Challenges Facing the Industry
1. Supply Chain Constraints
Vietnamese farmers face rising input costs, labor shortages, and climate-related risks. Extended droughts in the Central Highlands threaten yields, undermining the country’s capacity to meet export demands.
2. Domestic Price Pressures
While export revenues rise, local buyers and processors face challenges as higher prices squeeze margins. Small-scale roasters and coffee shops may struggle to absorb rising costs.
3. Quality & Sustainability Demands
Major importing markets, including the EU and US, are tightening sustainability requirements. The EU Deforestation Regulation (EUDR) mandates traceability of coffee supply chains. Exporters must invest in certification, digital tracking, and farmer training to remain competitive.
Strategic Responses for Exporters