Unveiling the Vietnamese coffee brand
The product "High-Quality Vietnamese Coffee" has been approved as a national brand. The content for building the "High-Quality Vietnamese Coffee" brand is specified in the Framework Project for the Development of the National High-Quality Vietnamese Coffee Product, issued by the Ministry of Agriculture and Rural Development in Decision 4653/QD-BNN-KHCN dated November 15, 2017.
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| Domestic coffee market |
The overall objective of the Project is to develop a high-quality, competitive, and high-value-added coffee industry based on the synchronized application of new varieties, advanced cultivation techniques and post-harvest technologies, combined with mechanization, production reorganization, brand building, and market development to improve productivity, quality, and efficiency of coffee production and business, adapt to climate change, reduce greenhouse gas emissions, and protect the environment.
One of the key objectives and contents of this Project is to build a high-quality Vietnamese coffee brand that is competitive in the international market, ensuring that 50% of leading enterprises in the industry affix the high-quality Vietnamese coffee brand to their product packaging during transactions and sales in the domestic and international markets.
To implement brand building, the Institute of Agricultural and Rural Development Policy and Strategy was tasked with developing and registering the intellectual property protection for the "High-Quality Vietnamese Coffee" certification mark. To date, the Institute has completed all necessary documentation (including the regulations on management and use, logo, and criteria for high-quality Vietnamese coffee) and submitted the application for protection of the "High-Quality Vietnamese Coffee" certification mark for green coffee beans, roasted coffee, and ground coffee to the Intellectual Property Office in December 2022.
However, as of September 2023, the Intellectual Property Office had not yet granted a trademark protection certificate for "High-Quality Vietnamese Coffee." The main obstacle is the lack of a legal framework and a national name management system. The Ministry of Science and Technology was tasked with researching, amending, and supplementing legal regulations on the use of national names, but this has not yet been done. Because the "High-Quality Vietnamese Coffee" trademark has not yet been protected, the project to promote and advertise the "High-Quality Vietnamese Coffee" brand in conjunction with industry brands and geographical indications, submitted by the Ministry of Industry and Trade to the Prime Minister, has also not been approved.
Investing in brand building – a necessary step.
According to Mr. Nguyen Quang Hung , Director of Napoli Coffee Production, Trading and Import-Export Joint Stock Company, there are approximately 10,000 coffee businesses nationwide. While the number of coffee businesses is large, the development of Vietnamese branded coffee for the global market remains limited.
"Over the years, I've traveled to about 100 countries around the world and seen very few Vietnamese coffee brands. I occasionally come across Trung Nguyen coffee on supermarket shelves in some countries. Compared to Thailand and Malaysia, the market coverage and reach of Vietnamese coffee brands are very limited," said Mr. Nguyen Quang Hung.
Given the above situation, many believe that Vietnamese coffee businesses need to focus on brand building to increase value and enhance the position of Vietnamese coffee products in the international market.
Ms. Do Viet Ha, Commercial Attaché of the Vietnamese Trade Office in Germany, recommended that businesses focus on building brands that honestly convey the story of product origin and processing methods to consumers. They should leverage the advantages of economic agreements to introduce coffee to the EU market in general and Germany in particular. They should also plan to participate in annual international trade fairs held in Germany.
Expressing his views on this issue, Mr. Gruber Alexander Lukas - Director of Saigon Professional Roasting Services Joint Stock Company, representative of the Alambe' Finest Vietnamese Coffee brand - stated that Vietnamese coffee is known for its large quantity and low price. Therefore, it is necessary to invest in brand building, creating unique quality, and classifying coffee into good, premium, and standard grades, etc. Only then will coffee exports have added value.
Vietnam's coffee exports have seen continuous growth in value in recent years, but this growth is mainly in green coffee beans – accounting for over 90% of production and approximately 85% of value. While exports of instant and processed coffee have increased, they only account for about 15% of the country's total coffee export value.
Currently, very few businesses are branding Vietnamese coffee for export to the world. Therefore, investing in building a brand for Vietnamese coffee is essential. As the brand strengthens, the value of the coffee will also improve. In addition, businesses need to work together with farmers to link the value chain from producer to final destination. To develop and increase the value of Vietnamese coffee, it is necessary to focus on investing in production to meet the requirements of consumer markets, especially demanding ones.
Regarding this matter, Mr. Nguyen Hai Nam, Chairman of the Vietnam Coffee and Cocoa Association, said that the Association is planning to build a national brand for Vietnamese Robusta coffee to contribute to increasing the value of Vietnamese coffee in the international market.
“In Vietnam, Robusta coffee accounts for 94% of the area and production, while Arabica coffee only accounts for 6%. Currently, the world depends on Vietnamese Robusta coffee, so this is a good opportunity for us to build a brand. In the future, global consumers will know that they are consuming coffee grown by Vietnamese farmers,” Mr. Do Ha Nam shared.
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