mm.
Each arabica-producing region offers its own distinct flavor profile, with Da Lat standing out as a “paradise” for arabica due to its high altitude and consistently cool climate. This region, in particular, is gaining recognition for producing high-quality arabica beans, signaling Vietnam’s potential for excellence in both robusta and arabica production.
Innovations in Vietnam’s Coffee-Producing Methods: From Volume to Quality
Traditionally, Vietnam’s coffee-producing practices have prioritized one key factor: volume. Most Vietnamese coffee is hand-picked and wet-processed, with less emphasis on methods like natural, honey, or experimental processing. However, there is a growing movement toward enhancing production techniques, particularly in the post-harvest phase, to improve overall coffee quality.
Tony Le Ngoc Thuong explains that in the past, coffee was dried as quickly as possible, often compromising quality. Farmers would then sell their crop to local buyers at fixed prices, immediately reinvesting their earnings into expanding farm capacity. This cycle has long kept the focus on quantity over quality.
Midhun Pachayil highlights that many Vietnamese coffee farms practice intercropping, using two distinct methods. The first is a synchronized farming system, where coffee trees are grown alongside other crops on the same plot. The second is a segregated farming system, where different crops are cultivated in separate plots.
Intercropping has brought financial benefits to farmers, with those participating in Olam’s Rainforest Alliance program in Dak Lak now earning additional income from multiple crops—an increase from 24% to 100% of farmers. Farmers are trained to grow non-coffee crops such as pepper, durian, avocado, and passion fruit, which helps them become more resilient to fluctuating coffee prices and changing climate conditions.
Meanwhile, Tony notes a shift in mindset among producers, with increasing awareness of the need to focus on quality. Farmers are exploring methods such as harvesting fully ripe cherries, adopting natural and honey processing, and experimenting with fermentation to enhance coffee quality and market value.
These evolving practices suggest that Vietnam’s coffee-producing industry is moving toward a more balanced focus on both volume and quality, positioning the country for future success in the global market.
Vietnam’s Coffee-Producing Influence on Global Prices: A Key Player in the C Market
As the world’s second-largest coffee producer and the top robusta-growing nation, Vietnam plays a pivotal role in shaping the global coffee market. With such a significant share, fluctuations in the Vietnamese coffee-producing sector have a direct impact on the C price, influencing coffee producers worldwide.
Supply disruptions in Vietnam, whether due to adverse weather or logistical issues, can drive prices higher. Conversely, a strong harvest or favorable weather conditions can cause prices to drop. A recent example occurred during the Covid-19 lockdown in Ho Chi Minh City, a major export hub. The restricted coffee exports led to a reduction in global supply, causing robusta prices to rise.
Despite this influence, Tony Le Ngoc Thuong points out that higher prices don’t necessarily mean increased profits for Vietnamese coffee farmers. He explains, “Vietnam’s coffee market is largely driven by foreign direct investment and speculative funds. Unfortunately, the Vietnamese coffee ‘brand’ is not as globally recognized, which makes it harder to compete with other origins.”
While Vietnam’s focus on mass production and lower prices has somewhat damaged its reputation, there is a noticeable shift towards improving quality. Producers in certain regions are beginning to experiment with higher-value arabica varieties and innovative processing methods. Although it remains to be seen if Vietnam will emerge as a renowned arabica-producing country, this evolution signals a positive change in its coffee-producing future.