Vietnamese Coffee Research Articles

The European Union’s Deforestation-free Supply Chains Regulations: Opportunities and Challenges for Vietnamese Coffee

The European Union’s Deforestation-free Supply Chains Regulations: Opportunities and Challenges for Vietnamese Coffee

Determinants for Supplier Selection Based on Hybrid Grey Theory: Case Study of the Vietnamese Coffee Industry

Coffee is not merely a refreshing beverage but also invigorates people, provides relaxation, contributes to human health, and fosters closer social connections. Coffee is one of the most widely consumed beverages worldwide and the most traded commercial commodity. Moreover, the rapid development of the Vietnamese coffee industry caused some concerns due to its insufficient performance and the fierce competition within the industry. It is significant to establish an efficient supply network; notwithstanding, supplier selection has always been a challenge for companies. Therefore, this paper employs a hybrid model to determine the supplier selection criteria, a vital factor for a manufacturer under practical operating conditions. Firstly, a combined model of Grey forecasting and the Grey Fourier series is applied to forecast future rainfall and temperature data for six consecutive years. Secondly, based on the criteria, strategies, and buyer requirements, the single-objective linear programming model helps identify the outperformed suppliers. The results found that prices and location change are determinants of supplier selection, and supplier shortage is an enormous barrier for the industry. In this study, these price forecasts allow supply chain management to make informed decisions about inventory levels, transportation routes, and resource allocation to ensure smooth operation and optimize coffee supply chain management.

The Factors Influencing the Export Activities of Coffee Products: A Typical Study in the Export of Vietnamese Coffee to the EU Market

Objective: With the rapid growth of international business activities and globalization, exports play a crucial role in determining the survival and growth of enterprises. Although coffee is not a necessity, it is always considered one of the potential industries for sustainable development and export. In Vietnam, coffee is one of the key export commodities and the second-largest agricultural export. Theoretical Framework: The study uses linear regression models to test the proposed research hypotheses. Method: The study uses SPSS software to test the hypotheses. The study uses ANOVA indexes and regression coefficients to evaluate the indicators. Results and Discussion: The coffee industry plays a significant role in the national economy, and the development of coffee export production has, is, and will continue to contribute greatly to the Vietnamese economy. Research Implications: The EU is a large coffee consumption market, accounting for about one-third of global consumption. From 2010 to 2023, the EU coffee market remained stable, with slight growth at an average annual rate of 0.3% in volume. Originality/Value: The signing of the Free Trade Agreement between Vietnam and the EU also opens greater opportunities for Vietnamese coffee exports to this market. With the commitment to eliminate tariffs under the EVFTA, Vietnamese coffee exported to the EU will have 93% of tariffs reduced to 0% immediately upon the agreement taking effect.

Study on Supply Shain Financing Scheme of A Vietnamese Coffee Company in China

This paper takes G7 Coffee, a Vietnamese coffee company, as an example to design a supply chain financing scheme suitable for the company. First of all, on the basis of explaining the concept of supply chain, supply chain financing and other related concepts, supply chain management theory, supply chain financing model, fuzzy comprehensive evaluation model and other theoretical foundations, based on the financing situation of a Vietnamese coffee company G7 coffee in China, combined with the financing problems of the company and the company's capital needs, The feasibility of supply chain financing of G7 Coffee in China for a Vietnamese coffee company is proposed. Secondly, this paper introduces the evaluation method of supply chain financing scheme of G7 Coffee in China of a Vietnamese coffee company. Finally, on the basis of clear objectives and principles of financing scheme design, an evaluation system of supply chain financing mode of a Vietnamese coffee company based on AHP is constructed. The applicability of accounts receivable supply chain financing, inventory supply chain financing and prepayment supply chain financing adopted by the company is further analyzed by fuzzy comprehensive evaluation method. The fuzzy comprehensive evaluation results show that The accounts receivable financing model is the best financing model for the supply chain financing of G7 Coffee in China of a Vietnamese coffee company. In order to ensure the smooth implementation of the supply chain financing plan of a Vietnamese coffee company G7 Coffee in China, this paper proposes to strengthen the guarantee from three aspects: financial system, credit management and risk control.

