Vietnam exported 309,505 tonnes of coffee, earning approximately US$1.72 billion in the first two months of this year, according to the Department of Customs.

Vietnam is known as one of the world’s leading producers and exporters of coffee, however, it took nearly a century for coffee exports to surpass the US$5 billion mark for the first time in 2024.

Coffee prices have increased by over 50% on average this year, enabling the export revenue to potentially surpass US$5 billion for the first time.

Coffee export revenue is projected to reach a record US$5.6 billion this year, driven by rising global coffee prices.

A sharp rise in export prices has been the major reason behind a surge in the export revenue of Vietnamese coffee sector so far, according to the Vietnam Coffee-Cocoa Association (Vicofa).

At the beginning of the week, coffee prices continued their downward trend, averaging at VND118,400 (US$4.75) per kilo in the Central Highlands - the largest coffee growing area in the country, according to giacaphe.com.

Coffee export turnover to most traditional markets has increased sharply since the beginning of the year.

The Ministry of Agriculture and Rural Development said that Vietnam’s coffee output in the 2023–2024 crop year is estimated to decrease by 20% compared to the previous crop year, to 1.47 million tonnes, the lowest in four years, putting pressure on Robusta supply in the world market.

After reaching all-time high of over VND130,000 (US$5.1) per kg, domestic coffee prices have dropped sharply in recent days.

The prices of Vietnamese coffee and pepper are forecast to continue increasing due to limited supply while the export of these products has also enjoyed relative growth, according to insiders.