Nghiên cứu này được thực hiện bởi các sinh viên của ..... về chủ đề luận văn tốt nghiệp, Chiến lược thúc đẩy xuất khẩu cà phê sang thị trường Đức giai đoạn 2022-2030. Đúng như tên gọi của đề tài, nghiên cứu cập nhật tình hình sơ bộ và chung của hoạt động kinh doanh xuất khẩu cà phê của Việt Nam sang thị trường Đức, từ đó nghiên cứu chiến lược và giải pháp, giải pháp. Nhằm góp phần thúc đẩy giá trị xuất khẩu cà phê Việt Nam sang Đức. Đây là vấn đề không quá mới nhưng giá trị nó mang lại và cần thiết khi tính ứng dụng của nó rất cao bởi cà phê là một trong những sản phẩm nông nghiệp chủ lực của Việt Nam nếu được khai thác hiệu quả. Nó sẽ mang lại nhiều lợi ích cho nền kinh tế, đặc biệt là trong điều kiện kinh tế như thế này, việc có chiến lược phát triển bền vững trong từng giai đoạn là một điều quan trọng đối với nhà nước. và nông dân. Phạm vi nghiên cứu được giới hạn trong giai đoạn 2022 đến 2030 nên gần như dữ liệu sẽ được thu thập từ các trang thông tin chính thức và liên tục, cùng với nền tảng kiến thức mà bạn đã tích lũy được. Trong quá trình học tập tại trường, cùng với sự giám sát, hướng dẫn của ...... Bài kiểm tra được tích hợp nhiều phương pháp từ thu thập dữ liệu đến phương pháp phân tích bao gồm các phương pháp tham vấn chuyên gia được coi là tối ưu và tăng sức thuyết phục cho nghiên cứu. Các đoàn nghiên cứu nhận thấy sự cấp bách và thiếu thương xót trong việc mở rộng thị trường xuất khẩu cà phê sang thị trường Đức, đồng thời tìm biện pháp phù hợp để hình thành chiến lược đẩy mạnh xuất khẩu. Qua những đánh giá mà nghiên cứu đã trình bày, với ý kiến đóng góp của các chuyên gia, các biện pháp được đề cử là khả thi, hiệu quả thiết thực. Hy vọng nghiên cứu sẽ được góp ý, xây dựng để hoàn thiện những điều còn thiếu, để có bức tranh chiến lược thúc đẩy Việt Nam xuất khẩu cà phê sang thị trường Đức rõ ràng, rõ ràng và bền vững, hiệu quả
INTRODUCTION
Background of the study
Vietnamese farmers have grown coffee for a very long time Since 1857, coffee plants have been grown in Vietnam, initially in a few churches in Ha Nam, Quang Binh, and KonTum However, it wasn't until the early 20th century that French plantation owners began planting coffee plants on a sizable scale in Phu Quy-Nghe An, followed by Dac Nong and Lam Dong, but the total area cultivated was only a few thousand hectares After more than a century of ups and downs, coffee trees are now found practically everywhere in the nation, and the manufacturing of coffee has grown to constitute a significant sector of the national economy
Currently, coffee is grown on more than 571,000 hectares in our nation, employing close to 1 million people Vietnam produced 1,760,000 tons of coffee in 2012, generating $2.3 billion in sales Despite being a late-developing nation, Vietnam's standing in the global coffee market is steadily improving, with the World Coffee Council and many consumers giving it excellent marks for its natural quality flavor (on par with Ugandan coffee and higher than many other nations) One of our country's top ten exports, coffee has grown to be one of the most significant industrial products, is the primary export from the agricultural sector, and has the second-highest export turnover after rice
Vietnam, the new king in the coffee sector was the subject of an article that appeared in the August 2013 issue of Le Point magazine (France) and was concerned with the state of coffee exports from Vietnam This publication claims that Vietnam is currently the world's second-largest coffee grower after Brazil and the primary supply to France.
Statistics indicate that, while ranking second in terms of exports to the global market, Vietnamese coffee is disadvantageous since it mostly exports raw beans with little added value to other countries According to VICOFA, the average cost per ton of processed coffee is close to $3,600, but the cost per ton of unprocessed coffee is just approximately
Vietnamese businesses have taken note of this and are increasing processing later rather than in the actual and dangerous coffee export scene because they are
"retrograde." As Vietnam increasingly expands its international market penetration through the signing of free trade agreements like the CPTPP and EVFTA, roasted and dissolved coffee exports, which currently make up 9.1 percent of the market, are creating numerous opportunities as well as promising futures for the coffee industry.
