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Delegate says exporting raw coffee costs Vietnam about $4,000 in value added per tonne

Delegate Le Hoang Anh said Vietnam leaves about $4,000 in value added abroad for every tonne of raw coffee it exports. He proposed broader support for deep-processing businesses.

Delegate Nguyen Cao Son speaks at a session of Vietnam's National Assembly
Photo: Dân trí / Vietnam National Assembly

On October 29, during debate on a bill on small and medium-sized enterprise development, delegate Le Hoang Anh proposed specific support for processing and manufacturing companies. He said the measures must reach businesses that create value and work in difficult areas.

The raw-material base exists, but processors are missing

Citing 2025 figures, he said Vietnam exported about $9 billion worth of coffee, while deep processing accounted for about 15%. Green coffee cost about $5,600 per tonne, compared with about $9,700 for processed coffee.

“For every tonne exported raw, we leave about $4,000 in value added abroad,” he said.

Delegate Le Hoang Anh at a session of Vietnam's National Assembly

In Gia Lai, export turnover in 2025 was about $3.44 billion, with coffee accounting for about $1.5 billion. “The raw-material base is ready and the market is open; what is missing is processing businesses,” he said.

Small processors lack land linked to production areas, cold storage, long-term capital for machinery, and funds for certification and traceability required by the European market under anti-deforestation rules.

A Ministry of Finance report identifies processing and manufacturing companies as beneficiaries, mainly through Article 22 of the draft law. The measures currently cover consultancy and certification, but not specific tools for land, long-term loans or collateral.

Hoang Anh proposed land for concentrated agricultural, forestry and seafood processing zones linked to raw-material areas, shared cold storage and logistics. He also proposed lending based on sales contracts, receivables, inventory and warehouse documents, and equal support for qualifying cooperatives.

Delegate Tran Duc Thuan called for mountainous areas to receive support across the chain from raw materials to processing, storage and sales. He said support for software, training or promotion would have limited effect without links to transport, markets and lead firms.

Upgrading production can take one to two years

Delegate Phan Thi Thuy Linh said a company may need one to two years to upgrade and meet major customers' requirements, while support often focuses on the last six months of the budget year.

Support therefore favours consultancy, training and trade fairs that can be completed within a year. Production trials and testing have not been widely implemented. She proposed allowing approved tasks to continue across budget years and linking acceptance to result milestones.

Hoang Anh proposed establishing targeted central-budget support for localities that cannot balance their budgets. Support rates should reflect each locality's ability to finance its own spending.

A good plan can still leave a company short of upfront cash

Hoang Anh proposed linking company revenue and cash-flow data with credit institutions. Tax, customs and social-insurance agencies could share data through the business information system when a company agrees and is not charged. Credit institutions would still assess applications independently.

“A coffee-processing facility with three years of transparent e-invoices could then borrow without a land title,” he said.

Delegate Nguyen Cao Son said a company with a good production plan may still lack cash to pay all costs upfront and wait for reimbursement. He proposed staged matching funds, approved materials or labour as matching contributions, controlled advances and payments by stage.

He also called for support for sampling, transport, sample storage and specialist visits in remote areas. For international value chains, periodic assessment and monitoring should be included in testing, inspection and certification support. The mechanism should reduce fundraising pressure while ensuring transparency, budget control and accountability.

Sources: Dân Trí