Vietnam Loses US$200M Yearly due to Low Coffee Quality

The Vietnamese Ministry of Agriculture and Rural Development (MARD) warned that the country has lost US$200 million yearly due to the low quality of coffee.

 

The MARD said at a conference titled Coffee Outlook Dec 8 in Ho Chi Minh City that the low quality of coffee reduced the country’s export revenue by 10% yearly.

 

The International Coffee Organization (ICO)’s report showed that Vietnam is now the world’s second biggest coffee exporter, but 75% of its coffee fails to meet Coffee Quality Improvement Program (CQP)’s standards.

 

The MARD said that it will propose taxing bags of exported coffee failing to meet TCVN 4193 standards.

 

In the roadmap for applying TCVN 4193-2005 suggested by the MARD, enterprises are encouraged to apply TCVN 4193-2005 in 2007-2008; 20% of enterprises and 5% of exports will apply the new standard.

 

In 2008-2009: TCVN 4193-2005 will be compulsory for exports. The consignments of export that do not meet TCVN 4193-2005 will still be allowed to get customs clearance.

 

However, enterprises will have to make commitments to follow the new standard for subsequent consignments. In 2009-2010: exporters of the consignments of coffee that cannot satisfy the new standard will have to settle the problems before shipping. (Liberated Saigon, Youth)