Antifungal activity against Candida albicans biofilm of Coffea robusta monofloral honey from Vietnam

Coffee (Coffea robusta) flower honey is one of the highest-yielding kinds of honey in Vietnam. Nevertheless, there is little research on the antifungal activity associated with this type of honey. Therefore, this study was conducted to investigate the antifungal activity against C. albicans of Vietnamese coffee monofloral honey and its potential effects on biofilm formation. This study was conducted using the broth microdilution method. The results showed that coffee flower honey was resistant to Candida albicans strain with minimum inhibitory concentration (MIC) and with minimum fungicidal concentration (MFC) values of 50% and 70% (w/v), respectively. No change in the antifungal activity of honey and the antifungal agent (Amphotericin B) against the C. albicans strain occurred after five consecutive exposures. When using SEM, honey at MIC (w/v) strongly affected the two stages of C. albicans biofilm formation. The surface structure of the biofilm, deformed, distorted, and atrophied phenotypes impacted by honey were also observed. Expression of transcriptional-level genes involved in biofilm formation, quorum-sensing, and stress survival was analyzed by RT-qPCR in honey-treated and untreated biofilms. The present study showed the antifungal activity of Vietnamese coffee flower honey against C. albicans.

Evaluating the Growth and Development Ability of 5 Late Ripening Varieties of Coffee (Coffea Canephora Pierre) in Lam Dong – Vietnam.

Purpose: To improve the quality of Vietnamese coffee, many synchronous solutions are needed can solve problems such as: Technical, economic, management... In which, changing the varieties of coffee to suit current weather conditions has contributed significantly to improving yields and quality.
 Methodology: Experiments and the comparison among 5 late ripening varieties of coffee was implemented in Lam Dong province (TR10; TR14; TR15; TR16; TR6) .The experiment was carried out RCBD with 5 treatments, and 3 replications and three replication. TR10, TR16, TR14, TR15 are suitable for the conditions of Bao Loc, Lam Dong.
 Findings: The TR10, TR14, TR15 Robusta in the commercial stage have a yield of > 4 tons of core/ha, the yield between trees in the same line is quite uniform, the rate of R1 type seeds is > 99%, and there is no rust disease.
 Unique Contributor to Theory, Policy and Practice: It is recommended that the authorities consider and allow large-scale trial production in some areas with suitable conditions in Lam Dong province

Export competitiveness of Indonesian coffee in the United States market

Indonesia’s economic growth has slowed down during the pandemic. Coffee is a foreign exchange-producing agricultural commodity for Indonesia and has become a pillar of the national economy because of its contribution to the gross domestic product. The purpose of this study was to analyse the competitiveness of Indonesian coffee exports in the United States market. The methods employed included the Revealed Comparative Advantage, which can measure export competitiveness comparatively, and the Export Product Dynamic method to analyse and map the position of export competitiveness. The analysis results were also measured to compare the export competitiveness of Vietnamese coffee. The findings showed that Indonesian coffee and Vietnamese coffee in the United States market have a value above 1, proving that both have export competitiveness advantages. The average Revealed Comparative Advantage value of Indonesian coffee is higher than that of Vietnamese coffee, meaning that Indonesian coffee exports are superior to Vietnamese coffee exports to the United States. Meanwhile, the results of the Export Product Dynamic analysis showed that the competitiveness of Indonesian coffee exports is in the position of Lost Opportunity, where the position has shifted from the pre-pandemic position, namely Retreat. Meanwhile, the competitiveness of Vietnamese coffee exports was in the Rising Star position, which shifted from the previous position of Lost Opportunity. Lost Opportunity of Indonesian coffee shows that the strength of Indonesia’s coffee commodity business is weak, but commodity exports are still competitive. The analysis results indicated that even though Indonesia’s coffee has export competitiveness, it is not competitive enough in the United States. This study provided an overview of the export competitiveness of Indonesian coffee in the United States, which can be used as a basis for determining strategic steps in an effort to dominate the market to obtain trade benefits

Are Vietnamese coffee farmers willing to pay for weather index insurance?

Global coffee production experiences detrimental impacts of climate change. Weather index insurance (WII) offers an opportunity for coffee farmers to mitigate the climate risks in production and motivate them to adopt sustainable farming practices. This study explores Vietnamese farmers' willingness to participate and pay for WII schemes for coffee. A contingent valuation survey was employed on a sample of 151 farmers from the two largest coffee production areas: Lam Dong and Dak Lak provinces. The findings revealed that farmers are willing to pay, on average, US$92.30 per policy for a premium on insurance products. We also found that farmers in Lam Dong are willing to pay more than those in Dak Lak despite fewer Lam Dong farmers being willing to participate in the insurance schemes. The majority of farmers prefer drought to be insured within 3 months of coffee blossom, from February to April. Factors influencing farmers' decision to join the insurance schemes include education, farm size, climate change perception and experiences, and insurance knowledge. The study suggests that the current coffee industry co-contribution to insurance premiums could potentially be reduced by up to 90 %. However, caution must be taken when adjusting co-contribution, as farmers' willingness to pay is heterogeneous. In addition, raising awareness of the impact of climate change on crop production and insurance knowledge training is critical to ensure an increased number of participants in the schemes. The recommendations from this study will contribute to improving the design of coffee insurance products that are tailored to local needs and preferences and will assist in upscaling the products’ outreach in the Coffee Climate Protection Insurance Program.

