Vietnam

About Vietnam

Vietnam is the world’s second-largest coffee producer and the leading exporter of Robusta. For the 2025/26 marketing year, total production is forecast at 31 million 60-kg bags, with Robusta accounting for 30 million bags and Arabica for one million bags. Over 90 percent of coffee is grown in the Central Highlands, including Dak Lak, Lam Dong, Gia Lai, and Kon Tum provinces.

Production is dominated by smallholder farmers, with over 91 percent cultivating less than two hectares. Cooperative models exist but are often informal. Contract farming arrangements vary, including intermediary and nucleus estate models, with mixed success depending on governance and market access. Intercropping with durian, avocado, and pepper is increasingly common, offering income diversification and climate resilience.

Climate challenges are intensifying. Prolonged droughts, heatwaves, and erratic rainfall have reduced flowering and fruit development, especially in Dak Lak and Gia Lai. Groundwater depletion and low forest cover further threaten long-term viability. National programs have replanted over 130,000 hectares with drought-resistant varieties and introduced water-saving irrigation systems.

Political challenges include land use competition, with farmers shifting to higher-value crops like durian. Exporters face pressure from EU Deforestation Regulation (EUDR) compliance, requiring traceability and sustainability documentation. U.S. tariffs and global supply chain disruptions have also affected trade flows and pricing.

For UK and EU Buyers

Shipping times from Vietnam to the UK vary by method with sea freight taking typically 42 to 56 days.

For UK and EU buyers, Vietnam offers consistent access to high-volume and increasing high quality Robusta and limited-but-improving Arabica. Its smallholder base, expanding processing capacity, and competitive pricing make it attractive for both commercial and speciality sourcing. However, climate volatility, regulatory shifts, and land use pressures require careful supplier vetting and long-term engagement.