StoxPlus is pleased to introduce Vietnam Coffee Report 2015. This issue is written by DEPOCEN and released by StoxPlus. The report presents a board range of topics, including both global market overview and Vietnam coffee market analysis. Besides an overview on Vietnam coffee market size and competition dynamics, the report also provides in-depth insights on five forces analysis, sector financial performance as well as analysis on main international markets for Vietnamese coffee. The report is believed to provide useful market information, serving both new companies, investors looking to penetrate into the market and existing coffee companies. Below are the most critical findings in this issue: 1) The world's coffee consumption continued to grow by 1.1% to the level of 8.9 million metric tons (MT) in 2014. Coffee production fell slightly in 2014 by 3.5% to 8.5 million MT mainly due to the disease outbreak in Central America. The world's total export value recovered to USD 31.6 billion in 2014 after two successive years of decline, representing a growth rate of 10.8%. The international market price of coffee bounced back in 2014, but was still lower than in 2011. European union is the leading import market with 2499 MT coffee imported in 2014, following by United States of American and Japan with 1426MT and 450MT, respectively 2) By 2019, the world’s coffee consumption forecasts to continue to grow steadily at 2.0-2.5% per annum to reach the level of over 10 million MT. The coffee production, despite fluctuating on year-to-year basis, will also grow at a CAGR of 1.0-2.0% to attain the volume of about 9.5 million MT in 2020 in order to meet the increasing demand. 3) Vietnam's coffee consumption continued to grow. About 122 thousand MT of coffee was consumed in 2014, representing an increase of 8.3% on 2013 and a CAGR of 8.2% over 2011-14. This steady growth can be attributed to the expansion of the retail coffee shops and the growth of retail food service subsectors, which serve coffee. 4) Vietnam's coffee production, despite dropping, continued to stay at high level of 1.7 million MT in 2014, about 5.6% less than in 2013. Vietnam was expected to earn about USD 3.2 billion from coffee export in 2014, increasing by 24% compared to the previous year. The coffee trading subsector in Vietnam was in unhealthy financial situation over the period 2009-13. As the world's coffee market went through a significant downturn in the period 2011-13, and only started to recover in 2014, the competition in coffee export subsector may be driven up. 5) Top five leading companies in Vietnam coffee market includes Intimex Group, Tin Nghia Corporation, Louis Dreyfus Commodities (LDC) Vietnam, Simexco Daklak, and Olam Vietnam - See more at: http://stoxresearch.com/Reports/169-vietnam-coffee-market-2015.aspx

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Vietnam Coffee Industry 2015
Author: DEPOCEN | Reviewed by: StoxPlus JSC
Date of report: 28 March 2016
Part of StoxPlus’ Market Research Report Series for Vietnam
@ 2015 StoxPlus Corporation.
All rights reserved. All information contained in this publication is copyrighted in the name of StoxPlus, and as such no part of this publication may be
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Table of Contents
Part Content Page
Executive Summary 3
1 Global Industry Overview 4 – 11
1.1 Consumption 4 – 5
1.2 Production 6 – 7
1.3 Trade 8 – 9
1.4 Price and Market Balance 10 – 11
2 Domestic Industry Overview 12 - 19
2.1 Consumption 12 – 13
2.2 Production 14 – 15
2.3 Trade 16 – 17
2.4 Export Price 18 – 19
3 Financial Analysis 20 – 22
4 Five Forces Analysis 23 – 28
5 Legal Environment 29 – 30
Part Content Page
6 Leading Import Markets 41 – 50
6.1 European Union 31 – 32
6.2 United States off America 33 – 34
6.3 Japan 35 – 36
7 Prospect 37 - 38
8 Leading companies 39 – 43
A notes on methodology 44 - 45

3. 3
Executive Summary
The world's coffee consumption continued to grow by 1.1%
to the level of 8.9 million metric tons (MT) in 2014.
By 2019, the world’s coffee consumption forecasts to
continue to grow steadily at 2.0-2.5% per annum to reach
the level of over 10 million MT.
Vietnam's coffee consumption continued to grow.
Vietnam's coffee production, despite dropping, continued
to stay at high level of 1.7 million MT in 2014, about 5.6%
less than in 2013.
Top 05 leading companies in Vietnam coffee market
includes: Intimex Group, Tin Nghia Corporation, Louis Dreyfus
Commodities (LDC) Vietnam, Simexco Daklak and Olam Vietnam
Vietnam’s coffee consumption, 2011-2014
Source: DEPOCEN

4. 4
Contents
Section 1: Global Industry Overview
1.1 Consumption
1.2 Production
1.3 Trade
1.4 Price and Market Balance

