Coffee was first grown in Vietnam about 150 years ago (1857). Vietnam’s coffee industry is young compared to other coffee growing nations: Indonesia in 1699, Brazil in 1760 (Rio de Janeiro) and Colombia in 1723 (coffee has been Colombia’s traditional main export, accounting for up to 80% of export value in 1925).

Vietnam is currently chiefly growing Robusta coffee (coffee canephor Pierre var. Robusta) with only about 20,000 hectares (about 5% total coffee growing area) reserved for growing Arabica coffee. Excelsa and Liberica coffees are also sparsely grown in some places.

Coffee is primarily grown in the highlands and mountainous areas, mainly in the Central Highlands region. Đaklak has the largest growing area.

Vietnam currently has over 560,000 households growing coffee, generating steady jobs for over half a million laborers, and attracting millions of laborers during pick time, accounting for roughly 3% of the agricultural labor force (1.9% of national labor force). The lives of over two million people are dependent on coffee growing. Coffee plantations in Vietnam are usually small, only 1% (of plantations) are over 5 hectares, 46% between 1 and 5 hectares, the rest (53%) is smaller than 1 hectare.

Despite their small scale of operation, in 1990 over 80% of coffee growing area and production came from the private industry. State-owned plantations are being downscaled or privatized, contributing even more to the growth of the private sector. Coffee growth and production in the private sector has now reached over 90%.

Since 2000 Vietnam has become the second largest coffee exporter in the world (after Brazil), exporting roughly 700 to 900 thousand tons annually, about 12 to 15% of world market share.

Vietnam is currently the world leader in Robusta production. Vietnam’s Robusta coffee is grown at an altitude of 500 – 600m above sea level, experiencing high day/night temperature difference and resulting in better quality coffee as compared to other producers in Asia and Africa.
Vietnam’s coffee has the following competitive advantages:
- Cheap labor;
- High yield (intensive planting: fertilizer, water);
- Transport distance;
- Favorable policies in place for coffee production, processing, and consumption.
Development in grow area and yield also means increased export value and quantity.
In 2006, Vietnam exported 870 thousand tons; export value was worth over US $1.1 billion.
In 2007, coffee production passed the 1 million tons mark, total export value reached over US $1.8 billion. Coffee is Vietnam’s leading agricultural export, and is one of 8 export produce with value of over US $1 billion. Coffee export value also surpassed that of rice in 2007, generating 13% more revenue than rice.
In 2008, according to basic estimates by VICOFA (Vietnam Coffee Association), as of end of October, Vietnam has exported 1.077 million ton, worth US $2.044 billion – a record for Vietnam coffee industry in terms of both quantity and value