Coffee production in Vietnam

Coffee production has been a major source of income for Vietnam since the early 20th century. First introduced by the French in 1857, the Vietnamese coffee industry developed through the plantation system, becoming a major economic force in the country. After an interruption during and immediately following the Vietnam War, production rose once again after Đổi mới economic reforms, reaching 900,000 tons per year in 2000. In 2009, Reuters reported Vietnamese coffee exports at "an estimated 1.13 million tonnes" for the previous year, stating that coffee was second only to rice in value of agricultural products exported from Vietnam.

Coffee was introduced to Vietnam in 1857 by the French and slowly grew as producer of coffee in Asia. The height of coffee production occurred in the early 20th century as small-scale production shifted towards plantations. The first instant coffee plant, Coronel Coffee Plant, was established in Biên Hòa, Đồng Nai Province in 1969, with a production capacity of 80 tons per year.

The Vietnam War disrupted production of coffee in the Buôn Ma Thuột region, the plateau on which the industry was centered. Although seldom involved in conflict, the area was a crossroads between North and South and was largely depopulated. After the North Vietnamese victory, the industry, like most agriculture, was collectivized, limiting private enterprise and resulting in low production.

Following Đổi mới reforms in 1986, privately owned enterprise was once again permitted, resulting in a surge of growth in the industry. Cooperation between growers, producers and government resulted in branding finished coffees and exporting products for retail. It was during this time that many new companies involved in coffee production were established, including Đắk Lắk-based Trung Nguyên in 1996 and Highlands Coffee in 1998. Both of these continued on to establish major brands distributed through a widespread network of coffee shops. By the late 1990s, Vietnam had become the world's #2 coffee producer after Brazil, but production was largely focused on Robusta beans—considered inferior to Arabica due to their bitterness—for export as a commodity. Recent government initiatives have sought to improve the quality of coffee exports, including more widespread planting of Arabica beans, the development of mixed-bean coffees, and specialty coffee such as kopi luwak (Vietnamese: cà phê chồn, "weasel coffee").

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Wikipedia