Exploring the relationship between willingness to participate in insurance and bank loan approval for coffee farmers in Dak Lak Province: A Bayesian Model Averaging approach

This study has employed Bayesian Model Averaging (BMA) to identify the most suitable model for assessing the eligibility of Vietnamese coffee farmers for bank loans, effectively avoiding overfitting and ensuring that only the most crucial variables were considered in the analysis. Findings from the study indicate that factors such as ethnicity, labor, yield, land ownership, and willingness to participate (WTP) in coffee insurance significantly influenced the farmers' eligibility for bank loans. Moreover, the study suggests that banks and insurance companies should also take into account additional factors, such as socio-economic context, household size and composition, land ownership, and risk-sharing programs, to enhance access to credit. With this valuable information, banks can forge partnerships with insurance companies to craft highly effective loan programs and insurance products tailored to Vietnamese farmers' unique needs. The simplicity, practicality, and strong predictive ability of the model chosen by BMA make it a valuable tool for guiding policy decisions.

Digital and circular technologies for climate-smart and sustainable agriculture: the case of Vietnamese coffee

This comprehensive article addresses the pressing challenges confronting the global agriculture, primarily driven by climate change and resource constraints. With a focus on promoting climate-smart and sustainable agricultural practices, the study explores the transformative potential of emerging technologies, e.g., the innovative use of digital technologies like Internet of Things, Artificial Intelligence, and Blockchain, showcasing real-world examples of their benefits, and circular technologies, e.g., waste-to-value practices. The challenges of population growth, climate change, environmental impact, and the plight of smallholder farmers are elucidated. Climate-Smart Agriculture initiatives supported by the World Bank Group demonstrate practical efforts in addressing these challenges, aligning with sustainable development goals. Here, we introduce an innovative and smart agriculture (INNSA) platform for the creation and operation of sustainable coffee value chain in Vietnam as a case of study. Thought-provoking questions for future research conclude the review, encouraging interdisciplinary collaboration. In summary, this article provides a compelling case for adopting sustainable agricultural practices through digital and circular technologies, offering a roadmap for global agriculture’s transformation and resilience in the face of climate change.

Структурные уровни глобальной экономической системы и цифровая трансформация кофейной индустрии Вьетнама

Agriculture is one of the eight important economic sectors identified by the Government of Vietnam as requiring digital transformation in accordance with Decision 749/QD-TTg dated June 3, 2020, as an integral component of the digital economy development strategy in the context of globalization. Coffee is an agricultural product that has high economic value and is a key export product with an annual export turnover exceeding US$3 billion for the Vietnamese economy. Entities involved in the coffee industry, namely farmers, coffee businesses and government, are key players in the digital transformation process. Each entity has different resources in terms of capital, technology, labor levels and production and business goals, but between them there are always intermediate levels, closely linked by economic interests in the development of the coffee industry. To realize the digital transformation of the Vietnamese coffee industry, it is necessary to identify the factors influencing the implementation process. Therefore, the purpose of this study is to analyze the relationship between the main structural levels of the system under study, the resources and goals of the participants, and the intermediate levels in the global economic system to identify the factors influencing the digital transformation of the Vietnamese coffee industry. The results of the study show that in order for the Vietnamese coffee industry to continue to develop and be able to realize digital transformation, it is necessary to focus on the nano-level of the economy and make special demands on the degree of coherence and goals of economic and social policies at all levels of government. Significant barriers to digitalization for farmers need to be addressed through the effective implementation of policies to support concessional loans for the purchase of machinery and technologies for coffee production. To effectively apply digital technologies in production, it is necessary to have a sufficiently large area of ​​land and to encourage farmers to cooperate. Policies should be formulated to encourage the development of agricultural cooperative models to expand coffee plantation area in line with high-tech applications, large enterprises should strengthen their connections and provide more support to coffee farmers to create a sustainable source of high-quality raw materials.

