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Coffee industry needs sustainable development to target $6b in exports by 2030

Vietnam’s coffee industry needs to solve many challenges to achieve sustainable development, targeting an export value of US$6 billion in 2030.



According to Đỗ Hà Nam, vice chairman of Vietnam Coffee and Cocoa Association (Vicofa) and chairman of Intimex Group, in the 2022-23 crop, the coffee output is expected to decrease by 10-15 per cent on year to 1.47 million tonnes.

The coffee growing area tends to decrease because growers switch to planting other trees with more economic efficiency such as durian and avocado or intercropping in the garden.

The export volume of the 2022-23 crop is also forecast to decrease sharply compared to the previous crop due to little inventory from the 2021-2022 crop.

The exchange rate between the Vietnamese đồng and US dollar is fluctuating. That can cause risks, affecting the offered export price.

The coffee industry must have mechanisation in harvesting coffee due to a lack of labour, especially young workers that do not want to work in raw material areas.

However, Vietnamese coffee now has advantages in competing with Brazilian coffee, a rival coffee exporter with Vietnam in the global market, according to Nam. Especially, in the context that the European Union continues to strictly implement standards in using Glyphosate, a kind of herbicide, Vietnamese coffee is assessed to meet those standards. This is the main competitive advantage against Brazilian Robusta.

In addition, the freight rates to Europe and the US have decreased sharply compared to that in the 2020-2021 crop. It will also be a favourable factor for Vietnam’s coffee exports this year.

To continue the sustainable development of the coffee industry in the future, the Ministry of Agriculture and Rural Development will focus on reviewing the scale of coffee development.

The ministry will promote research on high-yield and high-quality coffee varieties and implement technical packages for cultivating high-quality coffee.

It will also promote safe production for reducing carbon emissions, organise production chains, and improve processing capacity and training of human resources.

At the same time, the ministry will promote calls for investment in the coffee processing industry, and build and perfect the market information system for processed coffee products.

It will promote Vietnamese coffee brands and culture, and consolidate the traditional coffee export markets such as the EU, the US, Japan and South Korea, besides developing potential markets of ASEAN and China.

The ministry will promote negotiations to build a retail system for Vietnamese processed coffee in the global market.

Meanwhile, domestic coffee consumption is expected to increase by 5-10 per cent in the coming years.

Therefore, many instant coffee processing plants have been built or expanded each year with higher capacity such as Marubeni, Louis Dreyfus and Instanta, Intimex Group and Olympic.

The companies have promoted the development of coffee shop chains. Newly opened or reopened coffee shops are expected to quickly develop or recover operations as before the pandemic.

Phùng Đức Tiến, Deputy Minister of Agriculture and Rural Development, said that Vietnam’s coffee production was facing many challenges, including high growth but not sustainable development.

Forms of cooperation from production to purchasing, processing and consumption of products had not had close linkage.

The coffee industry still had many potential risks from changes in climate conditions to consumption markets.

To support the coffee industry in sustainable development, Nam said that the State should ensure disbursement in capital of banks for production, processing and export.

In addition, the re-planting is not yet synchronised, only in a few areas with the advantage of growing coffee such as Lâm Đồng and Đắk Nông, so it will be necessary to promote the re-planting of coffee trees in other localities being able to grow coffee trees, according to Nam.

At the same time, it needs to promote the implementation of sustainable coffee and coffee quality programmes.

Besides stabilising the existing coffee area, it also needs to develop Arabica coffee area in eligible areas, mainly in the Northwest, Central Highlands and North Central of Vietnam. That will contribute to increasing export output and high-quality coffee products in the future.

Trần Vinh from the Western Highlands Agriculture and Forestry Science Institute said Arabica coffee only occupied a small area out of the total coffee area in Vietnam, reaching about 50,000 hectares, equivalent to about 8 per cent of the total area. This kind of coffee was concentrated in regions of some provinces such as Lâm Đồng, Kon Tum, Sơn La, Điện Biên and Quảng Trị.

Vietnam’s Arabica coffee products faced difficulties in competing with the same products made in other countries because of unsustainable farming practices, and low production and processing outputs.

According to the coffee replanting project in the 2021-25 period of the Ministry of Agriculture and Rural Development, Vietnam re-cultivates coffee in a total area of about 107,000 hectares, including Arabica and Robusta coffee. Of which, the re-cultivation area of Arabica coffee is about 20,000 ha in the Northwest and 12,000 ha in the North Central.

