Author: Nguyễn Nghĩa |
Date: June 7, 2026
What Must Be Done to Stop Exporting Raw Coffee and Selling It Cheap?
Key Points:
- Lam Dong, Vietnam’s largest coffee-growing province, still exports nearly 100% raw beans at low prices.
- In the first 4 months of 2026, export volume rose 9.4% but value fell 10.3% year-on-year.
- Processing accounts for 60% of a coffee’s quality and refinement.
- International standards (EUDR, Net Zero, ESG) are becoming mandatory market access requirements.
- A strategic shift to deep processing and modern technology is urgently needed.
- Cooperatives must become the pillar linking small farmers.
Despite being the largest coffee province in Vietnam, Lam Dong remains trapped in the cycle of exporting raw beans at low prices. The time has come for this strategic commodity to undergo a revolution, shifting from raw beans to refined processing to enhance value.
The Paradox of the “Brown Gold” Capital
In 2025, among agricultural, forestry, and fishery exports to key markets such as the European Union, coffee, together with seafood and cashew nuts, led the value, accounting for 49%, 15%, and 14% respectively.
In the first four months of 2026, Vietnam’s coffee export picture remained dynamic, with volume reaching approximately 791,090 tonnes and value reaching 3.66 billion USD. However, behind these numbers lies a troubling reality: export volume increased by 9.4%, but value decreased by 10.3% compared to the same period last year.
This decline exposes a fundamental weakness of the coffee industry: over-reliance on raw bean exports. Lam Dong province has the largest coffee growing area in the country, with about 314,000 hectares currently under harvest, average yield of 3.2 tonnes of green beans per hectare. The paradox is stark: nearly 100% of export output remains raw green beans. Yet processing accounts for up to 60% of a coffee’s flavour and refinement.
Technology as the Gateway to the Value Chain
According to the Vietnam Coffee and Cocoa Association, Vietnam has joined a total of 17 bilateral and multilateral free trade agreements (FTAs). New generation FTAs such as EVFTA, CPTPP and RCEP open up favourable tariff opportunities, but the path is also full of technical barriers.
If Lam Dong continues with a small-scale, fragmented production model lacking long-term chain linkages, the coffee industry will be pushed into a weak position. “Large markets do not just buy coffee beans; they buy the ‘environmental ethics’ of the production process. International standards are becoming increasingly stringent: the EU Deforestation Regulation (EUDR), Net Zero commitments, labour rights, and ESG governance standards are becoming mandatory passports for market access,” Mr. Tuan emphasised.
| Standard / Requirement | Impact on Coffee Exports |
|---|---|
| EUDR (Anti-deforestation) | Traceability and proof of forest-free production |
| Net Zero / ESG | Carbon footprint, social responsibility, governance |
| 4C, Rainforest Alliance, VietGAP | Minimum entry certificates for premium markets |
What Must Be Done?
To stop exporting raw beans and selling cheap, Lam Dong’s coffee industry needs a restructuring strategy. The core focus is to strongly attract investment in deep processing technology. “We need to design and issue preferential policies on taxes, land funds, and green credit to invite large investors to build modern, large-scale integrated processing plants.
Attention should be paid to attracting investment in producing ground roasted coffee, specialty instant coffee for export. Only by boldly investing in modern drying technology can the value of coffee beans be multiplied,” shared Mr. Bach Thanh Tuan, Vice President of the Vietnam Coffee and Cocoa Association.
Alongside attracting investment, economists also argue that internal strength must be consolidated by promoting collective economic development. Cooperatives and co-operative groups must truly become the backbone to link small farm households, consolidate output, and thereby enhance negotiation and pricing power.
The shift from quantity to quality, from raw exports to refined processing, requires the joint effort of government, businesses, and farmers. When cultivation, care, and deep processing technology are prioritised, combined with market-oriented thinking, Lam Dong’s coffee beans will certainly shed the “cheap price tag” and confidently compete through the brand and value of the very land that grew them.
Original Vietnamese article by Nguyễn Nghĩa – Translated and adapted by Coffee World.
All rights reserved. Republication with attribution permitted.
Publication date: June 7, 2026
