Gia Lai (VNA) – The coffee industryshould focus on deep processing in the coming time to increase the quality andadded value of its products, according to insiders.

To realise this goal, regions like the CentralHighlands – Vietnam’s coffee capital – must take measures in technicalprocesses, from seed selection, watering, nutrition, and pest management toharvesting, preliminary processing, and diversification of crops, said Dr.Truong Hong, acting director of the Central Highlands Agriculture and ForestryScience Institute. Additionally, he noted, they must promote their coffeeproducts and invite investment in deep processing to ensure stableproductivity, high quality, and sustainable development.

Chairman of the board of directors for Vinh Hiep Co., Ltd., Thai NhuHiep, said that in order to increase the value and competitiveness ofVietnamese coffee in general and Gia Lai in particular, it is necessary tobuild high-quality raw material areas according to the organic farming process,thus creating the best and most competitive coffee products.

He suggested ministries and relevant departmentsoffer legal assistance for roasted coffee producers and establish a Vietnameseroasted coffee association to protect the interests of local businesses.

Director of the Gia Lai ACOM coffee processingfactory Nguyen Truong Hung said his facility produces over 30,000 tonnes ofcoffee annually and exports over 50 million USD worth of goods thanks to theprovince’s incentives, such as the exemption of land lease for 10 years andimplementation of corporate tax support policies.

Currently, the factory’s products are exportedto all markets, including Europe and Japan, he said. He added thatpreviously, only its coffee beans were exported to the European Union and theRepublic of Korea and entitled to zero percent tariff, while processed coffeeproducts were subject to a high tax rate of 15-20 percent.
 
Vietnam has signed free trade agreements (FTAs) with these markets, which is anexcellent opportunity for businesses to invest in processing coffee to boostexports, he said. 

Vietnam is the second biggest exporter of coffee beans in the world, afterBrazil. The Central Highlands, more specifically, has many advantages insoil and climate suitable for coffee development.

The region is home to nearly 600,000 ha ofcoffee farms, making up around 90 percent of the country’s total coffee areas.Gia Lai province in particular has 94,000 ha ofcoffee farms, ranking third in the Central Highlands with the average output ofsome 200,000 tonnes of coffee each year. –VNA