ThIRST: Targeted IRrigation Support Tool for sustainable coffee production

The Central Highlands of Vietnam is an important Robusta coffee growing region. However, the region is facing climate change impacts from rising temperatures and irregular rainfall, while Vietnamese coffee farmers predominantly rely on irrigation from heavily depleted aquifers. To continue productive and sustainable growth, this system requires an innovative approach to meet this hydrological challenge. Here we propose a user-friendly tool, which aims to support coffee farmers’ irrigation decisions, through the Targeted Irrigation Support Tool or ThIRST. ThIRST combines seasonal forecasts, on-farm metrics, and farmer’s expertise. The research comprises baseline (n = 400) and endline (n = 237) surveys of coffee farmers in Đắk Lắk and Lâm Đồng Provinces. Through the surveys, farmers’ irrigation needs and the applicability of the tool are evaluated. Despite low smartphone usage for farming advisory, the results show the tool allows coffee farmers to continually achieve water-use efficiency and adapt to climate variability. Involving farmers in the design, production and evaluation of climate services can improve the trust and uptake of agro-advisories and the way this information is communicated.

Эффективность государственной политики в развитии вьетнамской кофейной индустрии

Vietnamese coffee has been exported since 1990, after the country reformed its economic management mechanism in 1986. Since 2000, Vietnam has been the second-largest coffee exporter in the global market. Annual foreign currency income from coffee exports has been around 3 billion US dollars. 600,000 small-scale farmers are the main coffee producers, whose production accounts for 95% of the total annual volume. Faced with difficulties, especially capital shortages, coffee growers tend to liquidate old coffee plantations because they do not have the means to renovate them. Although the government has many supporting strategies, they haven’t been truly effective in practice. According to research from 1990 to 2000, government policy has mainly been aimed at encouraging coffee processing plants without any support from the producers themselves. Since 2000, government policy has been aimed at supporting the capital investment of farmers in the renewal of coffee plantations, but many of them were not able to receive it due to the presence of inconsistencies and duplication in it, which reduced its effectiveness. Private and non-governmental producers’ coffee support policies were more effective than government policies. No research was done to evaluate the effectiveness of government-supported policies in the development of Vietnam’s coffee industry. Therefore, the purpose of this study is to examine the effectiveness of government support policies in promoting the growth and development of Vietnam’s coffee industry. The research findings indicate that coffee farmers and businesses do not receive any direct financial assistance from the government other than the tax on agricultural land. Coffee farmers primarily rely on non-governmental coffee companies and cooperatives for support, and they hardly destroy coffee to replace it with other crops. This demonstrates that adequate support for coffee production is extremely necessary, but government support policies for coffee producers aren’t being implemented in practice.

Analisis Daya Saing Ekspor Biji Kopi Indonesia dan Vietnam di Pasar Amerika Serikat

Coffee is one of the products from Indonesia's leading agricultural sector. Coffee participates greatly in Indonesia's export activities, especially to the United States. But so is Vietnam. The purpose of this study was to analyze the competitiveness of Indonesian and Vietnamese coffee beans in the United States market as the largest importing country for Indonesian coffee beans. The research method used is panel data analysis taken from secondary data. The analysis uses two methods, namely Revealed Comparative Advantage (RCA) analysis and also Constant Market Share Analysis (CMSA). The results show that Indonesia and Vietnam have a comparative advantage in several types of coffee commodities. In general, the results from the CMSA also show that the competitiveness of Indonesian coffee is positive, indicating that Indonesia is able to take a share of the coffee bean market in the 2016-2018 period.

Coffee Biopolitics in Vietnam

This article considers the biopolitics of coffee in contemporary Vietnam. Drawing on Vietnamese food safety manuals and coffee processing educational materials, ethnographic research, and recent food safety scandals covered in state media, the article argues that for the Vietnamese state, managing coffee and its microbial matters is about managing people rather than the environment, infrastructure, or export standards in the Vietnamese coffee industry. Commodity coffee production and industrial processing perpetuate food safety scandals, becoming part of the state’s biopolitical strategy to maintain order, safety, and composure in the industry.

Simultaneous Determination of Caffeine and Chlorogenic Acid in Vietnamese Coffee Products: First-Order Derivative Spectra and HPLC-DAD as a Comparison

Simultaneous Determination of Caffeine and Chlorogenic Acid in Vietnamese Coffee Products: First-Order Derivative Spectra and HPLC-DAD as a Comparison

A portable colorimetric tool using a smartphone camera applied for determining total phenolic contents in coffee products

