Vietnam’s Coffee Exports in the Global Coffee Market: An Analysis of Competitiveness, Constraints, and Strategic Reforms

Vietnam’s coffee industry, a cornerstone of its agricultural economy, has achieved remarkable growth as the world’s second-largest producer and exporter. In 2023, Vietnam exported approximately 27 million bags of coffee valued at 4. 24 billion, with an average price increase of 14. 6%. Using International Market Share (IMS), Revealed Comparative Advantage (RCA) indices, and comparative advantage theories, this study analyzes Vietnam’s role within global coffee trade dynamics. However, its global competitiveness remains limited due to low export value, quality shortcomings, and structural inefficiencies. From 2022 to 2024, Vietnam’s RCA significantly increased from 5. 8 to 8. 7, indicating a substantial improvement in comparative advantage, despite long-standing challenges. Similarly, Indonesia’s RCA surged from 2. 1 to 4. 5, suggesting shifting dynamics in regional competitiveness. In terms of international market share, Vietnam consistently maintained a high competitiveness level, with a market share ranging from 16% to 22%, second only to Brazil. This study identifies critical constraints in Vietnam’s coffee sector and proposes strategic reforms to enhance value addition, sustainability, and global market positioning. Findings reveal that despite high productivity, the sector is constrained by reliance on low-grade robusta beans, outdated processing technologies, limited investment, and weak marketing. These issues hinder quality improvement and value chain development. The study recommends diversifying into specialty coffee, upgrading processing infrastructure, strengthening marketing strategies, and aligning government policies toward sustainable, high-value production. Insights from Vietnam’s challenges and reform pathways offer valuable lessons for China’s coffee-processing industry and broader agri-export sectors seeking to enhance global competitiveness.