At present, high-quality and specialty coffee products have not yet developed strongly, according to Vinh. However, the selling prices of those products are very high, the coffee industry needs to increase the rate of processed coffee products to about 15 – 20 per cent of the total Arabica coffee of Vietnam.

In areas with high capacity such as Arabica coffee production areas in Lâm Đồng Province, coffee growers need to carry out the right production process and join certified organisations for producing high-quality Arabica coffee. Those create specialty coffee products associated with regional brands.

Lâm Đồng has famous Arabica coffee production areas such as Cầu Đất and Lạc Dương with recognised brands of “Arabica Langbiang Coffee” and “Cầu Đất Coffee – Đà Lạt”.

Vietnam exported 1.7 million tonnes of coffee in 2022, earning $3.9 billion, according to the Vietnam Coffee and Cocoa Association.

Source: Viet Nam News



Shell to deliver first LNG shipment for PV Gas



Petrovietnam Gas JSC (PV GAS) has confirmed a purchase with Shell PLC, facilitating the world’s leading LNG supplier to transport its first LNG shipment to Vietnam.

Shell to deliver first LNG shipment for PV Gas hinh anh 1The logo of Shell at the Contech Vietnam Fair in 2023. (Photo: VNA)

Hanoi Petrovietnam Gas JSC (PV GAS) has confirmed
a purchase with Shell PLC, facilitating the world’s leading LNG supplier
to transport its first LNG shipment to Vietnam.

PV GAS issued a tender on April 27 to import LNG for the trial run
and commercial operation of Thi Vai LNG warehouse.

And Shell was selected as the supplier for the first imported LNG
shipment to the warehouse.

The signing confirmation is a milestone for developing PV GAS and Vietnam’s
gas industry. The Thi Vai LNG Warehouse is the largest scale in Vietnam
with a capacity of phase 1 of 1 million tonnes per year, then expanding to
3-6 million tonnes. 

It can receive LNG vessels of up to 100,000 tonnes of LNG ships,
with the main phase 1 facility including LNG storage tanks with a capacity
of 180,000 m3 and technological equipment designed according to Vietnamese and
international standards and regulations.

The system will supply about 1.4 billion m3 of gas to Nhon Trach 3
and 4 power plants, industrial customers, and a part of Vietnam’s gas shortage
after 2023./.


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Vietnam sees steep decline in hiring of foreigners, overseas Vietnamese



The Vietnamese job market saw a plunge in recruitment demand in January-April, with hiring of foreigners and overseas Vietnamese tumbling 39 percent compared to the pre-pandemic level due to the global economic downturn, according to a report recently issued by Navigos Group, one of the leading recruitment companies in Vietnam.

In addition, there was a significant drop of 63 percent in demand for hiring seasonal workers and individuals on short-term contracts. 

Similarly, the demand for recruiting new graduates also experienced a substantial decrease of 49 percent.

Following the prevailing market fluctuations and economic downturn, there was a noticeable decline in labor recruitment demand for various positions including foreigners, overseas Vietnamese, seasonal workers, short-term contracts, new graduates, and mid-level and senior professionals, according to the Navigos Group report.

Overall downtrend

Navigos Group conducted the analysis using job posting data from its platforms, VietnamWorks and Navigos Search, comparing the first four months of 2019, or the pre-COVID period, with the first four months of 2022, or post-pandemic, and January-April this year.

The findings showed that on average, the recruitment demand for various industries during the first four months of 2023 shrank 18 percent compared to the pre-pandemic period and reduced 16 percent compared to the post-pandemic recovery phase in 2022.

Notably, the textile, garment, and footwear industries experienced a persistent 39-percent fall in labor demand, primarily influenced by the global economic recession, inflation impacting purchasing power, and reduced orders.

The recruitment demand in the construction and real estate industry contracted by up to 34 percent in January-April and the procurement, materials, and logistics sectors faced a 25-percent decrease compared to 2019.

The import-export sector dwindled by 18 percent, while the transportation and logistics sector recorded a decline of 22 percent.

The tourism, restaurant, and hotel sectors, which were significantly impacted by the COVID-19 pandemic, saw the recruitment demand dive by 55 percent in the first four months of 2022 compared to the pre-pandemic level.

However, there was a slight increase in staffing requests within these sectors in January-April, with the decline reducing from 55 percent in 2022 to 43 percent when compared to the pre-pandemic level.

