(Tiểu luận) report practices of international trade topic export the vietnamese coffee

TON DUC THANG UNIVERSITY
FACULTY OF BUSINESS ADMINISTRATION
INTERNATIONAL BUSINESS

REPORT
PRACTICES OF INTERNATIONAL TRADE
Topic: Export the Vietnamese coffee

Lecturer: Nguyen Thi Tuong Vy
Group: Sunflowers, Tuesday and Thursday

Ho Chi Minh City, 8th November 2020

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LIST OF GROUP MEMBERS
Full name
1

Nguyen Thi Hong Ngoc

Student
ID
719D0105

2

Huynh Muoi Luy

719D0082

Introduction
Conclusion
Chapter 2
Synthesis the source

100%

3

Nguyen Thi Thuy Vy

519C0108

Chapter 1
Chapter 2

95%

4

Tran Ha My Hien

719D0049

Chapter 2

Chapter 3

95%

5

Hinh Van Ty

719D0221

Chapter 2
Chapter 3

95%

6

Hoa Hong Phuc

719C0249

Chapter 1
Chapter 2

95%

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Duty

Evaluation

Chapter 1
Chapter 2
Chapter 3
Synthesis the report

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Signature


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Table of Contents
INTRODUCTION .............................................................................................................1
Chapter 1: Overview of the coffee and export activities in Vietnam ............................3
1.1
Overview of Vietnam’s coffee market and production – export activities of
enterprises .......................................................................................................................3
1.1.1 The formation and development of the coffee industry ...............................3
1.1.2 Overview of the situation Vietnam coffee export .........................................3
1.1.3 Overview of coffee consumption in foreign markets....................................4
1.2

Theoretical about the export ..............................................................................6

Chapter 2: The actual situation and the process of exporting coffee from
Vietnam to other countries: Analysis and Evaluation...................................................8
2.1
The situation of coffee Exports Vietnam...........................................................8
2.1.1 The situation of coffee production and export in Vietnam in recent years.
2.1.2 The main types of Vietnam coffee ................................................................10
2.1.3 Price export coffee .........................................................................................10
2.2

The general process of exporting goods ..........................................................13

2.3

Some documents in the coffee export trade contract .....................................14

2.4
Government policies .........................................................................................15
2.4.1 Free trade agreements ..................................................................................15
2.4.2 Impacts of the state to support farmers/export businesses .......................16
2.5
SWOT .................................................................................................................17
2.5.1 Strengths ........................................................................................................17
2.5.2 Weakness ........................................................................................................17
2.5.3 Opportunities .................................................................................................17
2.5.4 Threats............................................................................................................18
Chapter 3: Solutions to boots Vietnam’s coffee to overseas ........................................19
Conclusion ........................................................................................................................20
Conferences ......................................................................................................................21

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INTRODUCTION
Until now, Vietnam is one of the famous countries for farming and agriculture - forestry,
some popular products are rice, tea, rubber, ... and coffee. When it comes to coffee,
Vietnam is internationally rated as the second country in terms of exports, this shows that
coffee is an industry that has, is and will have a lot of potential and opportunities to
develop.
Except for those who are drunk with coffee, we can say coffee is an indispensable drink
of the day. Each person has a different habit and taste of coffee, some people like the

bitter taste but others love the sweet taste, some people use coffee when they work tired
but also people use it during appointments with a partner or friend. And just like that,
coffee accidentally holds a fixed position in the hearts of Vietnamese people, even
foreign tourists.
Joe Vinson has researched that coffee is an indirect product so that people can partially
reduce the risk of cancer because coffee contains antioxidants. Besides, coffee also has
many other benefits such as keeping the body awake, burning excess body fat, and
strengthening muscles. With such positive impacts along with reasonable prices,
abundant human resources and natural conditions in Vietnam, coffee is increasingly
known by many foreign businesses and we also willing to cooperate with them.
In general, coffee is one of the popular and highly attractive beverages in Vietnam in
particular and other countries in the world, it is demonstrated through competition for
different purposes from businesses. FDI enterprises to compete for a market share of
coffee companies in the world as well as coffee chains on foreign markets are increasing.
What makes coffee so attractive? Are you curious about its birth as well as other useful
information in export activities from Vietnam to foreign countries? If yes, hopefully, this
report will bring you lots of useful information.

Research purposes:
-

Present information you need to know about coffee export markets from Vietnam
to foreign countries.
Show the general process of exporting.
List the positive and negative aspects of the Vietnamese coffee market and take
out solutions.

Research subjects: Vietnamese coffee exports.
Research scope:
-

Theoretically: the influencing factors and the evaluation criteria for coffee export
activities in Vietnam, thereby giving solutions to promote the development of
coffee products on the market for exporters.
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Research methodology: using relevant knowledge about list, analysis, statistics,
synthesis, and comparison to evaluate coffee export activities in Vietnam.
Applying SWOT for in-depth analysis and giving optimal solutions to boost coffee
export to foreign markets

Structure of the report:
-

Chapter 1: Overview of coffee and export activities in Vietnam.
Chapter 2: Current situation and the process of Vietnam's coffee export to other
countries: Analysis and evaluation.
Chapter 3: Solutions to boost Vietnam's coffee exports to foreign countries.