Particularly, EU nations drink the most coffee, making about 40% of the overall volume and 38% of the entire export turnover Southeast Asia came in second with 13%.
Vietnamese coffee, in particular, has contributed more than 30% of the volume of coffee imported into China, the world's most populated country, including roasted coffee beans
However, of the roughly 1.5–2 million tons of coffee shipped annually, only a small portion is sent as processed coffee Due to this, Vietnamese coffee is "double" disadvantaged in terms of brand value and the size of export turnover.
Vietnamese coffee is mostly sold in the United States, the European Union, Japan, and Korea With 191,644 tons, valued 358,821,179 USD, down 22.91 percent in volume and 28.63 percent in value, Germany is currently Vietnam's top coffee market.
Vietnamese coffee exports to the German market are benefiting but also facing some challenges as a result of Vietnam's WTO membership and the unpredictable economic oscillations that have followed the global economic crisis, which has affected both Germany and Vietnam.
The economic leader of the European Union (EU) is Germany Trade ties between Vietnam and Germany have grown rather rapidly over time The volume of trade between Vietnam and Germany has significantly increased, particularly between 2010 and 2013 Nearly 7.7 billion USD was generated in two-way import and export turnover, an increase of more than 7.5 times The overall import and export turnover between the two nations in the first seven months of 2014 also reached 4.191 billion USD Vietnam specifically sold goods worth roughly USD 1.5 billion to Germany.
The coffee market has faced two challenges in 2020: the covid-19 pandemic expands globally, causing many economies to freeze, and a drop in coffee demand The price of coffee has not yet recovered from the crisis lasting four years Vietnam has not exceeded a 3 billion USD export turnover for the past two years Only 139,000 tons of coffee were exported by the nation in December 2020, a decrease of 26.06 percent from the same time in 2019 Vietnam exported 1.56 million tons of coffee for US$2.74 billion in 2020, a decrease of 4.22 percent in value and 5.61 percent in volume from the previous year.
Additionally, Vietnam boosted its domestic production and exports of processed coffee (including roasted and dissolved) by nearly 12% in 2020.
Vietnam will produce 30.2 million bags of coffee in the 2020-2021 season, down 3.5 percent from the 2019-2020 season, according to the US Department of Agriculture (USDA) (60 kg each) The Vietnam Coffee and Cocoa Association estimates that the consequences of the October floods and the May and June drought will cause a 15% reduction in coffee production in the 2020-2021 growing season Therefore, the Vietnam Coffee - Cocoa Association's anticipated output decline for the 2020-2021 season is greater than the USDA's Currently, harvesting for the 2020-2021 coffee season has reached 60–70% of total production.
Commenting on the coffee export market in 2021, the Department of Agricultural Product Processing and Market Development said that in the first months of the year, the coffee export market has many optimistic signals when coffee inventories at ports around the world have fallen to the lowest level in many years Additionally, it will increase exports with information on vaccination testing It is significant that the demand for home-soluble coffee is rising in the context of Vietnam's major coffee import markets being affected by the Covid-19 pandemic and continuing to enforce high social distance, and that Robusta coffee exports are projected to rise as a result Additionally, Brazil enters the "two-year one" cycle, or the year of low production, in 2021 The 2020–2021 season is expected to see a shortage of roughly 8.5 million bags of arabica coffee due to persistent dry weather that are harming the growth of coffee plants.
In addition to encouraging signs regarding market demand, coffee prices are anticipated to rebound in 2021 as a result of reducing production and a four-year downward cycle.
The Free Trade Agreement between Vietnam and the European Union (EVFTA),which went into effect on August 1, 2020, abolished tariffs on all coffee goods to 0%, is another helpful element and additional potential for coffee exporters In addition, there are geographical indications about coffee among the 39 geographical indications of Vietnam that the EU committed to when the EVFTA went into effect With competition in the EU market, this will be a huge competitive advantage for Vietnam's coffee business Vietnam's main coffee consumer market at the moment is the EU, which accounts for 40% of total volume and 38% of overall export revenue (the average value of coffee exports to the EU reached 1.2-1.4 billion USD per year in the past 5 years).
