Vietnamese coffee industry transformation is an opportunity as well as a challenge. The market is always volatile and changes according to general trends, so all industries that want to keep up with the flow must always be aware of the importance of transformation. One of the inevitable transformation trends is digital transformation.

Digital transformation of the Vietnamese coffee industry in response to the new context

To enhance the export potential of the whole industry, Vietnam needs to take advantage of the strengths of technology and digital transformation to access it effectively and quickly. Thereby providing products that meet customer needs in the changing and volatile market trend.

The pandemic has disrupted global supply chains. Importers tend to go directly to coffee roasters to access the supply. On the way to exploiting the larger markets of Northern Europe, Vietnamese coffee enterprises need to improve the processing process associated with the circular economy to meet EU standards.

In addition, new-generation free trade agreements (FTAs) such as CPTPP, EVFTA, and RCEP are also opening up great opportunities to expand the market for Vietnamese coffee. And of course, not all businesses can meet the requirements of these agreements.

To promote the development of the coffee industry, the Ministry of Industry and Trade has cooperated with Alibaba and Amazon to support Vietnamese businesses in putting agricultural products (including coffee) on leading e-commerce platforms. There have been Vietnamese businesses that have successfully developed sales and exported through e-commerce platforms Alibaba and Amazon.

Not only exploiting the market through Alibaba, and Amazon … but many businesses have also successfully taken advantage of the social networking platforms Facebook, Instagram, and TikTok to do business. And, of course, the revenue has improved. This is the right step in improving the consumption of the coffee industry.

Therefore, the Vietnamese coffee industry will have to change traditional production and business methods to digital platforms to catch up with global development.

The Vietnamese coffee industry needs to transform to seize opportunities

The Vietnamese coffee industry has an excellent opportunity for growth. The UK-Vietnam Free Trade Agreement (UKVFTA) supports the Vietnamese coffee industry to expand its market share in the UK.

According to the commitment of UKVFTA, after 6 years from the entry into force of the UKVFTA agreement, the UK will eliminate import tax on 99.2% of tariff lines, equivalent to 99.7% of Vietnam’s export turnover. Experts say Vietnamese businesses need to quickly take advantage of the opportunities brought by UKVFTA and pay attention to the tastes of British consumers. Because the British do not drink strong coffee like Vietnamese black coffee. The finished coffee has a strong smell and taste that will be difficult to sell in the UK market.

In addition, British people have a habit of reading information on the packaging very carefully to determine if the product has allergenic ingredients, how it should be prepared, and meets the ESG criteria (environmental, social & governance) or not. Distributors will welcome products that are both suitable for consumer tastes and have beautiful packaging.

To satisfy customers in the UK market, Vietnamese coffee needs a change in taste, packaging, and production process to create output to meet export,…

Here are a few numbers that show the bright future of the Vietnamese coffee industry in the distant UK:

– In the first eight months of 2022, Vietnam’s coffee exports to the UK reached 34.68 thousand tons, worth 70.68 million USD, up 57.9% in volume and 84.2% in value over the same period. 2021

– In August 2022, Vietnam’s coffee exports to the UK reached 2.23 thousand tons, worth 4.75 million USD, up 21.6% in volume and 18% in value compared to July 2022. , but compared to August 2021, down 35% in volume and 27.8% in value.

– In August 2022, the average export price of Vietnamese coffee to the UK market reached US$2,125/ton, down 3% compared to July 2022, but up 11.1% compared to August 2021.

– In the first 6 months of 2022, the UK mainly imported unroasted coffee, without decaffeinated, accounting for 77.01%, growth rate of 38.4% in volume and 93.8% in value. over the same period in 2021, reaching 104.67 thousand tons, worth 400.4 million USD

=> We have the right to expect the Vietnamese coffee industry to set a new record turnover.

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