Photo by: brandsvietnam.com

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Chapter 1: Overview of the coffee and export activities in Vietnam
1.1 Overview of Vietnam’s coffee market and production – export
activities of enterprises
1.1.1 The formation and development of the coffee industry
Where is coffee come from? The first coffee beans were brought into
Vietnam by the French, the first coffee variety was introduced in our country in
1857 through several French missionary priests. The first is experimentally
planted in Catholic churches in some northern provinces and then the coffee tree
is planted and then expanded to Thanh Hoa, Nghe An, Ha Tinh ... and then
spread to the central provinces. such as Quang Tri, Quang Binh. In the period
after the war, the coffee tea gardens here continue to be maintained. Therefore,
this area has a very high distribution of coffee and tea trees.
Finally, new coffee trees gradually developed into the South Central
Highlands and Southeast and people began to realize that the Central Highlands
was the most suitable place to grow coffee trees. From there, gradually
popularized in Egypt and Yemen, and many countries around the world. Until
now, when it comes to the euphoric drink, coffee is a must-have product.
Coffee trees are thriving and the area to grow them is growing. The
Central Highlands has become the region with the largest Robusta coffee
growing area in our country both in size and reputation, nowhere in Vietnam has
a famous domestic and international coffee, and at the same time with a famous

region bearing many legends like Buon Ma Thuot coffee. After the liberation
period of the country's coffee area was about 20 thousand hectares, thanks to the
international capital support, coffee trees were gradually focused, until 1980, the
cultivated area continued to increase and export with thousands of tons. The
original plan was built in 1980 and set a target for Vietnam's coffee industry to
have about 180 thousand hectares with an output of 200 thousand tons. After
that, this plan was revised many times and the highest number stopped at 350
thousand hectares with an output of 450 thousand tons (VICOFA, 2002).
Currently, Vietnam's coffee plays an important role in the strategy of boosting
Vietnam's agricultural exports and the main export market is the EU market.

1.1.2 Overview of the situation Vietnam coffee export
According to information sources, at present Vietnam has become the
second country in the world producing and exporting the coffee industry. In
general, Vietnam's coffee market accounts for nearly 5.6 billion USD, but in
2020, the COVID-19 epidemic has impacted the market price of coffee to
decrease to 4.8 billion USD, this makes the production - export situation more
difficult. However, it is expected that this price will increase again in the coming
years with the expected figure to reach more than 8 billion USD about five years
later.

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Regarding production: According to the Import and Export Department, in
2020, due to the impact of many problems from nature, epidemics will lead to
many problems in coffee production. Specifically, in the Central Highlands
region, coffee production tends to decrease due to severe water shortages, in
addition to the impact of drought, thousands of cultivated areas are wilted and
burned. Hence, the Vietnam Coffee - Cocoa Association believes that this year's
production is expected to decrease by 15%.
Regarding exports: in 2019 - 2020, Vietnamese coffee is generally less
competitive than other countries and thus leads to a large reserve due to low
exports. Depending on the extent of the damage, the farmers have to increase
measures to help the coffee tree grow as well as restore the growing area, also,
many people switch to intercropping other crops. due to low coffee export prices
this year. According to AsemconnectVietnam, within the first eight months of
2020, Vietnam has exported about over 1.15 million tons with a turnover of $
1.97 billion.
Regarding varieties: the most popular coffee in foreign markets is still
Robusta coffee but in volume and value it has decreased significantly compared
to the previous years, according to the latest calculation from the General
Department of Vietnam Customs, in the first 8 months of 2020, Robusta coffee
exports reached 983 thousand tons with a value of US $ 1.46 billion, generally
down 2.4% in volume and 4.6% in value compared to the same period in 2019.
Regarding coffee export prices: price data is still being updated daily but
according to the most specific data that the General Department of Vietnam
Customs said in the first 7 months of 2020, the country exported more than 1, 5
million tons of coffee and earned 1.79 billion USD with an average price of
1,699.9 USD / ton. Compared to the same period last year, exports decreased
1.1% in volume, 1.5% in turnover and 0.4% in price. This is also an unavoidable
thing because in 2020 the world will be affected by many difficulties from
natural conditions to serious epidemics.

1.1.3 Overview of coffee consumption in foreign markets
As you know that Robusta coffee of Vietnam is the product that is
exported and consumed the most in the foreign market, However, this is also
uneven, for example, increases in countries such as Japan, Korea, Belgium, ...
and decreases in countries such as the Thailand, America, ,...
Regarding the consumer market, also due to the epidemic COVID - 19,
most people turn to enjoy at home instead of buying from stores and
supermarkets. In particular, Robusta coffee processed in the form of instant
coffee is the most preferred product by foreign consumers, especially the
Russians, this country has per capita consumption per capita after only two
countries. British and American. However, recent information shows that the
people of this country are tending to consume more powdered and bean roasted
coffee.

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a/ Factors that foreign consumers are interested in when buying coffee:
- Clean diet: it can be said that nowadays, consumers prefer clean coffee
over blended coffee like before, they prefer to go to local pure coffee roasters. These
stores are growing day by day and these companies claim that they only sell 100%
clean coffee without any impurities. Part of the reason is to hit on current consumers'
fear of dirt and the rest is that they are more interested in pure, organic coffee, ...
this is considered an opportunity for businesses to participate. into this market.

- Fast, convenient: Recently the CocaCola market just entered the
Georgia Coffee Max instant coffee market, the price of a can of coffee is equal to a
can of iced coffee on the sidewalk and they think that the goal is only for people
Consumers like us can change habits and pay attention to faster and more convenient
products. From this perspective, Vietnam can do research to develop these models
and types of products in the near future in order to meet customer needs.

