How To Import Coffee Beans From Vietnam – Vietnam is currently a top destination for foreign coffee purchasers as the second-largest coffee grower in the world.
Many coffee traders prefer to import coffee beans from Vietnam due to its many benefits, including its competitive pricing, high-quality goods, and robust support from the government.
Recognize the conditions of the Vietnamese coffee market before importing coffee beans from Vietnam
For importers, buying coffee from Vietnam provides several benefits according to the market’s setting.
Vietnamese coffee import costs
Due to domestic and global variables, the import price of Vietnamese coffee, excluding shipping costs, has risen steadily during the last three market years.
First, coffee is a price-sensitive commodity. The Covid-19 pandemic has significantly impacted Vietnamese coffee imports, driving up coffee costs.
Second, a significant drop in global coffee production due to the July 2021 frost in Brazil is one of the factors driving up coffee prices globally, with Vietnam no exception.
Third, another factor contributing to the high price of coffee is the increase in demand for coffee imports from Vietnam in Europe, the US, and other countries.
Vietnam produces coffee
Vietnam’s coffee production has marginally dropped over the past three market years due to adverse weather changes and diseases, which have harmed farming. Vietnam continues to export the second-most coffee in the world, nonetheless.
Therefore, it can be said that this output fully satisfies the substantial demand for Vietnamese import coffee beans from importing countries.
Top regions from which importers can import coffee beans from Vietnam
Vietnamese coffee can be imported from the country’s four primary growing regions, including the North West, Dak Lak, Lam Dong, and Quang Tri.
- Northwest: Dien Bien and Son La are the two provinces that produce the most coffee in this area. Because these two provinces have the largest Arabica coffee production areas in the nation and the terrain is comparable to Brazil’s Minas Gerais and Sao Paulo, other countries can import Arabica coffee beans from Vietnam here.
- Daklak: Daklak is regarded as the premier Robusta region in the world. Daklak produces 500,000 tons of Robusta a year from more than 200,000 hectares of coffee at an average elevation of 500–600 meters above sea level and with fertile soil. More than 80 nations have already imported Robusta Dak Lak coffee to improve the flavour of espresso.
- Lam Dong: This province’s coffee is highly distinctive in the Central Highlands’ basalt red soil region. The chilly environment is ideal for producing Arabica at an elevation of more than 1000 meters. Lam Dong pays roughly 40,000 tons of green Arabica beans annually over 13,000 hectares of planted land.
- Quang Tri: Although it has a long history of producing coffee, Quang Tri is not yet well-known abroad. In recent years, Quang Tri has concentrated on the quality of speciality coffees like Khe Sanh speciality coffee and increased production growth.
Import coffee beans from Vietnam are often imported in the following types
Green coffee, including Robusta and Arabica, of which Robusta makes up 90% of production, may be bought from Vietnam in the majority.
Robusta coffee
Robusta coffee is primarily exported from Vietnam. Vietnamese Robusta coffee consistently has a high and stable output due to its ease of cultivation, a suitable climate and weather, and skilled growers.
Arabica coffee
Even though Arabica coffee only makes up 10% of Vietnamese exports, several nations still import this variety because it is particularly well-suited for growing in some areas and costs 5% less than coffee purchased on the international market.
Additionally, Vietnamese Arabica coffee has unique qualities that give it a flavour unmatched by any other coffee.
Advantages of importing Vietnamese coffee beans
Because coffee is a primary agricultural product in Vietnam, importing coffee beans from this country offer importers many advantages.
- Stable output: The coffee-growing regions in Vietnam are located at an altitude of 400–1500 masl, the temperature ranges from 15–26 degrees Celsius, and the amount of rainfall and sunlight is adequate for coffee. These are all perfectly natural circumstances for the cultivation of coffee. Because each region concentrates on growing a single variety of coffee, the agricultural technique is highly specialized. Vietnam is one of the world’s top coffee producers due to its consistent production throughout the years. Vietnam is, therefore, a considerably more convenient country from which to import coffee beans.
- Price parity: The FOB price of Vietnamese coffee traded on the market is typically 5% less than the global average. Germany, the USA, Italy, Russia, and other developed nations make up the bulk of Vietnam’s import markets. Given the distance, logistics costs significantly impact the price of imported coffee beans in Vietnam.
- Tariff incentives: When the EU-Vietnam Free Trade Agreement (EVFTA) is implemented, taxes on unroasted or roasted coffee are reduced from 7% to 11% to 0% and taxes on processed coffee are reduced from 9% to 12 %to 0%. In addition, there are geographical indications of coffee among the 39 geographical indications of Vietnam that the EU has pledged to protect when the EVFTA is implemented. Vietnam has various advantages when importing coffee beans from other nations in addition to this one when it exports coffee.
How to import coffee beans from Vietnam
The importer must take the following steps before importing coffee beans from Vietnam.
In search of Vietnamese coffee exporters
There are numerous ways to import coffee beans from Vietnam in the modern era. Today, the primary source of free search is specifically the Internet. Popular search sources include e-commerce websites like Amazon, Alibaba, and YellowPages.
The intermediate import service is the ideal option for new Vietnamese coffee beans importers because it will assist them in locating a reliable supplier at a competitive price.
Price haggling
Importers must research the cost of Vietnamese coffee beans beforehand to set a fair price before entering into any negotiations. Additionally, importers may provide savings of between 15% and 20% when purchasing coffee in bulk.
Samples inspection
First-time consumers must request samples to verify that the coffee from these providers receives the necessary quality.
Contract
A contract is necessary when dealing with wholesale coffee bean suppliers. Before signing, the contract should be double-checked to ensure that it guarantees that the agreement is in the best interests of both parties’ profits and complies with common law.
Payment
Wholesale coffee bean providers will offer the best payment option based on the number of products. It is advised to split the order value into two payments: before and after getting the product, to ensure that the products meet the predetermined specifications.
Get products and give feedback.
Verify again that the products adhere to the agreed-upon requirements once they have reached the target ports.
If not, contact wholesale coffee bean suppliers to discuss alternatives.
We have provided critical details on “import coffee beans from Vietnam.” Hopefully, it will assist you in choosing the best investing approach. Helena Coffee is prepared to help if you’re having trouble importing coffee beans or want to make things simpler.