The country accounts for around 20 percent of the world's coffee output. Vietnam has experienced three sets of direct impacts as a result of the coffee crisis: Some regional economic shocks, socio-economic impacts in the primary coffee-producing region coffee production in Vietnam, presented the effectiveness of Arabica coffee in Huong Hoa ... taking in particular into consideration the level of coffee production in the world. However, according the Vietnam Cocao and Coffee Asociation, real output could be 21 million packs, … Coffee farmers from Latin America to Africa find that they have little reason to harvest their beans. Vietnam is the world’s second largest producer and exporter of coffee. Robusta, or C. canephora, is a lower grade coffee typically sold as instant coffee. Going forward, better regulations will incentivize more private capital to invest in coffee and rice value chains. Vietnam's meteoric rise to become one of the world's largest coffee producers in world-record time has been matched by equally fast changes in policies and market structure. The group says Robusta producers throughout several of the main producing regions in Vietnam… Contract farming will link farmers and agribusinesses to reduce transaction costs, maintain competitiveness, and ultimately increase farmers’ revenues. The World Bank provided $238 million in IDA financing to strengthen the competitiveness and sustainability of coffee and rice value chains in the Central Highlands and Mekong River Delta. Comparison of Arabica farmers revenues in between two kinds of zones Khe Sanh (more suitable) Huong Phung (less suitable) 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 12 34 56 78 9101112 Farm nr. In addition to the structural constraints, regulatory barriers and negative environmental impact from the overuse of fertilizers, chemicals, and water also made transaction costs high, and there were weak incentives for farmers to produce higher-quality raw materials or adopt climate-smart production practices. Coffee and rice suffer from unreliable quality and product safety, lack of brand recognition, and declining productivity from aging coffee trees and the effects of climate change. Vietnam is one of the largest producers of coffee in the world, second only to Brazil. By 2020, efforts to maximize finance for development are expected to provide 200,000 coffee and rice farmers with higher incomes, as profits are projected to increase by 20 percent. Prepared in consultation with the private sector, the work outlined the constraints and options for implementing ARP reforms in coffee and rice value chains. Vietnam’s emergence as a leading exporter of agro-food commodities—for aquatic products, rice, coffee, tea, cashews, black pepper, rubber, and cassava—contributes to its food security and poverty reduction. The project also encourages contract farming, and offers a package of trainings, services, and matching grants conditional on farmers’ efforts to reduce the use of seeds, fertilizers, agro-chemicals, water, and post-harvest losses. It has also provided advisory services to leading firms on supply chain management, post-harvest and warehouse management, sustainable rice platforms, and product marketing. IFC directly invested in private companies active in coffee and rice production, processing, and exports; and provided advisory services to firms. Global data and statistics, research and publications, and topics in poverty and development. With support from the World Bank Group, the government seeks to increase the quality and value of agriculture through three strategies: using natural resources more sustainably; reducing transaction costs to crowd in private investments in value chains; and providing commercial finance to farmers and agribusinesses. The country is the world’s second biggest producer of coffee production and export. To face this challenge, the World Bank Group adopted the MFD approach, which entails working with governments to crowd in the private sector while optimizing the use of scarce public resources. Activities include preparation of marketing materials, investor one-stop-shops, an investor relations management system, and investor after-care services. The global coffee industry continues to grow in 2018, driven by the steady and strong coffee consumptions around the world, while the top coffee producing countries – namely Brazil, Vietnam, and Colombia etc – still remain in dominance of the global coffee production and coffee exports over the recent years. While the area which majority of the Vietnamese coffee grew was not affected by the war, Buôn Ma Thuột region, the people were. Achieving the Sustainable Development Goals to end extreme poverty by 2030 will require about $4.5 trillion annually, far more than multilateral development banks or donors can provide by themselves. The Global Consumption Database is a one-stop source of data on household consumption patterns in developing countries. Market Overview Vietnam Coffee Market is witnessing a CAGR 8.07% during the forecast period (2020-2025). The Socialist Republic of Vietnam : Coffee Sector Report. If you continue to navigate this website beyond this page, cookies will be placed on your browser. We face big challenges to help the world’s poorest people and ensure that everyone sees benefits from economic growth. About the database. Table of contents 4 Section Page Introduction 5 Summary 10 Country profiles Indonesia 15 Ethiopia 17 Mexico 19 Uganda 21 Brazil 23 Peru 25 Honduras 27 India 29 Guatemala 31 Vietnam 33 Tanzania 35 Columbia 37 Kenya 39 Costa Rica 41 Nicaragua 43 Papua New Guinea 45 El Salvador 47 . Coffee production has been a major source of income for Vietnam since the early 20th century. Further analytical work followed in 2014 and 2015. The World Bank Group is providing strategic and investment support to strengthen farmers’ access to markets, boost income, enhance value chains, create jobs, promote climate-smart farming, and encourage private finance and innovation. Approximately 95 percent of the coffee produced in the country is of the Robusta variety. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. Government Vietnam is currently the world number one producer and exporter of Robusta coffee (which is widely used to make instant coffee), second only to Brazil in term of volume. Brazil - 2,595,000 metric ton (5,714,381,000 pounds) Brazil is the world's largest coffee producer. Over the past several decades, coffee production in Vietnam has developed as a major export-oriented industry. With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. The VNSAT is a credit from the World Bank for Vietnam to support its efforts in transforming the agriculture sector toward sustainable production, especially in rice and coffee. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face. The Coffee segment consists of Roast Coffee… Farmers will also be better organized and attuned to the product requirements of agribusinesses. In 2013, World Bank support to the Ministry of Agriculture and Rural Development in its preparation of the Agricultural Restructuring Plan (ARP) led to a strategic framework that aims for more market-oriented production, a shift to value chain development, a realigning of public spending to crowd in private capital, and increasing the returns and sustainability of private investments. The government promoted coffee production and exports. 2004. PROSPECTS FOR COFFEE PRODUCTION; 5.1. The World Bank provided $238 million in IDA financing to strengthen the competitiveness and sustainability of coffee and rice value chains in the Central Highlands and Mekong River Delta. ", Environmental and Social Policies for Projects, Finance, Competitiveness and Innovations Global Practice. In addition, the IFC Global Trade Supplier Finance program helps reduce risks for international traders to expand their operations in Vietnam by providing their local commodity suppliers with better access to financing at competitive rates. The efforts aim to directly benefit 200,000 coffee and rice farmers by 2020. reached by Vietnam in about a decade. Vietnam, was the second largest coffee producer, accounting for roughly 20 percent of the world coffee production. A third quarter rebound will help Vietnam meet its GDP growth target of 2.5-3 percent this year, the World Bank says. By the 21st century coffee was only surpassed by rice as a Vietnamese export. In recent years, concerns about the sustainability of agricultural growth, increasing public debt, and global competitiveness have prompted government action that targets in particular the coffee and rice sub-sectors, which employ 6 million farmers and generate about $4 billion in exports. The country's crop year runs from October to September. The World Bank Group works in every major area of development. Growers in other coffee growing nations blame the recurring excess of coffee supplies on the World Bank and its efforts. This had all changed by 1990, by which point Vietnam had reached its current place as the second highest producing coffee country in the world (after Brazil) – a result of heavy investment in coffee production made possible by the liberalisation of land ownership under Doi Moi reforms in the mid-1980s and World Bank/IMF policy recommendations incentivising farmers to produce coffee for export. The World Bank Group’s Finance, Competitiveness and Innovations Global Practice provided advisory support for capacity building and institutional reform to promote, facilitate, and retain private investments in the targeted sectors. Investments ensued in 2015, with the World Bank providing $238 million in IDA financing for an initiative focused on strengthening the competitiveness and sustainability of these value chains in the Central Highlands and Mekong River Delta. Vietnam: Revenue in the Coffee segment is projected to reach US$4,845m in 2020. In 2001 and 2002, world coffee production was estimated to be about 116 60-kilogram bags, while consumption only totaled five million bags. In fact, Coffee became Vietnam’s major economic contributor. An assessment of difficulties faced by the sector. Environmental and Social Policies for Projects. The coffee trade is one of Brazil’s most prolific industries. Coffee in Vietnam – The basics. Terraced Coffee Plants in Vietnam. Vietnam from The World Bank: Data. With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. Vietnam has become an important source of Robusta coffee for many large coffee roasters, due to its vast availability and reasonable value. Vietnam’s MY2016/17 coffee production is revised down from about 26.7 million bags to 26 million bags due to unusual rain during the harvest that resulted in further losses for the expected smaller Robusta production. Efforts to strengthen the enabling environment continue. Vietnam is a top-ranking nation producing and exporting coffee Robusta in the world, in the 2006-2007 crop, the output reached about 17,4 million 60 kg packs of coffee. Together they have boosted the sustainability of coffee production in the Central Highlands of Vietnam, benefiting tens of thousands of coffee farmers in the region. First introduced by the French in 1857, the Vietnamese coffee industry developed through the plantation system, becoming a major economic force in the country. While Vietnam has rapidly claimed a commanding presence in the market, the failure of global cooperative measures among coffee producing and consuming nations as well as maneuvering by the coffee market's foremost giant, Brazil, significantly contribute to the global coffee crisis. Recently, as the government removed regulatory constraints to encourage rice mills to produce higher-value rice products, IFC has directly invested in companies that produce seeds and process and export coffee and rice. To attract and retain private investment in the provinces where the IDA-financed project operates, the World Bank Group’s Finance, Competitiveness and Innovations Global Practice is providing advisory assistance for capacity building and institutional reforms to promote private investments. Setting Up the Regulatory and Institutional Framework. In … In 2012, Vietnam exported 1.73 million tons of coffee, worth some $3.67 billion and accounting for more than 50 percent of the world&39;s robusta, which is used in instant coffee … This result the increase of income of employment and decline the hunger rate. Vietnam now is one of the most dynamic emerging countries in East Asia region. The market is expected to grow annually by 10.4% (CAGR 2020-2025). 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