In addition to the positive signs, there will be challenges for coffee exports in 2021, including: Due to a lack of export containers, prices are anticipated to rise in the near future Exports of coffee are being significantly impacted by this Vietnam will also have to contend with competition from other exporting nations, particularly Brazil Vietnam's coffee exports will face challenges as a result of Brazil's production of coffee, which is the largest producer of coffee in the world.
In addition to challenges on the export market, the Vietnamese coffee industry also faces internal challenges, such as: Low and unstable business efficiency; complete reliance on coffee exchanges by purchasing, processing, and exporting enterprises; Low added value in the structure of Vietnamese coffee products; Vietnamese coffee brands' performance in the international export market for processed coffee has fallen short of expectations; coffee plant deterioration is accelerating quickly; Climate change has several negative effects on coffee production.
Problem statement
I made the decision to research the project "The existing state of Vietnam's coffee exports to the German market in period of 2011 to present - options to improve exports till 2020" for the aforementioned reasons.
Through this project, I also hope to be able to put the knowledge I have learned into practice, comprehend the current situation, benefits and drawbacks of exporting coffee from our nation to the German market, and simultaneously suggest helpful and doable solutions to promote exports and improve the image of the coffee brand In the eyes of international allies, Vietnam.
In order to prevent deforestation to grow coffee while prices are high, the government decided to stabilize the coffee-growing area at 500,000 hectares in recent years Vietnam currently exports more coffee than any other country in the world, second only to Brazil Its exports of coffee account for around 14% of the world market.
Germany is the EU's largest coffee trading country, and there are numerous coffee roasters as well as significant coffee importers there Among them are the three biggest importers of German coffee: Neumann Gruppe, Volcafe - Man*F Man, and Ecom This is because the climate in Germany is unsuitable for growing coffee.
With the desire to find a solution to help boost coffee exports and find solutions to the difficulties facing the coffee market, I decided to choose the theme: Strategy to promote coffee exports to the German market by 2022-2030.
Research Objectives
My graduation thesis's subject is "The status and solutions to enhance Vietnam's coffee exports to the German market." The Vietnamese people no longer find coffee to be all that weird, and it is also a common good in Europe, particularly Germany, which has the capacity to consume more of this agricultural product.
Understanding the state of Vietnam's coffee exports generally, and to the German market in particular, is the research topic's goal (in terms of data and fluctuations expressed through secondary data) Determine the current coffee exporters' strengths and shortcomings Clearly state the benefits and challenges of coffee exporting to the
German market Determining the current state of Vietnamese coffee exports to the German market in 2018–2021 is our next step.
Since then, using the learned knowledge, providing fresh, workable ways to address deficiencies, highlight strengths, and lessen challenges and risks, some strategic proposals have been made to support Vietnam's coffee exports to German marketing in 2022–2030 By doing so, it is possible to learn how to gather data, comprehend statistics, combine information, and get more familiar with the field.
Studying and offering ways to encourage the export of Vietnamese coffee to theGerman market is the primary goal of the topic In order to achieve this, the topic will address fundamental issues including learning about the theoretical underpinnings and organizing the typical issues with coffee exports Let's examine and assess the current scenario with regard to exports and initiatives to encourage Vietnam's coffee exports to the German market then come up with strategies to encourage Vietnamese coffee exports to Germany The next step will be to put the knowledge you've learned into practice in a flexible and proactive manner.
Research Object and scope
Time: Situation from 2018 to 2022 and solution to 2025- 2030
Space: Coffee production and export in Vietnam.
The scope of research on this topic is quite wide with the period from 2022-2030, through which we can refrain from receiving the development process and the fluctuations of the coffee export market in Vietnam are clearer and more accurate The structure of the thesis is presented in the following composition:
Chapter 5: Some Strategic Recomendation for Promoting Vietnam’s Coffee Export to German in 2022-2030.
