Vietnam's Economy
Vietnam's Coffee Boom
How Vietnam became the world's second-largest coffee producer within a few decades, mostly robusta, and the effects on global prices and the environment.
Vietnam is the world’s second-largest coffee producer, after Brazil.
Rapid growth
- Coffee production expanded dramatically in the 1990s, especially in the Central Highlands.
- Government support, migration and high prices drove planting.
Robusta
Vietnam grows mainly robusta, used in instant coffee and blends.
Global impact
- Vietnam’s expansion contributed to a global coffee price crash around 2001-02, hurting farmers worldwide.
- Weather in Vietnam now moves robusta prices, as in 2024 when drought helped push prices to record highs.
Environment
- Deforestation in the highlands.
- Groundwater use for irrigation.
Domestic coffee culture
Vietnam has a strong café culture, with drinks like cà phê sữa đá (iced coffee with condensed milk) and chains like Highlands Coffee and Trung Nguyên.
Link to India
India’s coffee growers compete with Vietnamese robusta in world markets.
When Vietnam's coffee output surged around 2000, world prices collapsed, and coffee farmers from Central America to India saw incomes fall.
Vietnam is the world's second-largest producer.
- Vietnam is the world's second-largest coffee producer.
- It grows mainly robusta.
- Its expansion helped cause a 2001-02 price crash.
- Deforestation and water use are concerns.
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