How did Việt Nam become the second biggest coffee producer in the world?

March 13, 2025 - 13:51
Việt Nam’s rise to the top of the global coffee market has been, in world history terms, rather quick. From humble beginnings in the 1800s, Việt Nam is now seen as one of the best coffee markets in the world, with many global manufacturers relying on locally grown coffee.

by Ray Riches *

Việt Nam’s rise to the top of the global coffee market has been, in world history terms, rather quick. From humble beginnings in the 1800s, Việt Nam is now seen as one of the best coffee markets in the world, with many global manufacturers relying on locally grown coffee.

Back in the 9th century in Ethiopia, a farmer was watching his goats and noticed that after eating berries from a particular tree, the goats would have more energy and change their behaviour. This tree, a native coffee tree, went on to become the most consumed product in the world 1,000 years later.

Tourists at a cafe in Train Street in Hà Nội enjoying coffee. Photos courtesy of Ray Riches

Ethiopia is still growing coffee, but Brazil holds the title of number one in the coffee world. Vietnam has continued to rise over the past few decades and now firmly holds the number two spot in coffee production as of 2024.

The French introduced Việt Nam’s first coffee plants in the 1800s. France had a love of coffee but was unable to produce its own. In the high country in the central and southern parts of Việt Nam, the growing conditions were perfect, and this set a pathway for a coffee industry to be born in Việt Nam. Unfortunately, most of the coffee was shipped back to Europe at that time, and it would be some time before Việt Nam adopted the culture of consuming the world’s number one beverage.

Fast forward to the early 1900s, and Vietnam experienced some 60 years of massive challenges. Both globally and locally, conflict and economic hardship saw the coffee industry in this country grind to a halt. By the late 1970s, the coffee grown in Việt Nam was little more than enough to share locally, with export markets no longer interested due to the low volumes being cultivated, among other factors.

But that all changed in the early 1980s. Europe had, for centuries, had a passion for coffee. All throughout the continent, coffee has become a key part of culture and daily life. The only problem was that, especially in the north of Europe, the climate was not suited to growing coffee trees. Back then, Germany was divided into East and West and the East was a very cold country with sub-zero temperatures during the winter months, but those living there loved drinking coffee.

Special Vietnamese filter coffee with sweetened milk at a cafe in District 1 HCM City.

Over the years preceding 1980, East Germany tried desperately to find alternatives to coffee to support the community, but attempts to create substitutes failed. With Việt Nam now looking forward to recovery and economic development, East Germany saw an opportunity to partner with the growing economy and gain access to some of the best coffee in the world. East Germany negotiated with Vietnam and came to an arrangement to support the rebuilding of the coffee industry in return for a supply of coffee.

It was a wonderful arrangement. As Việt Nam took massive leaps forward in rebuilding farming that had suffered as a result of conflict for most of the 20th century, East Germany had been developing for over 30 years and was in a position to support this re-development. From the deal, coffee farming regions of south-central Vietnam were developed. Machinery was supplied to help farmers plant new coffee plants. Infrastructure was built to support the farmers and their families, and the future was looking good. This was the start of what we have today.

But there is a small twist in this story. East Germany agreed that for the first ten years of the harvest, they would receive half the total crop in return for the investments they made. But this was never paid. The coffee tree can take from six to eight years to produce its first fruit. Due to the massive planting of new trees, no harvest was planned until 1990.

Across in Europe, the political landscape was changing, and after separating into two separate nations after World War II, East and West Germany came to an agreement to, again, become one nation. On November 9 1989, among much celebration, East and West Germany joined together to become united and this occurred one year before the planned first harvest of coffee in the coffee farms in Việt Nam.

So, in 1990, Việt Nam experienced its first harvest, and the rebirth of the coffee industry had been a success. However, that coffee that was to be sent to East Germany was never delivered because there was no country to send it to. And as they say, the rest is history.

Việt Nam grew the local coffee industry to a point where the popularity of coffee exceeded that of European countries. It became the daily go-to for workers, tourists and just about everyone in the country. Varieties of coffee emerged, with iced coffee varieties being the go-to in the sub-tropical heat of Việt Nam. And we can’t forget those truly amazing local twists of egg coffee and coconut coffee, both with their unique histories.

A western touch with a sandwich and local coffee at the Melbourne Cafe in HCM City.

Now, there is not a corner or a house in Việt Nam that doesn’t have coffee available. As a bicycle rider, I know that no matter where I go in Việt Nam, I have only to ride a few kilometres down any road, and I will find someone selling coffee. Việt Nam deserves to hold the title of the second-largest coffee producer in the world. Their commitment and progress over more than 40 years now see them not only as a big coffee producer but also as producing some of the most amazing coffee flavours found anywhere in the world.

I would say that since I first arrived in Việt Nam over 12 years ago, not a day has passed without having at least one Vietnamese coffee. I love the flavour, and I believe it is good for my health. If you are visiting Việt Nam, put coffee at the top of the list of things to experience. Once you taste it, you will never drink any other coffee.

(* Ray lives in HCM City and works as a teacher and freelancer. Apart from teaching, he is a keen runner and bicycle adventure rider. He has visited many parts of the country by bicycle and loves the smaller parts of this beautiful country. After ten years in Việt Nam, Ray has a love and passion for the smaller things and enjoys sharing his experiences with people all over the world.)

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