The Vietnam Coffee and Cacao Association (Vicofa) has proposed to the State that it launch credit support for local coffee firms competing with foreign companies.
Hanoi (VNA) 🎃– The Vietnam Coffee and Cacao Association (Vicofa) has proposed to the State that it launch credit support for local coffee firms competing with foreign companies.
The association said that local enterprises must pay interest rates of between 6.5 percent and 7 percent per year for their banking loans in Vietnamese dong, while foreign enterprises could get loans in United States dollars from foreign banks with a maximum interest rate of 3 percent per year.
Meanwhile, according to free trade agreements signed by Vietnam and its foreign partners, foreign direct investment groups have been permitted to establish companies processing, purchasing and exporting coffee beans.
Therefore, local firms are facing strong competition with foreign firms in purchasing and exporting coffee beans on the local coffee market, the association said, leading to the domestic market being dominated by foreign companies.
Nguyen Nam Hai, Vicofa Deputy Chairman, said in recent years, large foreign companies have dominated the domestic market in purchasing material of coffee because they have had funds available at cheap rates from foreign banks converted to the dong to buy material on the domestic market, while local firms were unable to do that, reported the ‘Dien dan Doanh nghiep’ newspaper.
In recent years, foreign companies have purchased 60 to 70 percent of the total coffee output in Vietnam.
A representative of Coffee Company 706, a member of the Vietnam Coffee Corporation, said the company must borrow commercial capital at high interest to improve coffee trees so the company has difficulty competing with foreign coffee companies.
The coffee enterprises have proposed to the government that it establish the Vietnam Coffee Development Fund to support coffee production and exports, as other countries such as Brazil, Colombia and India are already doing, the association said.
In fact, such a fund was expected to go into operation in 2017. The fund was scheduled to collect 2 USD per tonne of export coffee to finance its operation.
However, some experts said the fund could not meet the high demand for capital by local enterprises.-VNA
The Ministry of Agriculture and Rural Development (MARD) is carrying out its master plan to develop the coffee processing system by 2020 in a bid to increase the added value of domestic coffee products, said a senior official.
Various kinds of agricultural insurance designed for coffee trees in Vietnam were discussed in depth during a seminar in Buon Ma Thuot city, the Central Highlands province of Dak Lak on August 21.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Outcomes of ABAC III will shape ABAC’s final policy recommendations to be submitted to the ABAC-APEC leaders’ dialogue, scheduled to take place in the Republic of Korea this November.
This is the second year the magazine has released the ranking, which is based on total revenue and key financial indicators of enterprises from seven countries in the region: Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.
At the summit, publishing, tech, and media sectors will discuss emerging trends, business models, and sustainable solutions for digital publishing development in Vietnam.
This year’s “Vietnam Goods Week” marks a significant milestone as it is being held simultaneously for the first time in four locations across Asia: Japan, Hong Kong (China), Cambodia, and Malaysia, from June 19 - 22.
According to NordCham Vietnam Chairman Thue Quist Thomasen, the Vietnamese Government’s commitment to achieving net-zero emissions by 2050 is both a challenge and an opportunity for businesses to contribute to green and sustainable growth.
The analysis from an investment perspective shows that the economy’s growth has been heavily capital‑driven, yet efficiency remains low as reflected by Vietnam’s Incremental Capital-Output Ratio (ICOR) being significantly higher than global and regional averages. This underscores the imperative to enhance capital‑use efficiency.
Deputy PM Tran Hong Ha urged countries to work together to remove supply chain bottlenecks, expand market access, strengthen cooperation in smart customs procedures, mutually recognise technical standards, and eliminate unnecessary protectionist barriers to boost trade and investment.
The event has gathered over 400 exhibitors from 16 countries and territories, with more than 980 booths showcasing a wide range of products and technologies in automotive components, electronics, repair and maintenance, bodywork, accessories, and customisation.
Illustrative image (Source: VNA)