5. 5
Section 1: Global Industry Overview
Consumption
Figure 1: The leading coffee consumers
Note: Bubble size indicates coffee consumption in 2014 (Thousand MT)
Source: International Coffee Organisation (ICO) and DEPOCEN
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6. 6
Contents
Section 1: Global Apparel Industry Overview
1.1 Consumption
1.2 Production
1.3 Trade
1.4 Price and Market Balance

7. 7
Brazil and Vietnam were the two largest coffee producing countries with total volume of 4.4
million MT in 2014
Section 1: Global Industry Overview
Production
Figure 2: Leading coffee producers
Note: Bubble size indicates coffee production in 2014 (Thousand MT)
Source: ICO and DEPOCEN
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8. 8
Contents
Section 1: Global Apparel Industry Overview
1.1 Consumption
1.2 Production
1.3 Trade
1.4 Price and Market Balance

9. 9
The world's total export reached the level of 8.1 million MT
Section 1: Global Industry Overview
Trade
Figure 3: Major Coffee Exports and Imports, by Country of Origin/Destination, 2014
Source: International Trade Centre (ITC) and DEPOCEN
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10. 10
Contents
Section 1: Global Apparel Industry Overview
1.1 Consumption
1.2 Production
1.3 Trade
1.4 Price and Market Balance

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The annual average price was about USD 3423 per MT, 30% higher than in 2013
Section 1: Global Industry Overview
Price and Market balance
Figure 4: International Market Price of Coffee, 2011-2014
Source: ICO and DEPOCEN
USD/MTThis part is intentionally left blank

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Contents
Section 2: Domestic Industry Overview
2.1 Consumption
2.2 Production
2.3 Trade
2.4 Export price

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122 thousand MT of coffee was consumed in 2014
Section 2: Domestic Industry Overview
Consumption
2011 2012 2013 2014
Figure 5: Vietnam’s coffee consumption, 2011-2014
Source: DEPOCEN
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Contents
Section 2: Domestic Industry Overview
2.1 Consumption
2.2 Production
2.3 Trade
2.4 Export price

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Coffee production in Vietnam continued to stay at high level with 1.7 million MT in 2014 and
concentrates intensively
Section 2: Domestic Industry Overview
Production
Figure 6: Coffee Growing Area Distribution, 2014
Source: Ministry of Agriculture and Rural Development (MARD), Departments of
Agriculture and Rural Development (DARDs), Local Exporters, and DEPOCEN
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Contents
Section 2: Domestic Industry Overview
2.1 Consumption
2.2 Production
2.3 Trade
2.4 Export price

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Vietnam was expected to earn about USD 3.2 billion from exporting nearly 1.5 million MT of
coffee to more than 70 countries in 2014
Section 2: Domestic Industry Overview
Trade
Figure 7: Coffee export by Vietnam: Key facts
Source: ITC and DEPOCEN
Year Volum
e
Growth Value Growth
2011
2012
2013
2014
CAGR 2011-14
Figure 8: Vietnam's Major Coffee Exporting Markets
Note: Bubble size indicates coffee export value in 2014 (million US dollars)
Source: ITC and DEPOCEN
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Contents
Section 2: Domestic Industry Overview
2.1 Consumption
2.2 Production
2.3 Trade
2.4 Export price

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Section 2: Domestic Industry Overview
Export price
Figure 9: Coffee Export Price (FOB, Ho Chi Minh City)
Source: Dak Lak Trade, Investment & Tourism Promotion Center (DTITPC); Vietnam
Coffee-Cocoa Association (VICOFA); Buon Ma Thuot Coffee Exchange Center
(BCEC), Exporters, and DEPOCEN
Figure 10: Differential between Export Price and Farm-Gate Price
Source: DEPOCEN from DTITPC; VICOFA; BCEC, Exporters
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Contents
Section 3: Financial Analysis

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The financial ratios indicate the low and instable degree of profitability over the period 2009-
2013
Section 3: Financial Analysis
Figure 11: Financial ratios in coffee trading subsector
Source: General Statistics Office of Vietnam (GSO) and DEPOCEN
Financial Ratios 2009 2010 2011 2012 2013
Profitability
Net income
Return on Equity
Return on Asset
Gross Profit Margin
Debt-to-Asset Ratio
Debt-to-Equity Ratio
Current Ratio
Quick Ratio
Cost of Goods Sold
Business Cost
Interests
Corporate Income Tax
Other Costs
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The financial ratios indicate the low and instable degree of profitability over the period 2009-
2013 (con’t)
Section 3: Financial Analysis
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Contents
Section 4: Five Forces Analysis of Vietnam Apparel Industry

