Vietnam Coffee Exports Hit Record High in Q1 2026

Vietnam's coffee exports surged to an all-time high of 12.4 million 60-kilogram bags in the first quarter of 2026, according to the General Department of Vietnam Customs. The figure represents a 14% increase year-over-year and cements Vietnam's position as the world's largest Robusta producer. Export revenue topped $4.8 billion USD for the quarter alone, driven by a combination of strong global demand and constrained supply from competing origins in Indonesia and Uganda.

The rally in Robusta futures on the ICE London exchange has been one of the defining stories of the 2025-2026 crop year. Benchmark September Robusta contracts breached $5,400 per metric ton in February, levels not seen since 2010. Analysts at Rabobank attribute the price surge to a structural deficit in global Robusta supply, estimating a shortfall of approximately 3.5 million bags for the current season. Climate disruptions in Vietnam's Central Highlands, particularly uneven rainfall in Dak Lak province during the flowering period, trimmed domestic production by an estimated 5-7%.

For VinaCoffee Group, the strong market has translated into record contract volumes with Japanese trading houses ITOCHU and Marubeni. Our Q1 shipments to Japan alone exceeded 2,200 containers, primarily S16 and S18 grade Robusta destined for instant coffee and RTD manufacturing. The premium that Japanese buyers pay for consistently graded, traceable Vietnamese Robusta has widened to $180-220 per ton above London futures, reflecting the value of VCG's quality control infrastructure.

Looking ahead, the Vietnam Coffee-Cocoa Association (VICOFA) projects full-year 2026 exports of 28-30 million bags, which would represent a 10% increase over the 2025 crop year. However, the sector faces headwinds from the EU Deforestation Regulation (EUDR) enforcement beginning December 30, 2025, which requires full traceability documentation for all coffee entering EU markets. VinaCoffee achieved EUDR compliance in September 2025, positioning our supply chain to capture market share from non-compliant origins.

The Vietnamese government's Decision No. 1163/QD-TTg on restructuring the coffee industry toward value-added processing is also reshaping the export landscape. VCG's new Arabica processing line in Binh Duong, commissioned in January 2026, adds 6,000 metric tons of annual roasted and ground coffee capacity targeting the premium segment in Japan and South Korea. This strategic investment aligns with Vietnam's national goal of increasing processed coffee exports from 12% to 25% by 2030.