Illustration picture by: Dalgona Coffee – Schaumkaffee
Source: />b) The tastes of consumers:
For Vietnamese exported coffee, instant coffee is a favorite Russian
product, its average consumption is second only to the US and UK. However in
recently, due to the factors of a eat clean and minimal style that they tend to switch
to powdered and roasted coffee.
In addition, foreigners also love to enjoy Passiona coffee, this is a product
that women often love due to its low caffeine content, collagen supplements, antiaging substances along with some herbs from the East and also reduce the sugar.
Businesses also added that drinking this coffee will help maintain a perfect skin, this
type of coffee has been developed and researched for 9 years and now in Vietnam
appears this coffee. It is only priced at about 44.000 VND from Trung Nguyen
brand.
In the past coffee was favored by men because they needed alertness to
work, but recent analysis illustrates that both women and children love its for its

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because of organic products has the effect of losing weight as well as maintaining
physique. If women often drink coffee for a specific health reason, young generation
prefer coffees that are blended with other ingredients such as matcha, cream cheese,
and new innovations like dalgona coffee or fruit coffee.

1.2 Theoretical about the export
a/ Definition of export:
Export is a term for goods that are domestically produced and sold in
foreign markets, a word commonly encountered in various economic sectors,
especially international trade.
We have learned about net exports in Macroeconomics, so we can
understand that if net exports are positive - exports are greater than imports, there
is a trade surplus in the country.

b/ The roles of exports to the economy:
For the global economy: when it comes to the word "global", especially
with import and export activities, it means that this is not simply a single issue
between buyers and sellers in the same country as well, but it includes This
includes the vast scale of global trade Exporting can be said to be the first
activity in international trade with the main goal of consuming the products that
people (businesses) produce and making an important contribution in the process
of developing a country's economy in a strong and sustainable manner.
For the economy of each country: one thing we can not be denied that
exports are one of the main activities that drive economic growth and
development, or in other words that export is one of the ways that a country is
made. rich. Some of the roles of export activities we can mention are: expanding
consumption markets; promote specialization, processing - production chain,
economic restructuring; pioneering expensive leads to many other industries with
development opportunities, and most importantly, building good relationships

between foreign-investedå enterprises.

c/ The roles of exports for firms:
If we successfully export our goods, our brand will surely be known by
friends from all over the world and will give our business many opportunities to
grow. In addition to the expansion of products of businesses in consumer
markets, export of goods will help them have more foreign currency, increase
their creativity in work to innovate and improve products every day. Although
this activity will be competitive, they will be able to learn a lot of expertise, how
to create products with the most resources and cost savings and sometimes even
scalable for cooperation on both sides is beneficial.

d/ The theory of comparative advantage by David Ricardo:
Comparative advantage is a concept mentioned by Ricardo in his work The
Principle of Political Economy and Taxation, which shows the ability of a
product to be produced at a lower cost than to produce the product. other. It can

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be said that this is the basic foundation of international trade, David Ricardo has
successfully inherited and developed Adam Smith's absolute theory.
A rule has been drawn by him in the issue of import and export: countries
should focus on specialization on the production - export of goods when they

have a comparative advantage and import goods when the country There is no
comparative advantage. By doing this, the total global production of products
will always tend to increase.

e/ Some other theoretical models in international trade:
Heckscher - Ohlin model: This model predicts that a country will
export the products for which it has a resource strength and vice versa. On the
basis of the difference between the resource factors, it is identified and assumed
to be the structure of international trade. However, there are still many studies
showing conflicting results.
Attractive model: this model is mainly inclined towards quantitative
analysis, it predicts that trade exchange depends on geographical distance and the
size of the economy between two countries. Many extensions of this model refer
to many other factors such as income level, diplomatic relations, and trade
policies of each country.

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Chapter 2: The actual situation and the process of exporting coffee
from Vietnam to other countries: Analysis and Evaluation
2.1 The situation of coffee Exports Vietnam
2.1.1 The situation of coffee production and export in Vietnam in recent

years.
a/ Regarding production:
According to data from Vietnambiz newspaper about Vietnam's coffee
market in the first 3 months of 2020, the production situation in the Central
Highlands has had weather difficulties that reduce crop yields. According to
information from the Ministry of Industry and Trade, since the beginning of the
dry season, water shortages occurred in many localities, prolonged heat and heat
resulted in the exhaustion of water sources from streams and lakes. In addition to
natural conditions, the continuous decrease in coffee prices also causes the coffee
area of cultivation and production processing to decrease. Because there are not
many changes compared to the end of last year, in order to improve economic
efficiency, some businesses in Dong Nai have invested in coffee deep processing
plants to boost exports as well as increase the profits.
Followed by the export situation continued to update in the second quarter of
2020, according to the import-export department, as the supply was limited, coffee
prices in some domestic markets increased from the beginning of May. The
influence of Covid-19 makes both supply and demand decreased and some factors
impact from nature such as: drought, flood and severe water shortage, leading to a
sharp decrease in production output.

b/ Regarding export:
Table 2.1.1 Statistics of Vietnamese coffee exports
Year
Volume (tons)
Value (USD)

