Title: Vietnam Coffee Sector, Restructuring Plan, and VCCB (Vietnam Coffee Coordinating Board Author: Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD)

1. Vietnam Coffee Sector,
Restructuring Plan, and VCCB
Institute of Policy and Strategy for Agriculture
and Rural Development (IPSARD)
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2. Overview Vietnam coffee sector
• Vietnam entered global market major
producer early 1990s.
• Free market with Vietnam (1992-now): real
coffee prices fluctuate greatly.
• Key green coffee producer: 2nd largest
exporter (1st if robusta only).
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3. Free market with Vietnam (1992-now):
real coffee prices fluctuate greatly.
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Free maket with VietnamQuota
Transition

4. Key green coffee producer (1)
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Source: ICO.

5. Key green coffee producer (2)
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Source: ICO.

6. Key factors for success
• State sponsored migration Central
Highland.
• Economic reforms.
• ICA quota system collapse.
• Others (weak currency, low wages, high
productivity, rural infrastructure & ports).
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7. Pitfalls Vietnam coffee growth
• Suboptimal expansion of coffee
plantations.
• Capture low value green robusta coffee.
• Small processing industry incl. soluable
and roast n ground coffee.
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8. Restructuring plan 2020 towards
sustainability, high quality, high income
• Mantain 600.000 ha planted coffee of which
replant 120.000 ha old trees.
• Apply intercropping, planting shade trees,
sustainable coffee production practices.
• Improve irrigation scheme, water management.
• Upgrade coffee drying, processing system.
• Promote brandings, i.e. GIs.
• Institutions: VCCB, coffee farmer groups, state-
owned enterprises, PPPs, international
cooperation.
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9. Vietnam Coffee Coordinating Board
(VCCB) (1)
• VCCB consists public private institutions represent
coffee industry.
• VCCB members: representatives MARD, PPCs,
VICOFA, Coffee enterprises, and Coffee
producers.
• VCCB Director Board
– Director: Mr. Lê Quốc Doanh (Deputy Minister MARD)
– Deputy Director: Mr. Lê Văn Đức (Deputy Director
DCP)
– Deputy Director: Mr. Nguyễn Đỗ Anh Tuấn (Director
IPSARD).
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10. Vietnam Coffee Coordinating Board
(VCCB) (2)
• Three sub-committees
– Production.
– Procesing & Trade.
– Policy & Sustainability.
• Functions
– Consult coffee policies, strategies, plannings,
programs, action plans to Minister MARD.
– Share knowledge, information, trade facilitation,
PPP.
– Participate ICO.
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11. Sharing Experiences Information
R&D (1)
• VCCB activities
– National sustainability curriculum for coffee (NSC):
ToT, ToF.
– Coffee demonstration farms.
– Water saving irrigation.
– Coffee landscape.
– Sustainable coffee producer association (Lam Dong,
DakLak).
– Policy dialogue forums, outlook conferences,
implementing partners knowledge learning workshops
– International cooperation i.e. ICO, GCP.
– Ad hoc research/implementations.
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12. Sharing Experiences Information
R&D (2)
• VnSAT financed projects
– Coffee information system (Agroinfo)
– Technical supports for VCCB (CMD)
• Coffee commodity data base
• Coffee outlook conference series
• Policy review
• Domestic market demand assessment
• Agro-forestry coffee production
• Coffee value chain
• Promoting domestic consumption
• Coffee credit
• Geographical indication (Rudec)
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13. Furture Collaborations
• Exploit high value niche markets
• Soluable coffee
• Toll processing roast n ground
• Promote domestic demand
• Develop coffee origins (coffee tourism)
• Brandings i.e. GIs.
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14. Abbreviations
• VCCB: Vietnam Coffee Coordinating Board.
• IPSARD: Institute for Policy and Strategy for Agriculture and Rural
Development.
• ICA: International Coffee Agreement.
• GI: Geographical Indication.
• PPP: Public Private Partnership.
• MARD: Ministry of Agriculture and Rural Development.
• PPC: Provincial People Committee.
• VICOFA: Vietnam Coffee-Cocoa Association.
• DCP: Department of Crop Production.
• ICO: International Coffee Organization.
• NSC: National Sustainability Curriculum for Coffee.
• ToT: Training of Trainer.
• ToF: Training of Farmer.
• GCP: Global Coffee Platform.
• CMD: Commodity Market Division.
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