I used a variety of fundamental research techniques to better comprehend this subject, including synthetic, statistical, and comparative methodologies Chapter 3 will provide a thorough introduction to these techniques In order to clarify theoretical issues and the export status of Vietnamese coffee to Germany, statistical and analytical approaches are utilized Comparative methods are then used to further illuminate Vietnam's position and draw conclusions in each unique circumstance In addition, I have acquired knowledge over years of training and research that forms the theoretical foundation and insights for the paper In addition, the research from many other sources such as books or official websites of the Ministry of Economy, Import and Export information from the official newspapers of Vietnamese enterprises.
General concept of strategy
The process of determining an organization's fundamental long-term goals, selecting courses of action, and allocating the resources required to achieve those goals is known as strategy According to this definition, strategy is a procedure with content that establishes and guarantees supply and demand as well as important regulations that must be followed when employed for coffee exports A strategy is officially described as a broad plan or organizationally focused action scheme that is directed toward the desired aim.
Each business's existence and growth are largely dependent on its business plan The appropriate business strategy will give your company a positive direction, and you can think of it as a map that will help your company move in the right path The fact that there are many traders nowadays is due to their successful business strategies, which enable them to outperform rivals and carve out a niche for themselves in the industry.
Business strategy has many advantages for the company, as evidenced by the following factors: operational approach with a long-term perspective and a strong foundation There are arguments that will cause the action to be disoriented in the lack of a plan or in the case of a poorly defined strategy, causing one to view only the local without taking the bigger picture into account Both internal and external forces are always influencing the business's operations Therefore, by analyzing and projecting the business environment, the business strategy aids companies in directing their operations in the future Business strategy enables organizations to be adaptable and proactive in response to market changes while ensuring that organizations function and grow in the proper way That can support companies in their efforts to improve their market position.
Establish a foundation for firms to actively build environment-friendly business paths based on seizing opportunities, avoiding risks, and highlighting competitive advantages Businesses can better understand opportunities as well as any potential hazards to the growth of their resource base with the use of business strategy It aids companies in taking use of resources and using them responsibly, strengthening the firm.
The strategy establishes an operational course for the company, assisting it in connecting people with diverse interests in order to further its shared goals It forges ties between workers and between managers and workers so, enhancing and strengthening the company's internal strength.
Establish a strong foundation for research and implementation efforts, investments in human resource development, training, and nurturing In fact, the bulk of errors that result from investment and implementation studies are caused by a failure to identify or a diversion from strategic objectives.
Business strategy is a powerful instrument for competing well The effects of economic integration and globalization on corporate operations have increased interconnectedness and impact This practice has made enterprises in the market compete fiercely with one another Businesses employ business strategy as a powerful competitive tool in addition to aspects like price, quality, advertising, and marketing that affect competition.
Export concept
Depending on the circumstances and each author's point of view, there are many various notions about exports, some of which may differ from one another Here are a few illustrations of the export concept I have studied.
The Vietnam Trade Law of 2005's definition of export is the first.
The purchase and sale of international goods is carried out in the form of export, import, temporary import, re-export, temporary export, and transfer, per Clause 1, Article 27 of the Trade Law (2005).
In accordance with Clause 1 of Article 28 of the Trade Legislation of 2005,exporting products entails moving them outside of Vietnam's borders or storing them in designated places on Vietnamese soil that are treated differently from other areas under the law.
The second definition reads, "Export is the sale of goods and services to foreign countries in overseas trade activities."
The subsequent definition: "Exports (sales) and imports are two ways that countries exchange products and services internationally (buys).
The subsequent description: "Export refers to the sale of products or services to another nation for payment in their local currency Exports are a key component of international trade Exports occur on a global scale in all economic sectors, including a rising amount of intangible goods as well as tangible goods after studying and using the definitions of exports listed above as well as additional definitions The term "export" can be broadly defined as follows:
"Exports are business operations, but the reach of a business extends beyond national boundaries or transnational trade It is a system of intricately planned trade contacts that take place both domestically and externally with the goal of advancing the production of developed commodities, changing the economic system, stabilizing, and progressively enhancing the economic well-being of the populace Exporting goods and services can greatly increase the profitability of domestic production Because they must deal with an external economic system that domestic actors participating in exports find difficult to simply control, commercial activity like exports can have negative repercussions.
METHODDOLOGY
Research models
Data collection methods
Researching strategies to promote Vietnam's coffee exports to The
Analysis of the internal environment Vietnam's coffee exports to the German market
Secondary documents are documents that provide general information on the theoretical and practical basis of Vietnam's coffee exports to the German market.