2015
2016
2017
2018

2019
1.341.839
1.781.642
1.442.077
1.878.278
1.653.265
2.674.238.962 3.335.507.673 3.244.314.619 3.537.535.962
2.862.300.000
Designed by Sunflowers Team
We have synthesized ourselves based on information from websites as well
as articles, table 2.1.1 reveals that these are general data on the coffee production
situation of our country in recent years. Generally in the period 2015-2019, there
are uneven changes and have alternating increasing and decreasing between years.
Specifically in 2015, due to weather factors such as severe drought when the coffee
trees are growing, rain comes early at harvest and although the business had
replanting programs but the process takes place still quite slow, this is a quite
challenging year for the coffee industry. However, in 2016 the situation seemed to
be better when the cultivated land area increased by 0.3%, although the impact of
drought in the Central Highlands earlier this year caused coffee yield to decrease
by 0.4% but overall the whole year still increased 1% compared to the previous

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year, the experts said that in 2016, Vietnam started to sign a few free trade
agreements making the export of coffee, especially coffee products processing to
foreign countries has become easier and more beneficial. Until 2017, coffee
exports decreased slightly due to a decrease in domestic supply, the main reason
was also affected by the climate but in 2018, both the volume and value of exports
increased although many businesses had a crop transformation. According to the
Institute of Agricultural Science for Southern Vietnam, the EU is the most
consuming market for our country's coffee, accounting for 40% of the total
volume, 38% of the total coffee export turnover of the country, and Southeast Asia
areas is the second largest consumption market of our country with 13% of the
total coffee export volume and turnover of our country. The situation of Vietnam's
coffee exports in 2019 decreased sharply, mainly due to the export price and
especially the focus on the export price of Robusta coffee - coffee accounts for
about 74% of the total coffee export volume of the country. According to
information from Vietnambiz, accumulated coffee exports in 2019 decreased
15.2% in volume, and 22.4% in value compared to the previous year.
The coffee market report for 2020 is still being updated and there is no
explicit datasheet. According to statistics in the first three months of 2020, the
volume and value of coffee exports reached 474 thousand tons and 801 million
USD, compared to the same period last year, this figure decreased by 3% in volume
and 5.6% in value. In the Polish market, the cumulative export value of Vietnam
coffee reached 12.31 million USD, up 77.3% while in the UK market it plummeted
by 50.8% and reached 13.55 million USD.
The data shows 4 overall factors for Vietnam's coffee exports: volume, value,
average export price and 5 largest coffee consumption markets in Vietnam in the
first 5 months of 2020. The special feature of this chart is that it shows us the data
as well as the variatio: between the same time period in previous years.
Figure 2.1.1 The Coffee Export Situation In Vietnam 5T
(the first 5 months) of 2020

Source: ICO, General Department of Customs, Vietdata complied
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If the first quarter had an uneven increase or decrease, in the second quarter,
in general, the coffee export volume and value increased. Specifically, Robusta
coffee volume increased 4.9% and value increased 1.9%, so this period coffee
reached 694.6 thousand tons with a value of $ 1,029 billion. Regarding the type of
export, Robusta is still the most popular type of foreign enterprises in Germany,
Thailand, Australia and also less popular in the US, UK and France. It is also due
to COVID-19 that global trade supply chains are affected, making it difficult to
transport between importing and exporting goods between Vietnam and overseas.
2.1.2 The main types of Vietnam coffee
Our country is an extremely diverse country in terms of types of coffee, not
only that, each type of coffee is sometimes selected and divided by businesses
based on the income level of each customer group. However, at present, in
Vietnam, we only export 3 main types: Robusta, Arabica, and Excelsa, of which
Robusta is the most popular type of coffee by many importers.
Robusta is the second most important coffee grown in Vietnam, it can be said
that it accounts for about 74% of the country's total coffee exports. Although
accounting for the majority of that, in general, in the first 8 months of 2020,
Robusta coffee exports still decrease. Specifically, according to the latest statistics
from the General Department of Customs, Robusta coffee exports reached 983
thousand tons with a value of 1.46 billion USD, down 2.4% in volume and 4.6%

in value compared to 2019. Table 2.1.2 also shows that Arabica and Excelsa only
export in small quantities, this proves that maybe by 2020 all goods are at a
disadvantage but have the opportunity such as Robusta coffee, there is still a lot of
hope in the years to come.
Table 2.1.2 Types of coffee exports in August and the first
8 months of 2020

Source: General Department of Customs
2.1.3 Price export coffee

a/ Coffee price export in recent years:
Vietnam coffee export prices always fluctuate. According to the original
plan, it was estimated in 2020, the value of the quantity increased to 2.2%, and the
value increased by 1.3% with a total of 941 thousand tons at the price of 1.59 billion
USD. However, most recently, we have data on coffee export prices in the first 8

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months of 2020: generally the country exported over 1.15 million tons of coffee
with a turnover of 1.97 billion USD, the average export price is 1,711 USD/ton.
Thus, it decreased by over 2% in both volume and turnover but increased slightly
by 0.1% in price over the same period last year. Besides, countries such as Germany,
America, Italy, Spain, Japan are markets with an import volume of over 50,000 tons

of coffee in our country.
Due to the influence of world markets, Vietnam's coffee prices have been
continuously reduced. Although Vietnam is a coffee exporter, in fact, Vietnam is a
country with low export prices. Under the impact of price fluctuations, the coffee
industry in Vietnam is facing many challenges as well as the balance between supply
and demand.
Table 2.1.3 shows the details of export prices by coffee varieties. Price of
Robusta coffee of Vietnam in July 2019 was 188,857 USD / ton, down 15.2% in
volume and 22.7% in value. In which the average export price of coffee in the first
seven months of 2020 is 1,516 USD / ton, down 9% compared to July 2019. As for
the export price of Arabica coffee, it is pegged at 5,091 USD / ton, down 1.9%
compared to February 2019 and down 2.8% from January 2019.
Table 2.1.3 Export coffee prices of Vietnam in July and
the first 7 months of 2019
Kind

