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Coffee growers fight FDI business

Update: December, 01/2012 - 09:42
Employees of Thang Loi Coffee Company in Central Highlands Dak Lak Province dry coffee. Domestic coffee producers expect to receive more support to improve the quality of coffee to remain competitive with foreign-invested enterprises. — VNA/VNS Photo Quang Huy
DAK LAK (VNS)— Domestic coffee producers have called for more support to improve the quality of coffee to enable them to remain competitive with foreign-direct-investment (FDI) enterprises.

Director of Trung Nguyen Coffee Group, Dang Le Nguyen Vu, said the number of FDI enterprises joining Viet Nam's coffee market should be controlled to prevent the possibility of them dominating the domestic market and preventing local producers from building up a Vietnamese coffee brand, according to Dau Tu (Investment) newspaper.

According to Ministry of Agriculture and Rural Development statistics, FDI enterprises' market share increased to more than 50 per cent last year, rising by 40 per cent in just two years.

Currently, half of the top ten coffee exporters in Viet Nam are FDI enterprises.

Director of Dak Lak company Simexco, Le Duc Thong, said that Viet Nam mainly exported raw coffee beans of low value.

According to Vu, the coffee industry should focus on enhancing the quality of coffee while reducing the plantation costs for farmers. Substandard coffee should not be allowed to be exported as Viet Nam tries to cement its reputation as among the best robusta exporters in the world.

He called for the introduction of policies encouraging farmers to ensure the adequacy of their supply sources of coffee. He also said that the coffee industry must shift towards exporting processed beans rather than raw beans in order to add more value to the bean, pointing out that in this way Viet Nam could earn US$20 billion per year in the coming 10-15 years from coffee export, rather than the $3 billion that it makes now.

Vu called for the Government to support local enterprises with strong brands to help them expand to the world market. — VNS

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