Information about localities This information is based on the study and inheritance of the research results of works published at home and abroad in the field of research, through economic reports - associations of coffee production areas, assessments of the Ministry of Agriculture and the Ministry of Economy,
Secondary materials collected by us from books, newspapers, magazines, the internet, related studies; Data from the National Ministry of Economy.
Primary data is an assessment survey questionnaire collected from administrators and employees in the coffee export of some regions and countries Besides, there are also some interview results experts in the field of international trade, agricultural export, … their evaluative views on the field of study.
In order to study the content of the dissertation topic mentioned, the author conducted an investigation. directly experts.
- Determination of investigative sample capacity.
For experts: selection of 5 qualified specialists in international trade, agricultural export.
The questionnaire is designed in 3 steps:
Step 1: Rely on the theoretical basis and previous related studies to create should initial questionnaire.
Step 2: The initial questionnaire is consulted with the instructor and some survey subjects to adjust accordingly and easily understand.
Step 3: The questionnaire is completed and sent to the survey.
- Conduct emailing to survey subjects stating the article requirements. accompanying content for answering questions In addition, the research outlines an introduction to the topic is also attached to the questionnaire o serve those wishing to better understand the topic as well as the concept used in the questionnaire.
- Call to inform the survey subjects about having sent a letter requesting the investigation and asking for permission, asking the interview subjects to cooperate in answering Calling it is intended to limit the time delay of e-mail messages, as well as to contribute to motivate interview subjects to quickly answer questions.
- Receive replies and summarize the results of replies via email.
- Conduct face-to-face meetings with some interview subjects if the answers are theirs is not meaningful or clear enough; moreover, in some cases there are several arguments interviewees don't have the habit of checking mail regularly, so meeting face- to-face next will help the author gather their opinions.
Preliminary data are figures on the state of Vietnam's coffee exports, including data on the status of production, needles and imports of Vietnamese coffee,
Primary data is collected by conducting surveys, collecting data, from interviews with local and regional leaders,
Through investigating the areas in the field of exporting coffee agricultural products to the German market, we know specifically about the current state of Vietnam's coffee production, the difficult advantages encountered, the requirements for exporting coffee products in Germany.
The research method means that income measures are collected some data:
Secondary data will be collected through articles, dissertations or data published from the Office of General Statistics of Vietnam from 2018-2021.
Scientific research methods play a very important role Highly decisive for the success of the research topic The choice of a method that is not suitable for the field of study will result in the research topic not achieving the end goal.
In addition, choosing a method that is not suitable for the researcher himself also makes them more susceptible to fatigue Much more is pressure, discouragement In the meantime, you can quit researching the subject.
The External Factor Evaluation Matrix, or EFE matrix, is described in fullEnglish as a matrix that examines external influences The EFE matrix is a model that aids in the analysis of the business's external environment at several levels, including the macroeconomic, global, and industrial environments.
The strategic planning of the business will know the opportunities and risks that may come to their business and make judgments and assessments about the impact of each individual factor on the business, including whether it will be beneficial or detrimental This will be based on the EFE matrix of leaders.
There will be varying considerations and amounts of research depending on the size, shape, industry, and market that each business is targeted toward.
We will only take into account the elements that have an impact at the industry and macro level if the business is tiny and only operates in a certain region Business organizations could benefit from less in-depth examination of the global environment, which also takes time, effort, and can result in poor judgment.
Contrarily, if we are a large enterprise, we must carefully analyze the factors affecting all three levels of industry, macro, and the world to get the most general view, the most accurate assessment of the impacts, and to identify the great opportunities and challenges for the business so that there is a development strategy and reasonable direction.
The external factors are mainly Importance Classify Number of important points Factor 1
* Steps to build the EFE matrix
The EFE matrix is constructed through the following 4 steps:
At this step, you need to list from 10-20 factors that play a decisive role in the success of the business based on the assessments from carefully researched data These factors include both the challenges and opportunities for your company, your business lines.
Step 2: Specify the indicator of importance (weighting).
Once you've listed the influencing factors, you'll have to assess the importance of these factors to a level of 0 to 1 (not important to very important) This assessment needs to be highly objective, based on actual figures and often worked on the council because of its importance.