Robusta
Arabica
Processes
Coffee
Excelsa
Coffee

July 2019

Compared
to July 2019

Seven 2019

Compared to
seven 2019

Quantity
(Ton)

Cost
(Thousand
USD)

Quantity
(Ton)

Cost
(Thousand
USD)

Quantity
(Ton)

Cost
(Thousand
USD)

Export
Price

Quantity
(Ton)

Cost
(Thousand
USD)

Export
Price

124.262
2.534

188.857
5.091

5.3
153.4

-6.6
-55.0

1.035.678
46.838

1.570.076
94.026

1.516
2.007

4.7
-19.7

-10.2
-30.0

-14.2
-12.8

2.490

13.391

-14.8

-11.4

22.040

112.517

5.105

3.9

-1.9

-5.6

442

744

-30.3

-38.0

4.674

7.471

1.598

29.7

-8.4

-16.4

(Source: Import and Export Department)
The state implementation of social isolation during the complicated
COVID-19 epidemic, although this does not affect coffee production much, experts
still say it will affect prices and export of Vietnam. They forecast coffee prices will
return to normal and are on the momentum of gradual recovery. Besides, in the crop
year 2019 - 2020, the price is estimated to be about 169.34 million bags, so the price
increase will be a direct impact on both supply and demand.

b/ Some competitors
With the special attraction and great potential of the coffee industry, there
are many businesses investing in the industry today. Not only foreign businesses but
also domestic enterprises are increasingly trying to bring their brands to the world,
they also cooperate with each other for mutual benefits but competitiveness

accounts for a lot because everyone wants to take all the benefits. Most businesses

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compete on production output, human resources, and invest to apply modern
machines to the production - processing chain.
Most recently, the Ministry of Industry and Trade has approved and
published a list of 268 reputable exporters in 2019, including 11 coffee exporters
(see table 2.1.3). These are all brands with extensive experience and cooperation
with many countries, we can see the highest top list is Intimex Joint Stock Company
and the last one is Minh Tien coffee Import-Export Company Limited. Of course,
every business has different pros and cons, we can not but admit that the competition
helps the economy develop strongly.
Table 2.1.3 The reputable coffee exporters of Vietnam in 2019
No
Company Name
1 Intimex Joint Stock Company

4

Mascopex Joint Stock Company
Daklak September 2nd Import-Export Company
Limited

Tin Nghia Corporation Joint Stock Company

5
6

Phuc Sinh Joint Stock Company
Vinh Hiep Co. Ltd

7

Intimex Dak Nong Joint Stock Company

2
3

8 Dakman Vietnam Co. Ltd
9 Agrexport Joint Stock Company
10 Hoa Trang Import-Export Company Limited

Selected Unit
Ho Chi Minh City Department of Industry and
Trade
Vietnam Coffee - Cocoa Association (VICOFA)
Department of Industry and Trade of Dak Lak
province
Department of Industry and Trade of Dong Nai
province
Vietnam Coffee - Cocoa Association (VICOFA)
Vietnam Coffee - Cocoa Association (VICOFA)
and Department of Industry and Trade of Gia Lai

province
Department of Industry and Trade of Dak Nong
province
Vietnam Coffee - Cocoa Association (VICOFA)
Vietnam Coffee - Cocoa Association (VICOFA)
Department of Industry and Trade of Gia Lai
province
Vietnam Coffee - Cocoa Association (VICOFA)

11 Minh Tien coffee Import-Export Company
Limited
Photo by: Sunflowers team

Source: www.moit.gov.vn
Besides the enterprises recognized as "the most prestigious export in
2019", we also have businesses that still have a position in the hearts of many foreign
traders/businesses, we can mention a few companies as:
Trung Nguyen Coffee Group: carries in itself the quality brand name with
the top export quantity in Vietnam and is refined by the quintessential substances
from the land of Buon Ma Thuot, with the sunny and windy highland terrain
favorable for growing coffee. The coffee is covered with long-established and
pristine coffee beans, bringing outstanding quality with bold Vietnamese flavor.
Trung Nguyen has a unique flavor formula combining the uniqueness and the

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oriental know-how that makes it impossible for customers to confuse it with another
brand. In order to assert its position in the international arena, so far Trung Nguyen
has exported its products to more than 80 countries, G7 instant coffee is the one that
importers love the most, in addition, they are also selected "try before you trust" is
a diplomatic ambassador to connect Vietnamese culture with the world.
Vinacafe Bien Hoa Joint Stock Company: With the slogan "Vietnam
Coffee, for Vietnamese", their businesses have researched and produced to develop
and create their own brand. As a result, they have been successful in both instant
and roasted coffee. It is a breakthrough in the Vietnamese coffee market to create
their own character and many people also love this brand. Vinacafe is also
considered to be the oldest growing enterprise in the history of Vietnam's coffee
industry, so far they have had a favorable first step and have a strong foothold thanks
to the delicious taste and satisfying demand of domestic and foreign consumers.
An Thai Coffee Group: This is also one of the "competitors" of
Vietnamese coffee exporters, with more than 20 years of experience in the field of
production and development based on the slogan "Green Development - Strong
growth “. An Thai Coffee received a series of certificates and awards for outstanding
coffee quality, absolute assurance and received the trust of domestic and foreign
customers. An Thai coffee products have been well received by other countries and
present in many international markets and affirmed their position in the international
areas.
2.2 The general process of exporting goods
Except for businesses with long-term experience, a thorough information search is
essential for new businesses. In the import and export stage, there are many means of
transport such as land, sea, air, ... However, goods going by sea are more common, so
here are 8 steps to Export of goods by sea which we would like to discuss with you:

Figure 2.2 The general export (designed by Sunflowers team)
Source: www.container-transportation.com/quy-trinh-lam-hang-xuat
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For commercial coffee export contracts, the difficulty is not what the step-by-step
process what needs to be done because experienced firms can understand easily.
However, the thing to notice we want to mention is the quarantine issue and quarantine
requirements of importing partners. In fact, there have been a lot of disputes occurred
because of violation of the quality clause on goods of plant and animal origin such as
coffee, wood, and even the Phytosanitary/Veterinary certificate is not qualified.
Although sometimes the reason is not is a deliberate violation of the exporter, which
could be due to changes in temperature or humidity during transportation between
countries make insects to grow or by quarantine method between two different
countries. Therefore, enterprises need to pay close attention as well as exchange in
commercial contracts about these issues to minimize time-consuming, moneyconsuming disputes and the mutual relationship between both importers and exporters.
Vietnam is a signatory to cooperation agreements on plant protection and
quarantine with the following 9 countries: Cuba, Russia, Mongolia, Chile, Romania,
China, Belarus, Uzbekistan, Kazakhstan . So, if you export coffee to these countries,
you need to do quarantine for the shipment.
Currently, administrative procedures include customs clearance, registration, and
inspection procedures. Any import-export contract must fully meet the requirements
of administrative procedures and through departments according to the regulations of
the state. The import and export administrative procedures must ensure 2 factors:

Complete import and export dossiers according to regulations of the customs
department and customs clearance procedures for commercial imports and exports.
Therefore, understanding Vietnamese administrative procedures will help the company
implement customs procedures quickly and fully and is an essential basis for the
company to clear goods on time to minimize risks and a tax refund on contract terms
with the partner.
2.3 Some documents in the coffee export trade contract
In the Practice of International Trade subject, we have researched the documents
export-import in the international commercial contract, which is a series of the
necessary documents to complete in export/import for a batch of goods. Specifically
in this report, we will research the documents for exporters' parties and especially the
documents in the contract of the export coffee in Vietnam.
The export businesses have to prepare carefully the documents in below:
Commercial Invoice: this is a legal document that the seller supplies for the
buyer, we can say this is one of the necessary documents in the international
commercial contracts and shipping by the sea.
Sale contract: a document shows the purchase and sale cooperation
agreement between two parties, in which specific provisions on compulsory terms
following term No.50 of The Law Commercial and optional terms but encourage apply
is Incoterms.
Packing List: the way of packing the goods will be clearly shown through
this document.

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Bill of Lading: when the goods are loaded onto a means of transport such as
a ship or an airplane, this kind of document will confirm for that job, this kind of paper
is signed by the master.
Phytosanitary certificate: in order to prevent the spread of disease into the
importing country, this document will be issued and certified by the quarantine body
for the exported consignment.
Certificate of Origin: This is an important document showing the nationality
of where the goods are and whether it is obtained, produced, manufactured or wholly
processed in a particular country.
Customs Declaration: another type of document needed to declare exported
goods to the customs office to see if this shipment is eligible for import into another
country or not.
Why do we need to know information about the types of documents in commercial
contracts? Except for businesses that have a lot of experience in exporting, small and
medium enterprises, or just starting a business, it is extremely necessary to find out
information carefully to save time and problems if any. Shortages occur in the process
of goods being exported to other countries.
2.4 Government policies
2.4.1 Free trade agreements
When businesses between countries want to expand their brands through
economic and commercial relations to enjoy certain incentives or promote economic
development, the fact that these countries negotiate with each other to have Being able
to sign trade agreements is extremely necessary and is quite important for each
participating country. So what is a trade agreement? This is a diplomatic document
between two or more states to negotiate and sign the conditions for engaging in
commercial activities.
As we all know, in 2020, due to the COVID-19 epidemic outbreak in the
world, this has been affecting quite a lot of import and export activities of our country.

However, because participating in trade agreements, besides the challenges, we have
received many good opportunities for the industry in general and the coffee industry
in particular. So what are the trade agreements for this coffee industry? We will learn
through the presentation below:
a/ EVFTA - Free Trade Agreement Vietnam – EU
This is a new generation of a free trade agreement between our country and
27 member countries in the European Union - EU. Up to now, this is one of the two
FTAs with the widest scope and highest level of commitment.
As for the coffee industry, we can see that joining this trade agreement helps
our country's businesses to expand their consumer markets, have certain tax incentives,
and potential to attract capital. Foreign investment is very high. Although the
opportunity is so, besides that, we also face a few challenges that businesses need to
increase competitiveness and value of coffee by improving in terms of technology and
energy absorption. modern governance force.
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According to the Lao Dong newspaper, on September 16, 2020, Vietnam
officially had the first shipment with a weight of 296 tons exported from Vinh Hiep
Co., Ltd. to the European market under the EVFTA agreement. This is definitely a
good start for Vietnam's coffee industry.
b/ CPTPP - Comprehensive and Progressive Agreement for Trans