The legal and administrative fields also encountered a substantial decline of 31 percent in the demand for recruitment.

The recruitment demand for marketing professionals dropped by 28 percent compared to the pre-pandemic period.


Bucking the downtrend, the banking and financial services sector, along with the consumer goods industry, experienced a growth rate of 10 percent in the first four months of 2023 compared to the equivalent period prior to the pandemic.

The recruitment demand in the healthcare, retail, and wholesale sectors remains stable, with little to no significant changes.

Navigos Group forecasts that businesses will continue to adopt cost-cutting measures to retain their workforce or may even tighten their belts further until the global economy hits its lowest point and begins to recover.

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Hanoi urged to bolster economic growth drivers



Permanent Government members have asked Hanoi to bolster its economic growth drivers, namely investment, export, and consumption, during a recent meeting with the Standing Board of the municipal Party Committee.

Hanoi urged to bolster economic growth drivers hinh anh 1Part of Hanoi capital city (Photo: VNA)

Hanoi – Permanent Government members have asked Hanoi to bolster its economic growth drivers, namely investment, export, and consumption, during a recent meeting with the Standing Board of the municipal Party Committee.

They highly valued efforts and achievements by the Hanoi Party organisation, administration, and people which have joined the entire country in stablising the macro-economy, controlling inflation, boosting growth, guaranteeing major balances, developing culture, maintaining political stability and social order and safety, consolidating defence – security, and promoting external relations and integration into the world, according to the Government Office’s announcement of the permanent Government members’ conclusions made at the meeting.

However, there remains certain shortcomings, difficulties, and challenges to be addressed, they pointed out, elaborating that Hanoi hasn’t made any considerable breakthroughs in economic development, especially sustainable and substantive development; the growth pace is slower than expected; while environmental pollution, traffic congestion, and infrastructure overload have yet to be improved remarkably.

They requested that the city should be further aware of its role, position, potential, and importance to national development; identify difficulties, challenges, and weaknesses; strongly bring into play self-reliance, solidarity, and the spirit of thinking big and acting bold so that it can develop comprehensively, fast, and sustainably and deserve its status as the national political – administrative headquarters and a big centre in terms of economy, culture, education – training, science – technology, and international integration of the whole country.

Hanoi should actively grasp the situation; stay ready to respond to any circumstances; improve the capacity of forecasting possible impacts on local economic development; make flexible, timely, and effective policy response; and bolster economic growth drivers (investment, export, consumption). Besides, it needs to seriously implement the Government and the Prime Minister’s resolutions and directions on dealing with problems in the monetary, credit, real estate, stock, and corporate bond markets.

The capital needs to improve the management, use, and disbursement of public investment, along with funding for the socio-economic recovery and development programme and the three national target programmes. It should strive to complete the tasks and overfulfill the targets for 2023 so as to create a solid stepping stone for the following years. It is also necessary to mobilise every resource for development, promote public – private partnership, and apply new governance, investment, and management models.

Permanent Government members demanded Hanoi push ahead with administrative reforms; build a system of administrative agencies with strong solidarity, high unanimity, integrity, and democracy that work efficiently and centre on people and enterprises; and develop a contingent of professional, civilised, modern, incorruptible, and devoted cadres and civil servants who work for the sake of the people.

They underlined the importance of quickly devising the Hanoi Capital Planning for 2021 – 2030, with a vision to 2050; and adjusting the general planning for building the city by 2045, with a vision to 2065 that features a reformed mindset and a breakthrough, strategic and long-term vision, capitalises on every distinctive potential, outstanding opportunities and competitive edges, and addresses outstanding problems and weaknesses.

The city was also told to step up the implementation of national digital transformation measures and increase the provision of online public services on the National Public Service Portal.

In addition, Hanoi needs to boost socio-economic development in tandem with preserving and bringing into play traditional cultural values and protecting the environment. Social issues, social welfare policies, job creation, and educational and manpower quality should also be given due attention.

The officials required Hanoi further to guarantee political security as well as social order and safety, step up substantive diplomacy and international integration, enhance disease prevention and public health care, and augment the fight against corruption and other negative phenomena.

Local authorities were also asked to boost the Party and political system building; create a lean, efficient, and effective apparatus; and develop a contingent of moral and capable personnel, especially leaders of agencies, according to the announcement./.


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