Bringing Vietnamese Coffee to the World

3:51:37 PM | 12/9/2008

Two Trung Nguyen coffee houses in Singapore are seen as the efforts of Vietnamese people to bring the drink to the world.
In early September 2008, Trung Nguyen Coffee Company opened the first coffee house in Changi International Airport in Singapore, its first foreign establishment. On November 19, the second facility was opened in Liang Court Shopping Centre, adjacent to renowned Clarke Quay in Singapore.
Approbatory Singaporean consumers
Mr Dang Le Nguyen Vu, General Director of Trung Nguyen Coffee Company, said: There are two reasons for the confidence in pouring a big amount of cash in Singapore in this hard economic context. Firstly, Trung Nguyen has gathered sufficient internal forces to penetrate foreign markets and compete with famous brands in Singapore.
Secondly, the demand for coffee will not decrease despite economic difficulty because this drink is indispensable in the daily life of coffee lovers. Into the bargain, the Vietnamese coffee has better quality and qualification than others: The taste of coffee grown on the basalt soil in Buon Ma Thuot. The quality of Robusta coffee is better than that coming from the original land of this drink. Last but not least, the coffee-making formula is very special to have a special drink.
Many Vietnamese people in Singapore attended the opening ceremonies with the pride of a coffee coming from their homeland. Many Singaporean companies and international reporters were also present at the opening.
At the international food and drink trade fair in Singapore from November 14 to 18, Trung Nguyen was the unique Vietnamese trademark. During the event, Trung Nguyen booths always had queues of visitors waiting to taste the Vietnamese specialty.
Ending paradox to Vietnamese coffee
Mr Dang Le Nguyen Vu said in the first quarter of 2009, Trung Nguyen would open two new coffee houses in Marina Square shopping centre and in the second terminal of Changi International Airport in Singapore. In the future, Trung Nguyen expects to operate 18 coffee houses in Singapore.
The Trung Nguyen’s enterprising investment for coffee house chain is remarkable because Vietnam is very weak in processed coffee although it is the world’s largest exporter of coffee beans.
According to the Vietnam Coffee and Cacao Association (Vicofa), Vietnamese exporters shipped their coffee beans to 75 countries and territories in the world, instant coffee to 25 markets, roasted ground coffee to six markets and other processed coffee to 16 markets in the 2007 - 2008 crop. However, Mr Luong Van Tu, Chairman of Vicofa, said: In general, the volume of exported processed coffee still account for a minority and it is mainly sold in the home market. Vietnam is famous for exporting raw coffee only. Even, several companies have to import processed coffee. According to statistics from the General Department of Customs (GDC), they spent US$7.5 million on imported coffee so far this year, mainly roasted, ground and instant coffee from famous makers like Lavazza, Expresso Ethiopia, Expresso Colombie, Expresso Guatemala, Sumatra and Illy
According to Mr Luong Van Tu, the top concern of the Vietnamese coffee industry is to renovate processing phase and increased the production of value-added coffee. Under the project concerning the improvement of Vietnamese coffee competitiveness recently approved by the Ministry of Agriculture and Rural Development, the coffee industry will adjust product structure to increase the export of coffee kernels to developed markets. By 2015, up to 50 - 70 per cent of Vietnamese coffee will be transacted at world-famous high-quality coffee trading floors. The deeply processed coffee will accounts for 20 per cent by 2015 and 30 per cent by 2020. In addition, it will focus on improving product quality and diversifying products and building Vietnamese coffee trademarks on the global markets. Accordingly, the ministry will encourages both domestic and foreign enterprises to invest in instant, roasted and ground coffee. By 2015, the production output will reach 10,000 - 15,000 tonnes a year, including 50 per cent for export. Together with quality improvement, the Vietnamese coffee industry and every enterprise need to accelerate the construction and development of Vietnamese coffee trademark to occupy strong foothold on the global markets.

T.N