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Threat of Entry: Degree: Week
Section 4: Five Forces Analysis
Threat of Entry
Capital
requirement
Location Relationship
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Power of Suppliers: Degree: Moderate
Section 4: Five Forces Analysis
Power of Suppliers
Input
Coffee cherry
and parchment
Export
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Power of Buyers: Degree: Strong
Section 4: Five Forces Analysis
Power of Buyers
Export
Market concentration
Undifferentiated coffee
Integration
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Threat of Substitutes: Degree: Moderate
Section 4: Five Forces Analysis
Threat of Substitutes
Tea Arabica and Robusta
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Rivalry among Existing Competitors: Degree: Strong
Section 4: Five Forces Analysis
Rivalry among Existing Competitors
Driver up
Supply
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Contents
Section 5: Legal Environment

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Over the past few years, there have been many strategies and policies issued in order to
facilitate the development of coffee sector
Section 5: Legal Environment
Decision No. 124/QD-TTg National program
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31. 31
Contents
Section 6: Leading Import Markets
6.1 European Union
6.2 United States of America
6.3 Japan

32. 32
Figure 12: EU (28) Market: Key facts
Source: ICO, ITC and DEPOCEN
Section 6: Leading markets
European Union
Coffee consumption in U.S.A reached 2.5 million MT in 2014
Year Consumption Growth Import value Growth
2011
2012
2013
2014
CAGR 2011-14
Figure 13: Top Origins of Imports by EU, 2014
Source: ICO, ITC and DEPOCEN
This part is intentionally left blank

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Contents
6.1 European Union
6.2 United States of America
6.3 Japan
Section 6: Leading Import Markets

34. 34
Figure 14: USA Market: Key facts
Coffee consumption in U.S.A grew by 1.5% in 2014 to reach the level of 1.4 million MT
Source: ICO, ITC and DEPOCEN
Section 6: Leading markets
United States of America
Figure 15: Figure 10 Top Origins of Imports by US, 2014
Note: Bubble size indicates coffee value in 2014 (million US dollars)
Source: ITC and DEPOCEN
Year Consumption Growth Import value Growth
2011
2012
2013
2014
CAGR 2011-14
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Contents
6.1 European Union
6.2 United States of America
6.3 Japan
Section 6: Leading Import Markets

36. 36
Figure 16: Japan Market: Key facts
Coffee consumption continued to grow in 2014 to reach 450 thousand MT in 2014
Source: ICO, ITC and DEPOCEN
Section 6: Leading markets
Japan
Figure 17: Figure 10 Top Origins of Imports by Japan, 2014
Note: Bubble size indicates coffee value in 2014 (million US dollars)
Source: ITC and DEPOCEN
Year Consumption Growth Import value Growth
2011
2012
2013
2014
CAGR
2011-14
This part is intentionally left blank

37. 37
Contents
Section 7: Prospect

38. 38
By 2019, the coffee consumption is forecast to continue to grow steadily at 2.0-2.5% per annum
to reach the level of over 10 million MT
Section 7: Prospects
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39. 39
Contents
Section 8: Leading Companies Profiles
8.1 Intimex Group
8.2 Tin Nghia Corporation
8.3 Louis Dreyfus Commodities (LDC) Vietnam
8.4 Simexco Daklak
8.5 Olam Vietnam

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Section 8: Leading company profile
Figure 18: Market share by export volume, 2014
Source: DEPOCEN
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41. 41
Intimex Group
Section 8: Leading company profile
Source: Company Website
BUSINESS PROFILE
Head Office
Website
Phone
Founded year
Source: Company Website
BUSINESS PROFILE
Head Office
Website
Phone
Founded year
Tin Nghia Corporation
This part is intentionally left blank

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Louis Dreyfus Commodities (LDC) Vietnam
Section 8: Leading company profile
Source: Company Website
BUSINESS PROFILE
Head Office
Website
Phone
Founded year
Source: Company Website
BUSINESS PROFILE
Head Office
Website
Phone
Founded year
Simexco Daklak
This part is intentionally left blank

43. 43
Olam Vietnam
Section 8: Leading company profile
Source: Company Website
BUSINESS PROFILE
Head Office
Website
Phone
Founded year
This part is intentionally left blank

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Contents
A Note on Methodology

45. 45
Primary
sources
Data sources for this report
Data used in this report comes from three main sources, the annual trade flows data compiled by
International Coffee Organization (ICO) and International Trade Center (ITC), and the Enterprises Census
data compiled by the Government Statistical Office of Vietnam (GSO). The first two are used in our
calculation of trade indicators while the latter is to compute the financial ratios.
In addition, the data from the Ministry of Agriculture and Rural Development (MARD), the Provincial
Department of Agriculture and Rural Development (DARD), Vietnam Coffee-Cocoa Association (VICOFA)
and other sources is also used and cited precisely in the report.
Coffee as defined in this report is the products belonging to the HS 0901 code category (the Harmonized Commodity Description and Coding
System in 2007), which includes coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee
in any proportion. Green bean coffee is under the HS 090111 category: “not roasted and not decaffeinated”.
A Note on Methodology
Secondary
sources

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