Vietnam is the world’s most productive coffee producing nation and has little need for R&R given its strong sector institutions

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R&R Need

~30% of total land is in need of R&R

SHF land in R&R need

‘000 hectares

421,000 ha No need
168,000 ha R&R need

The primary threat to Vietnamese trees are pests such as Nematodes. Trees are relatively young given a recent/ongoing national renovation effort. Farmers generally make use of GAP.

Current SHF yield & potential uplift

Tons per hectare

Current yield
Target yield

Uplift potential


Vietnam already has high yields

Potential increase in supply


Total national supply could increase ~1-2% if R&R and GAP is implemented on all SHF land in need of R&R2

(1) The current yield is calculated on the basis of SHF production divided by SHF land area, the potential yield uplift comes from the GCP study on Vietnam: GCP, Vietnam: GCP: Economic Viability of Coffee farming, 2017;
(2) Estimate assumes that R&R and GAP increase yields with 10%, and the range reflects a 25-100% R&R success rate;
(3) See the GCP source listed in (1) for more detail on this. Sources: FAOstat, Coffee production and land under coffee, 2014; ICO production statistics; Dalberg interviews

Other Viability Considerations

  • ~90% of farmers have coffee as their main crop – less than 10% are intercropping.
  • Increase in intercropping with pepper since price of pepper is increasing, which gives an increased incentive to grow pepper when coffee is aged.
  • There is strong government support for coffee in Vietnam, and coffee production has reduced tax burden to help make the sector grow.
  • Farmers receive a high portion of the export price, with farmer share around 95%, making Vietnam the most cost-efficient coffee supply chain in the world3.

Farmer Segmentation

SHFs have strong links to market

  1. Large & medium farmers
  2. Commercial farmers in tight value chains
  3. Commercial farmers in loose value chains
  4. Disconnected farmers

National production is dominated by SHFs

The vast majority of SHFs are in tight value chains with close and stable links to market. There is a high degree of competition among collectors and exporters creating stable links for SHFs.

# SHFs



(other estimates as high as 800k) - 3-4% of global SHFs1

# SHF land

‘000 hectares


(~95% of national land – average farm size: ~ 1 hectare)

# SHF production

‘000 hectares


(~80% of national production)

Assessment of SHF orgs.

Only 10% of SHFs are organized in coops, which have not been successful so far.

Links to market

Strong links to market through a competitive sector.

(1) Assuming a global SHF population of 20 million; (2) The sector was previously controlled by a national (monopolistic) coffee cooperative. Sources: FAOstat, Coffee production and land under coffee, 2014; ICO production statistics; Dalberg interviews

Enabling Environment for R&R

  • Coffee share of GDP: ~3% (2013).
  • Government has been, and is, supportive of R&R efforts,having covered extensive TA programs for replanting and financing for replanting.
  • Government is increasingly involved in ensuring quality and verification of seedlings of local nurseries.
  • There is a high availability of inputs, though some farmers reportedly tend to over-fertilizer their land.
  • Limited access to finance for most SHFs – commercial banks have little interest.
  • Collectors can provide access to finance, but do so at high interest rates and require SHFs to commit future sales.
  • Government has financed R&R.
  • Farmers already make use of GAP, though there is potential for cost savings from correct application of fertilizer and irrigation systems.

Examples of R&R programs

The Vietnamese government is the main actor in supporting farmers

Government of Vietnam and world Bank - VnSAT – Rejuvenation in the Central Highlands

Government led program, supported by the world Bank, to replant 90,000 hectares and transplant 30,000 hectares in 5 regions in the Central Highlands. The cost of the project is estimated at USD 314 million

Nestlé – Coffee replanting

Nestle partnered with the Western Highlands Agro-Forestry Scientific and Technical Institute (WASI) to distribute free seedlings to replant 270 hectares

Learn more and get involved

There is a lot of work to be done to ensure the long-term supply of coffee from countries where the crop has long shaped the social and economic fabric. Learning to extend the life of their trees and improve yields helps farmers stabilize annual production and in turn, income, while the rest of the world benefits from a steady supply of quality coffee. Continue on to learn more about the immediate attention and action that is required to make this a reality.