A Superpower of Robusta Production. Vietnam, was the second largest coffee producer, accounting for roughly 20 percent of the world coffee production. This result the increase of income of employment and decline the hunger rate. 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. The efforts aim to directly benefit 200,000 coffee and rice farmers by 2020. The country accounts for around 20 percent of the world's coffee output. WCR World Coffee Research . While the area which majority of the Vietnamese coffee grew was not affected by the war, Buôn Ma Thuột region, the people were. 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 regions that have resulted in the partial dismantling of … Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. In its October country report, the bank says the pace of Vietnam’s recovery firmed up in September with its industrial production index growing 4.8 percent year-on-year, compared to 2.1 percent in August. It has also provided advisory services to leading firms on supply chain management, post-harvest and warehouse management, sustainable rice platforms, and product marketing. 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. A third quarter rebound will help Vietnam meet its GDP growth target of 2.5-3 percent this year, the World Bank says. 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. Setting Up the Regulatory and Institutional Framework. We face big challenges to help the world’s poorest people and ensure that everyone sees benefits from economic growth. The Socialist Republic of Vietnam : Coffee Sector Report. The market is expected to grow annually by 10.4% (CAGR 2020-2025). 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. Over the past several decades, coffee production in Vietnam has developed as a major export-oriented industry. 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. Market Overview Vietnam Coffee Market is witnessing a CAGR 8.07% during the forecast period (2020-2025). This approach is guided by the Hamburg Principles adopted by the G20 in 2017 and builds on the substantial experience across the institution. Government 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. Coffee production in Vietnam boomed since it’s beginnings. Vietnam now is one of the most dynamic emerging countries in East Asia region. Farmers will also be better organized and attuned to the product requirements of agribusinesses. Growers in other coffee growing nations blame the recurring excess of coffee supplies on the World Bank and its efforts. 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 is the world’s second largest producer and exporter of coffee. This is coffee, but not as you know it. 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. Further analytical work followed in 2014 and 2015. Efforts to strengthen the enabling environment continue. It is designed to serve a wide range of users—from researchers seeking data for analytical studies to businesses seeking a better understanding of the markets into which they are expanding or those they are already serving. However, coffee production was disrupted due to the Vietnam War. In … To complement the various initiatives to maximize finance for development, IFC is also partnering with local banks to provide commodity traders with structured financing solutions backed by warehouse commodities as security for the loans. Coffee farmers from Latin America to Africa find that they have little reason to harvest their beans. 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. 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. Global data and statistics, research and publications, and topics in poverty and development, "We will continue using the MFD approach to improve access to finance, develop product brands, and Part 6 concludes with a summary and recommendations for further action and possible investment opportunities. 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. The country is the world’s second biggest producer of coffee production and export. In 2001 and 2002, world coffee production was estimated to be about 116 60-kilogram bags, while consumption only totaled five million bags. Going forward, better regulations will incentivize more private capital to invest in coffee and rice value chains. The Global Consumption Database is a one-stop source of data on household consumption patterns in developing countries. The Coffee segment consists of Roast Coffee… The Vietnam Sustainable Agriculture Transformation Project supports “small farm-large field” production management models, which promote the collective actions of smallholders to reduce production costs, improve product quality, and reduce transaction costs for contracts with rice mills. 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’s large production of low-priced RobustaRobusta coffee has partly contributed to fundamental change in the structure of the global coffee industry. In fact, Coffee became Vietnam’s major economic contributor. Robusta, or C. canephora, is a lower grade coffee typically sold as instant coffee. The country's crop year runs from October to September. BRIEF CONTEXT Vietnam’s coffee sector experienced explosive growth throughout the 1990s. Coffee in Vietnam – The basics. Citation “World Bank. Vietnam has become an important source of Robusta coffee for many large coffee roasters, due to its vast availability and reasonable value. 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. Base on the Hallam research, Vietnam coffee production is a strong producer, which can expand from 60 578 hectares to 463 450 hectares and coffee bean output increased from 96 000 tones to 800 000 tones, making Viet Nam the largest Robusta producer and second largest coffee producer in the world. The coffee trade is one of Brazil’s most prolific industries. Higher profitability and jobs—both for farmers and agribusiness—are the targets of this strategy to maximize finance for development. 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. Global Economic Prospects examines trends for the world economy and how they affect developing countries. 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 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. The World Bank Group works in every major area of development. Vietnam: Revenue in the Coffee segment is projected to reach US$4,845m in 2020. Prepared in consultation with the private sector, the work outlined the constraints and options for implementing ARP reforms in coffee and rice value chains. 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. If you continue to navigate this website beyond this page, cookies will be placed on your browser. IFC directly invested in private companies active in coffee and rice production, processing, and exports; and provided advisory services to firms. reached by Vietnam in about a decade. To learn more about cookies, click here. 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. ", Environmental and Social Policies for Projects, Finance, Competitiveness and Innovations Global Practice. By the 21st century coffee was only surpassed by rice as a Vietnamese export. Part 5 investigates the social and environmental impacts of coffee production, including effects on the ethnic minorities that represent a considerable proportion of coffee growers. 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. Global data and statistics, research and publications, and topics in poverty and development. Photo: Kibae Park/United Nations (CC by NCND20). Vietnam - Coffee sector report (Vietnamese) Abstract. Terraced Coffee Plants in Vietnam. Contract farming will link farmers and agribusinesses to reduce transaction costs, maintain competitiveness, and ultimately increase farmers’ revenues. First introduced by the French in 1857, the Vietnamese coffee industry developed through the plantation system, becoming a major economic force in the country. 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. Approximately 95 percent of the coffee produced in the country is of the Robusta variety. This site uses cookies to optimize functionality and give you the best possible experience. Brazil - 2,595,000 metric ton (5,714,381,000 pounds) Brazil is the world's largest coffee producer. 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. 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 … Constraints faced by private investors in agribusiness in Vietnam include high transaction costs caused by a fragmented farming sector with limited collective action at the farm level, and policies restricting international companies from sourcing products directly from farmers. East Asia and the Pacific, Vietnam 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. The World Bank was instrumental in providing financing to coffee farmers as well as other farmers in Vietnam. Additional benefits are considerable, including lower-carbon, climate-smart farming for 40,000 hectares for coffee production and 75,000 hectares of rice fields; 17,000 hectares of renewed coffee trees; and increased exports thanks to better quality raw materials. About the database. While many benefits can be attributed to the coffee sector's growth, there are also … However, according the Vietnam Cocao and Coffee Asociation, real output could be 21 million packs, … 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 PROSPECTS FOR COFFEE PRODUCTION; 5.1. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. 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. The World Bank Board of Directors has approved $315 million in credits to go toward agriculture and education development in rural communities in Vietnam, with a substantial but unspecified portion of the loan focused on rejuvenation and development of sustainable coffee production.. 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 World Bank Group works in every major area of development. The Vietnam Coffee and Cocoa Association said that water shortages last year affected around a fifth of Vietnam's coffee acreage, and output could fall 10-20 percent from the 2015/2016 season. There are no cappuccinos or … The government promoted coffee production and exports. 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. offer private sector solutions for agriculture in Vietnam. 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 . 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. Introduction: Purpose and contents of the R&R country data sheets Notes: … 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. 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. 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. 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. 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