In the present study, a self-designed colorimetric box equipped with a smartphone as an emerging analytical approach was designed to determine the total phenolic contents (TPCs) in coffee. The formed blue complex between the phenolic compounds and Folin-Ciocalteu reagent was measured its color intensities using RGB (red, green, blue) color system. Different parameters related to the photo capturing were investigated, i.e., the distance between the smartphone and sample holder, constant illumination inside the box, and the reaction time. The method performance based on three color channels (R, G, and B) was evaluated and agreed with Appendix F of AOAC (2016). Different sensitivities among three color channels were achieved, and the linear ranges were wide, from 10.0 mg GAE L–1 up to 120.0 mg GAE L–1 for the B channel, which was compatible with various coffee types (GAE: gallic acid equivalent). No statistical difference between the smartphone-based methods and standard Ultraviolet-visible (UV-Vis) was observed by t-test (P = 95%). Various advantages were obtained, e.g., simplicity, portability, low-cost operation, and easy accessibility for producers and consumers to test for the raw materials, intermediate and final products. The proposed method was applied to several specific roasted ground coffee products from Lam Dong Province (Vietnam) in the context of the limited scientific data on the internal composition of Vietnamese coffee. The results demonstrate that the TPCs depend on coffee varieties, i.e., Robusta exhibits higher TPCs than Arabica, and roasting levels during the processing, i.e., dark mode generally performs the lowest TPCs, due to the thermal decomposition and formation of different phenolic compounds by Millard reactions.

Dynamics and Economic Efficiency of Digital Transformation of Vietnam’s Coffee Industry

Coffee is Vietnam’s main exported product. It accounts for approximately 90% of the country’s annual exports. In the beginning of the 20th century, Vietnam was the second largest world exporter of coffee after Brazil. However, the quality was low, and the product lost out in price. The economic efficiency of production and processing was not high because of traditional technologies which were used, so the contribution to the country’s economy was considerably lower than it could be with the use of digital innovations. Currently, there are no completed studies of reasons for the low efficiency of Vietnam’s coffee production and processing, and of the analysis of innovative transformations’ dynamics. Therefore, the purpose of the study is to reveal the role and advantages of innovative digital technologies in coffee production and determine their economic efficiency. The results of the study suggest that over the past two decades, the global “coffee” market industry has expanded significantly; the demand for coffee grew by 65%. That is the main driver of development and a source of income for more than 12 million farms (more than 25 million families) in producer countries. The manual coffee production used in Vietnam cannot compete with modern digital technologies of countries that are leaders in the coffee market (Brazil, India, Thailand, etc.). The experience in introduction of technologies with international certification according to product quality standards on the area of 125.785 hectares in 2017, in the provinces Daklak, Lam Dong, Gia Lai and Kon Tum showed an increase in productivity by 10–30%. In the structure of Vietnamese coffee exports, 95% is green coffee, so export income is three times lower than the cost of processed coffee beans. Thus, the application of innovative digital technologies of cultivation and processing is a vital factor in the Vietnamese coffee industry. The result of their introduction will be sustainable development of coffee production, competitiveness growth of Vietnamese coffee products in the world market.

The fluctuation linkages and price volatility risk on agricultural commodity market: Evidence from Vietnamese coffee

This paper uses the DCC-GARCH and Value at Risk (VaR) model to analyze the fluctuation, linkage, and price volatility risk among coffee price series in the period of 2004 - 2020. In terms of the fluctuation, the study points out, the volatility of Vietnamese coffee price and the price of Robusta coffee in two markets were affected by two ARCH terms and GARCH terms at 1 percent level. Meanwhile, the coffee price of Brazil and Colombia is only impacted by the ARCH term. The linkage between Brazil and Colombia is the biggest. The average coefficient linkage among Vietnam with two main competitors is relatively small. In terms of price volatility risk, the price volatility risk of Vietnamese coffee is the smallest and the biggest risk is belonging to Brazilian coffee price. The results obtained would be a valuable reference for stakeholders, policymakers, coffee processing and exporting enterprises, and coffee farmers to clearly understand the fluctuation and linkage among coffee export price series, and thereby have appropriate and effective solutions and strategies in price volatility risk management to sustainable development.

Some Insights Into Effective Demand Planning

Demand planning enables organizations to manage their and their partner supply chain processes. We introduce and evaluate the demand planning process, including the aspects of goal formulation, forecasting techniques, information source, forecasting and decision making, and synchronizing supply with demand. We, especially, show its applicability and evaluation in a Vietnamese coffee supply chain context, which also provides insights for general supply chain and organizational practices, especially in emerging economies. We find that the demand planning relates strongly to cost and delivery performance. There is greater evidence that demand planning is not only valuable but has multiple important dimensions that managers and organizations need to be concerned within its implementation. We provide some practical insights into the design of demand planning as well as issues that organizations may face.