Pacific Partnership
This is a free trade agreement between Vietnam and 10 other countries. When
participating in the CPTPP, Vietnamese businesses will enjoy a very preferential tariff
reduction commitment when exporting goods to member countries. According to the
World Bank, our country's exports to the countries in the CPTPP are forecasted to
account for 25% of the total by 2030, expected to increase from 50 billion to 80 billion
USD.
According to a presentation on the European - American market, with 11
member countries in this CPTPP agreement, we will have more opportunities to boost
exports of some potential products while the global economy market is showing signs
of decline. In recent years, the trade relationship between our country and other
countries has been really good, and we have four countries are Canada, Chile, Peru and
Mexico, all committed to cut the tax rate as soon as this free agreement comes into
effect, especially in coffee exports, Peru and Chile have committed to a tax rate of 0%
for Vietnam.
c/ RCEP - Regional Comprehensive Economic Partnership Agreement
With a huge market of 24.8 trillion USD and more than 2.3 billion people
including 16 member countries, of which 10 countries of ASEAN and 6 countries have
joined, because RCEP is expected much and is considered as the largest FTA in the
world.
When joining this agreement, countries will receive a tax reduction of about
9000 types of goods and 65% of goods, this is certainly a perfect chance for coffee
businesses and others commodities. Currently, the RCEP agreement is still trying to
sign by the end of 2020, people are still looking forward to this happening in the
difficult circumstances of this COVID-19 pandemic.
2.4.2 Impacts of the state to support farmers/export businesses
As you all know, our country's coffee prices have recently decreased, so the
government also has many measures to overcome these situations: even though the
coffee price has decreased makes many people worry, the government still advises
people to grow coffee, but they must plan the correct coffee growing area and not

continue deforestation of the natural forest to grow coffee. In addition, the government
also provides capital so that coffee growers can further improve the quality of
replanting.
The State Bank, the Ministry of Agriculture and Rural Development have
jointly deployed coffee replanting with a planned capital up to 12,000 billion VND and
only for 5 provinces of the Central Highlands. However, due to unsolved problems
related to state policies and the fear of change among our farmers, this is still difficult,
expected to take 5-7 years.
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The government still encourages people, especially businesses that should
use factories with a variety of machine technology to increase their competitiveness
with other countries as well as create new things which only can we do it in the
Vietnamese market.
2.5 SWOT
2.5.1 Strengths
Advantages of Vietnam is that it has a climate suitable for coffee growing
and thanks to good natural conditions, fertile soil and large cultivated area, coffee trees
have enough conditions to grow well and prevent them from growing. many types of
pests and diseases. Abundant labor force, cheap labor cost and maintaining its position
as the 2nd coffee exporter in the world with high export volume. The State is always
interested in helping farmers and has improved policies for businesses, farmers to
facilitate coffee production / processing / export, in addition a few large enterprises

have investment capital. Foreign investors have also invested in European-standard
machinery and equipment for their companies.
2.5.2 Weakness
Vietnamese coffee is mainly exported in the form of raw coffee or green
coffee that has not been intensely processed as foreign competitors. Therefore, many
Vietnamese coffee brands are still unclear and not widely known by foreign
consumers, in other words, marketing issues - the strategy to build and develop coffee
brands. effective. In addition, the production and processing stage still limits the use
of high-tech science and technology applications, although many coffee exporters,
enterprises applying modern machines are still limited and have quite a few sources.
good human resources to manage. In addition, many farming households have many
difficulties with crops due to nature, commodity prices also decrease slightly due to
the impact of the COVID-19 epidemic, which brings worry and damage to exporting
enterprises. import of Vietnam.
2.5.3 Opportunities
Compared to the world coffee export market, although Vietnam is currently
facing many difficulties after the COVID-19 epidemic, if we look at another angle, our
country still has many opportunities to develop. With many advantages from nature
conditions in concentrated areas, the area of cultivated land also increases and human
resources are hard-working and enthusiastic at work. In addition, some companies have
successfully applied European-standard equipment to increase production and value
for products, and free trade agreements have also been signed to help transport goods
between countries that can cut or reduce the tax.
Besides that, Vietnam's coffee consumption market is increasing, it is really
a chance for to Vietnam export a huge coffee production to many countries. Our
country is also more and more foreign traders who come to cooperate to export coffee
to their countries or have goodwill to invest in capital to upgrading Vietnamese brand
coffee production and processing machinery chains.

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2.5.4 Threats
There are always 3 difficult challenges to overcome at present: the
uncontrolled change from the COVID-19 epidemic caused coffee export prices to fall
continuously, fierce competition between domestic and foreign businesses, and
sometimes unfavorable natural conditions makes many farmers have to switch to other
crops. Next, although the participation in free trade agreements is an opportunity for
our country's coffee exports to develop, exporters are forced to innovate in technology
to increase their competitiveness and value of coffee, this sounds simple but it also a
lot of difficulties for businesses because they are familiar with old methods, afraid to
innovate and are afraid of not keeping up with the speed of growth of technology 4.0
Another factor, in Vietnam we have ample resources and the salary paid by
businesses is cheap, the weakness of this is that it will make our product despite having
enough development conditions. However, the development can still be slow, so
besides investing in modern machines, they should also organize the training of a good
human resource.

