Having a cup of coffee in Vietnam

Coffee in Vietnam: agriculture and consumer culture

Coffee plays a significant role in Vietnam’s agriculture and consumer market. The French introduced the coffee plant to Vietnam during the colonial era in Indochina. By 1888, coffee became a key agricultural product in the Central Highlands region of Vietnam. Today, Vietnam is the world’s second-largest coffee producer and exporter, trailing only Brazil. In numbers: in the first half of 2024, Vietnam exported 893,820 tons of coffee, generating $3.19 billion in revenue. Major export markets for Vietnamese coffee include: Europe (39.5%), Japan (7.1%), the United States (6.1%), and Russia (5.5%).

Currently, the coffee industry in Vietnam is gradually shifting towards organic coffee, in order to meet the growing demand for environmentally friendly products. In 2021, Vietnam was the world’s leading producer of green coffee, with a production volume of 1.85 million tons. Alongside export growth, the domestic coffee market is booming. Major players such as: Trung Nguyên, Phúc Long, Highlands, and Starbucks are leading the way. The local coffee market is estimated to reach over $500 million by 2024, with estimated annual growth exceeding 8% between 2024 and 2029.

Coffee in Vietnam: from a pleasure to a cultural identity

In Vietnam, it’s almost impossible to walk a few hundred meters without encountering at least one cafe. In these cafes, you can find a wide variety of coffee drinks to enjoy on-site or to take away. Seeing cafes is as common as seeing restaurants in the country. There are many reasons why people drink coffee. Friends meet to chat over coffee, people share their happiness or their sorrows, or they recharge during a busy day. For many, coffee becomes an essential daily habit. And if they skip it, they can feel that their day is not fulfilled.

Vietnamese coffee really caters to all tastes. From humble street-side coffee stalls where locals sip black coffee or “cà phê đen” in the mornings, to luxurious cafes in prime locations: the coffee culture in Vietnam is very diverse. It is a place where friends gather to reminisce and reflect on life over a cup. Or where individuals quietly contemplate their day with a hot drink in hand.

Coffee has become so integral to Vietnamese life that it has woven its way into music, poetry, and literature. Its bitter-sweet aroma is deeply evocative. Did you know that the scent of coffee can directly stimulate your brain? Numerous studies have shown that coffee enhances focus and activates memory. This explains why so many people have become devoted “coffee fans.”

In Vietnam, coffee is so popular that it has even become part of the local vernacular. If someone invites you to “đi cà phê” or “go coffee”, they are simply asking, “would you like to go out and have a drink?” One very nice thing about coffee shops in Vietnam is that they do not offer only coffee. In fact they often offer a wide range of other beverages like tea, fruit juices, and smoothies. So it is not unusual for someone to say, “I’m going for coffee with a friend”, even if they do not plan to drink coffee. So, the next time someone invites you for a “coffee” in Vietnam, take it as a sign that they consider you their friend 🙂

Can foreigners enter the Vietnamese coffee market?

Foreigners are allowed to establish export- and distribution companies in Vietnam. Provided that they come from WTO member countries, or from countries that have free trade agreements with Vietnam. There are some further restrictions, e.g. the exported product must not be explicitly restricted from export-import activities, which often applies to sensitive natural resources. Furthermore, the exporting party must have the required legal documents, such as an Investment Certificate, Business Registration Certificate, and Business License. But it is indeed possible for a foreigner to export coffee from Vietnam.

The same goes for foreigners wanting to start a cafe in Vietnam. In fact, this is one of the “easier businesses” for a foreigner to establish in Vietnam. There is of course a lot more to say about this. But in very short, establishing a foreign-invested company in Vietnam includes the following steps: (i) registering the investment project, (ii) submitting documents and receiving the Investment Registration Certificate, (iii) registering the business and publicly announcing information on the National Business Registration Portal, (iv) engraving and uploading the company seal, and if needed (v) applying for sub – licenses.

VNHL is here to support you

If you are dreaming about opening a cafe in Vietnam, or if you want to learn more about exporting coffee from Vietnam: let’s talk !! Our three main services are: (i) consulting, (ii) networking, and (iii) supporting. Meaning that we can consult you about entering the Vietnamese coffee market, that we can put you in touch with useful contacts in the field, and that we can provide you with any practical support that you will need to make your ventures in Vietnam successful. You can reach us via the chat button on the right of this page, or via our contact us page. In any case, we look forward to hearing from you and to supporting you.