VIetnam Coffee
robusta proDuction areas in Viet nam
Viet Nam can be divided into roughly two different regions separated by the Hai Van mountain
range. This natural border splits Viet Nam into two climatic areas of north and south. The
south goes from the Mekong Delta and lowlands to upland basaltic areas in the Central
Highlands that have a moderate tropical climate. The north is characterized by limestone
mountainous areas which are subject to major climatic effects from central Asia and have a
much greater range of temperatures. The Viet Nam coffee industry encompasses a wide range
of people, ranging from transmigrants from rice production areas who have experience with
high yield and high performance rice systems to ethnic hill tribe minority groups who use low
input, subsistence agricultural systems. (Marsh and Minh 2002).
The Central Highlands of Southern Viet Nam are the main Robusta coffee producing areas
ranging from 300 m upwards and including some small areas up to 1500 m. The main Robusta
coffee growing areas are at approximately 300 m to 500 m altitude. The area has a warm
tropical climate, influenced by the south Asian monsoon with distinct dry and rainy seasons.
The following map shows the main agro-ecological regions of Viet Nam.Figure 5. Agro-ecological regions of Viet Nam
Source: Jones & Minot (2002)
8 Viet Nam coffee industryDiversification by smallholder farmers: Viet Nam Robusta Coffee 9
History of coffee in Viet nam
Coffee was first planted in Viet Nam in 1857. However, the coffee area remained less than
10 000 ha until the late 1970s. From the late 1970s to the early 1980s government structures
were created to increase the coffee production and conduct trade with other communist block
countries. Areas planted with coffee increased to 30 000 ha by the mid 1980s, but it was only
in the early 1990s that production increased dramatically.
After reunification of Viet Nam in 1975, Viet Nam began to rebuild its economy along the
communist collective models common to the eastern block countries of that era. Coffee was
used as a barter trade commodity to these countries. A gradual liberalization of the communist
collective policies saw the productive power of the Vietnamese people unleashed from the mid
1980s to the mid 1990s, enabling Viet Nam to become a major exporter of not only coffee, but
also a range of other crops. For example in 2003, Viet Nam had become the second largest
exporter of rice and pepper and the third largest exporter of cashews and straw mushrooms
(World Bank 2004) along with a range of other agricultural products in the top ten exports in
the world.
Table 4 shows a range of Viet Nam coffee industry data for the years 1979 to 2006. Key points
to note are the price spikes in the period from 1993/94 to 1998/99 and the very low price in
2001/02. The stabilizing of planted areas and production since 2000 is also evident. The Viet
Nam ‘coffee year’ is from 1 October (the start of the new crop harvest) to 30 September the
following year.
Robusta coffee production is concentrated in 5 key provinces of Dak Lak, Dong Noi, Gai Lai,
Kun Tom and Lam Dong. These 5 provinces account for over 96 percent of the coffee area
in Viet Nam (VICOFA 2004). Dak Lak province alone accounts for 46 percent of the coffee
area in Viet Nam. The Viet Nam agricultural census of 2001 concluded that 79 percent of all
coffee farmers were in these 5 provinces and 45 percent of rural households in the Central
Highlands are involved in coffee. Two-thirds of the coffee farms are smaller than 1 ha and only
3 percent are larger than 3 ha. (Jones 2002). The coffee industry of Viet Nam is dominated by
small holders with 85 percent of all farms in Viet Nam being under 1 ha and only 1 percent
are larger than 5 ha. (World Bank 2004). Table 4. Viet Nam coffee production and export data
0 Viet Nam coffee industryDiversification by smallholder farmers: Viet Nam Robusta Coffee
The following map was produced by the Viet Nam Coffee and Cocoa Association (VICOFA)
and shows the approximate locations of coffee production areas and amounts in Viet Nam.
Figure 6. Map of coffee production areas in Viet Nam