The Extraordinary Vietnamese Coffee at CAEXPO

Written by Li Min & Xu Jiangli / Translated by Tang Huiqun

Speaking of Vietnamese coffee, some may wonder, does Vietnam produce coffee? Yes, it does, and Vietnam also grows coffee beans on a large scale with its share of world exports second only to Brazil's. On top of that, its coffee beans enjoy a good reputation in the world. 

Vietnamese coffee features a soft, sweet-bitter taste with a strong aroma. It is said that the most representative Vietnamese coffee brands are Moossy Coffee, G7 Coffee, and Saigon Coffee. China and Vietnam are closely connected and share a natural affinity, so Vietnamese coffee enjoys geographical strength in the Chinese market. Through the China-ASEAN Expo (CAEXPO in short), Vietnamese coffee has surpassed other brands to become a "fast-selling good" in China's coffee consumption market with its high quality and low price. 

Why is Vietnamese coffee so extraordinary? 

Robusta, a reputable brand of Vietnamese coffee bean, is mainly used to make instant coffee or premium coffee mix. Vietnam's unique geographical environment and tropical monsoon climate make it a fertile ground for coffee bean cultivation. 

Coffee has captured a significant share in the Chinese market in recent years. Widespread cafes in cities and a wide variety of coffee drinks on the shelves reflect China's growing demand for coffee. Coffee trade cooperation between China and Vietnam has huge potential, as seen through the lens of the gradual increase in coffee demand. 

In addition to its geographical strength, Vietnamese coffee also boasts unique techniques for making and tasting coffee. Traditional Vietnamese coffee is made from condensed milk and coffee beans, which emits a strong, creamy flavor that overshadows the original bitterness and captivates coffee lovers. The Vietnamese pot used for coffee making is unique in that it allows users to have a leisurely experience as the coffee slowly drips from the container. 

From February 2021 to January 2022, Vietnam emerged as the world's second-largest coffee exporter after Brazil, with the highest average yield of 2.3 tons per hectare, according to the International Coffee Organization. The country exported 1.78 million tons of coffee in 2022, with exports reaching a record high of $4.06 billion, according to Vietnam Customs. Vietnamese coffee is popular worldwide due to its affordable price and high quality and sells well in the international market. Huge export volumes have spurred Vietnam to expand its area for coffee cultivation. Today, the total area of coffee cultivation in Vietnam is about 710,000 hectares, of which 650,000 hectares are harvested areas that are mainly distributed in five provinces in southwest Vietnam. Among them, Buon Me Thuot city in Dak Lak province is widely considered the "coffee capital of Vietnam" with an area of about 210,000 hectares of coffee cultivation and an annual output of more than 520,000 tons, accounting for more than 30% of Vietnam's total production. 

Coffee cultivation is a major contributor to the economies of Vietnam's many provinces and provides abundant jobs for locals, driving the country's economic growth. As production areas expand, Vietnam has been forging stronger partnerships with other countries in the coffee trade, fostering innovation among Vietnamese coffee enterprises to open more overseas markets. 

Vietnamese coffee has a long history of trade with China. In the 1990s, Vietnamese coffee made its way into the Chinese market via border trade. Vinacafe and G7 Coffee introduced their instant coffee to cater to the huge demand in the Chinese market, which was well received by customers and resulted in phenomenal sales of 4 tons per day, paving the way for Vietnamese coffee to open a larger market in China. 

CAEXPO, a bridge between China and Vietnam on the coffee trade 

As a key platform for fostering economic and trade cooperation between China and ASEAN, CAEXPO is considered a prominent venue for ASEAN companies to present their products in China. Thanks to the platform, it is more convenient and effective for ASEAN countries to introduce their specialties to Chinese enterprises and consumers, and help their products, including Vietnamese coffee, reach and develop in the Chinese market.

At the first CAEXPO, the distributor of Trung Nguyên Legend participated in the exhibition with a well-known local coffee brand, feeling nervous but optimistic. Now, the company's coffee has successfully opened up sales channels in the Chinese market through this platform, and its brand G7 Coffee has been the top-selling coffee at the CAEXPO for many years. Multiple products have successfully entered various e-commerce platforms and offline supermarkets in China, and a Chinese branch has been established in Shanghai with a marketing team of over 100 people.

As seen from the past CAEXPOs, Vietnamese coffee has been represented as a regular attendee at the event. Entering the Vietnam pavilion, one can see a variety of coffee brands on display, with G7 coffee at the front of the line and Civet coffee having become a sought-after product favored by Chinese consumers. For Vietnamese coffee distributors, the CAEXPO is an important step for Vietnamese coffee to get into the Chinese market. "The CAEXPO has greatly helped G7 coffee go from being unknown to racking up hundreds of millions of yuan in sales annually in China," said the sales manager of representative Trung Nguyên Legend Oversea Flagship store in Shanghai. He added that attending the annual CAEXPO made him feel at home.

Vietnamese coffee is like a silky ribbon of friendship, connecting the Chinese market with the Vietnamese market. The head of the international marketing department of Trung Nguyên Legend said in an interview, "We participate in CAEXPO to look for sales agents and Chinese partners and introduce our products to the whole Chinese market." The director of the Chinese market of Vinacafe said that they need to work together with Vietnamese merchants to promote their brand through CAEXPO in such a large Chinese market, and only with good quality and reputation can they create a sound market for Vietnamese coffee in China.

The year 2023 marks the 20th anniversary of the establishment of the strategic partnership between China and ASEAN and the 20th anniversary of the founding of CAEXPO. Therefore, the successful hosting of the event is of great significance. This year will also embrace the 15th anniversary of the establishment of the comprehensive strategic cooperative partnership between China and Vietnam. "The 20th CAEXPO will create favorable conditions for Vietnamese quality distinctive products, especially agricultural products, to enter the Chinese market, and will help Vietnamese investors and enterprises find investment cooperation partners." Wei Zhaohui, Secretary-General of the China-ASEAN Expo Secretariat, told reporters on April 1 when she accompanied the Guangxi delegation to visit Vietnam.

The Vietnamese products entering the Chinese market are more than coffee. Vietnamese entrepreneurs are optimistic about seeking opportunities in the large Chinese market as China relaxed COVID-19-related entry restrictions and pinning their hopes on the market to boost the economic recovery of Vietnam's market in the post-pandemic era. With the resumption of cross-border tourism between China and Vietnam, tasting and buying Vietnamese coffee may once again become a must-do for Chinese travelers to Vietnam. At the 20th CAEXPO held in September 2023, Vietnamese coffee will continue to exude an enticing aroma at the exhibition, attracting customers to stop by and have a try, even buy it. Holding a cup of coffee, one can not only taste the flavor of Vietnamese coffee, but also feel the close economic and trade cooperation between China and Vietnam.