Resource information
Vietnam has experienced three sets of
direct impacts as a result of the coffee crisis: Some
regional economic shocks, socio-economic impacts in the
primary coffee-producing regions that have resulted in the
partial dismantling of services like health-care and
education; and post-crisis changes in the business
environment. This study of the Vietnamese coffee sector is
divided into seven parts. Part 1 provides an overview of the
macroeconomic and agricultural context for the sector. It
provides a brief historic background to coffee's
development and presents the basic data on acreage, yields,
and exports. Part 2 offers an assessment of the
institutional structures that affect the coffee sector,
particularly government's influence in the form of
policies and public enterprise involvement. It reviews what
is working as well as what is distorting the sector's
development and presents a view of the private sector's
emerging role. This section explores structures needed for
the sector's optimal function, including property
rights, information, and research and extension services.
Part 3 provides an overview of the current structure of
supply and demand by examining the supply chain, farm sizes,
production costs, and the emerging trends for coffee
varieties. It evaluates the prominent challenges that face
the sector in both the domestic and export markets. It also
covers the financial instruments available to the sector for
credit and financing. Part 4 looks at the risks throughout
the trade chain, highlighting the serious problem of a lack
of facilities to manage price risk in particular, but also
default and climate risks. The importance of informal risk
management systems, such as diversification, is also
examined. Part 5 investigates the social and environmental
impacts of coffee production, including effects on the
ethnic minorities that represent a considerable proportion
of coffee growers. Part 6 concludes with a summary and
recommendations for further action and possible investment opportunities.