Photo by: kenh14.vn

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Chapter 3: Solutions to boots Vietnam’s coffee to overseas
Vietnamese coffee is one of Vietnam's main agricultural exports, although there are
many opportunities and help from the government as well as foreign businesses but
in the long term, we think we should still find solutions to save ourselves. How to
do? Here are some solutions that we can read to and apply in life:
a/ Solutions to promote export of the coffee industry:
In terms of production, businesses need to promote the restructuring of the
coffee industry effectively, such as building concentrated and specialized growing
areas associated with the development of the processing industry, promoting the
linkage of raw material areas with deep processing facilities and factories to create
a stable source of goods in quality and quantity. Since Vietnamese enterprises have
so far only exported raw coffee, investing in machines in deep processing will help
our country's businesses bring their brands to the world.
At the same time, our country's businesses should also supplement
knowledge about machines using artificial intelligence to find out customers' needs,
we should also find and train good human resources with expertise and foreign Good
language for them to have a suitable development strategy and to help businesses
develop and expand markets in other countries, this is called trade promotion. In
addition to the competition, in a certain aspect, businesses also need to strengthen
links, cooperation in coffee production, and business together in the spirit of mutual
benefit to stabilize the export situation. expand the market as well as accumulate
more experience in the future.
b/ Solutions to boost the value of coffee exports:
There is a question that is: coffee production is facing the situation of "high
output, low price", so how to increase the value of coffee exports soon? This is not

a simple problem but we can fix it and improve it. Coffee in our country is a
commodity with a large turnover but low value compared to other countries,
accounting for only 14.2% of the global export market. The urgent problem is that
we need to research and come up with suitable solutions.
Businesses can also produce - process a variety of products and tend to meet
the current customer needs to meet the requirements of clean, organic products,
beneficial for health and environmental protection. school. If businesses can do this
along with promoting communication and branding, they will surely be known by
foreign businesses.
Also according to Dr. Manuel Diaz. P - a coffee consultant from Mexico also
advised our country's businesses that we need to create a more specific and stricter
standard in the production stage, find out how Improving production/quality is based
on science and technology, not based on fertilizers.

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Conclusion
To sum up, the coffee market is changing in a positive direction, gradually
expanding, orienting its development, and focusing on quality to meet market
demand. One of the factors of market development is the perception of reasonable
buying and selling - an increase in prices drives net exports to increase and to
increase export contracts. Thanks to exports, Vietnam is able to expand cooperation
relationships and promote external relations so that the economy can be integrated

with the EU so that the economy can be developed and export brings an important
factor to the economy. many aspects. Vietnam is a developing country in terms of
export markets, in which coffee is the main industry contributing a lot of GDP to
the country. From these problems, we show the export situation in Vietnam to the
international market, and take that as the driving force for more development and
offer solutions to solve problems.
In chapter one, we have an overview of the coffee-making process and export
activities. In addition, we also understand more about the quantity and consumption
markets, from which we learn about domestic coffee export enterprises and have a
general perspective on Vietnam's coffee export market. Also in this chapter, the
theoretical basis is given to help us to understand the basics of export and is a
prerequisite for development in the following points.
After a more general understanding of the coffee market, we will go to analysis with
specific data with chapter two. To better understand issues related to export,
especially Vietnamese coffee, the Sunflowers group presented the main contents
such as production - export situation, popular coffee varieties in the market. as well
as the fluctuation in export prices. In this chapter, we also discuss more the countries
that import Vietnamese coffee, about the needs and tastes of consumers. In addition,
we also offer a few reputable businesses as well as their competition in today's
growing environment. Next, we have outlined the general export process, the
considerations in the coffee export process, and government policies as well as the
effects of free trade agreements on coffee. export. Through that, we use the SWOT
method to summarize and re-evaluate the strengths, weaknesses, opportunities, and
challenges of the coffee industry.
Finally, in chapter three, we have come up with a few solutions to promote the
coffee industry and solutions to enhance the value of coffee to bring Vietnamese
coffee to the world market. These measures have been refined by domestic and
foreign consultants, so I highly recommend you to read this section if you are
incubating a coffee import-export business in the future.

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Hopefully, this report will help you get a better overview of the Vietnamese coffee
market, especially in terms of exports. This is extremely useful information for you
in your future career, so please read it carefully.

Conferences
1/ Bộ Công Thương – báo cáo Xuất Nhập Khẩu Việt Nam năm 2019
2/ Vietnambiz – báo cáo thị trường cà phê năm 2019 – 2020
3/ CoffeeRoastersVietnam – thống kê xuất khẩu cà phê Việt Nam những năm gần
đây
4/ Tạp chí Cơng Thương – báo cáo giá xuất khẩu cà phê năm 2020
5/ Vinanet – tình hình xuất khẩu cà phê Robusta
6/ Báo Đắk Lắk – ngành cà phê trước những cơ hội và thách thức
7/ Tin tức Pháp Luật – RCEP-FTA lớn nhất thế giới chuẩn bị được ký kết tại Hà
Nội
8/ Trung tâm WTO – xuất khẩu cà phê tận dụng cơ hội gì từ EVFTA
9/ Trung tâm WTO – tăng xuất khẩu trong năm đầu thực thi CPTPP
10/ Melody Logistic – thủ tục xuất khẩu cà phê
11/ CafeF – tin tức tổng quan và dữ liệu về xuất khẩu cà phê
And statistic articles from General Department of Customs, Ministry of Import and
Export

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