In order for the data to be most objective, you need to compare the data with the direct competitors in the industry, both successful and failed businesses What factors can cause a business to fail should be evaluated with caution, it cannot be taken lightly.
The importance of the elements may be different or overlapping but must ensure that the total importance of the elements is equal to 1.
Step 3: Assess the impact of each factor (Reaction coefficient).
SWOT matrix analysis
The four terms strengths, weaknesses, opportunities, and threats make up theEnglish acronym SWOT The SWOT model is a technique that aids in giving overviews for analysis used in business planning, strategy formulation, competitor analysis, marketing, and the development of new products and services The SWOT model is frequently applied at the outset of a company's marketing strategy.
SWOT analysis is crucial for developing the enterprise's production and business strategy SWOT analysis basically entails examining four variables—Strengths, Weaknesses, Opportunities, and Threats—to assist you pinpoint strategic objectives and a direction for your firm.
The entire company, organization, or specific initiatives that the firm is implementing or plans to adopt can all be analyzed using the SWOT framework In a nutshell, the following elements are included in an enterprise SWOT analysis:
Strengths: Features of a company or project that offer it a competitive edge over rivals.
Weaknesses: The traits of a company or project make it less strong than their rivals.
Opportunity: It is possible to take use of environmental conditions to your advantage.
Threats: Environmental aspects can harm a project or business.
*Pros and cons of SWOT model.
Advantages Free: SWOT analysis is a technique for examining the state of a company's operations or any project it is working on The two main benefits of SWOT analysis are the method's effectiveness and cost-efficiency Important outcomes SWOT analyses four business-related factors-strengths, weaknesses, opportunities, and challenges-in order to produce accurate results that would aid in project completion and risk mitigation Swot model examination of its four components: opportunities, challenges, strengths, and weaknesses can give businesses new ideas The model outlines the benefits, drawbacks, and threats as well as offers strategies for mitigating the worst risks so you can deal with life's challenges more successfully in the future.
Cons Results are superficial: Because swot analysis is so straightforward, the outcomes do not accurately represent the factors The results don't offer criticism; they just highlight the project's preparation, which is insufficient to finish the evaluation and provide objectives and directions More study is required: Since SWOT technique primarily concentrates on studying and analyzing the big picture, a simple SWOT analysis is insufficient to actually produce good results Personal analysis When making business decisions, a thorough analysis considers the company's performance as well as credible, pertinent, and comparable data SWOT analysis, however, does not accomplish this; it is insufficient to make any judgments or decisions All the data obtained is just a reflection of the bias of the individuals who carry out the research and analysis In addition, the data used to analyze SWOT is not really true, can be obsolete quickly.
ENVIRONMENTAL ANALYSIS
Business environment between Vietnam and Germany
Regulations on employer regimes, salaries, bonuses, welfare insurance The coffee industry attracts a sizable workforce, including many different audiences Therefore, it requires a diverse salary policy, depending on the participants and each stage of coffee production exported For coffee growers, it is necessary to have specific policies on prices, protection policies, helping them to be more assured in production For the staff involved in coffee exports, there must be an appropriate salary regime, in addition to providing the necessary equipment for them to grasp the world market information.
Regulations on coffee export contract transactions: coffee price, quantity of coffee, means of transport used in transactions thong is usually calculated according to fob price, Saigon port when assigning export contracts, vehicles are mainly container ships.
Regulations on freedom of trade, construction of strict tariff barriers (whether Vietnam is entitled or not).
Political elements: Political stability is an opportunity to expand the market size as well as the capacity of the coffee market, but it also has major barriers limiting export capacity if the political situation is unstable Vietnam has relatively stable political conditions, so it is not only a good condition to safely produce coffee but also attracts investors in the coffee business because this is a stable source for them The GERMAN market is politically independent and fairly stable in its strategic policy of economic development This will help Vietnam have a stable market.
Thus, legal and political factors are important because if the regulations on the importing country are not known, the export business unit will face difficulties.
Different cultures also regulate the import and export of different goods The culture of a country is long formed and becomes a habit with the people of that country The export of coffee will bring our culture into the importing country If we still follow theVietnamese culture, sometimes it is a hindrance to exports to the GERMAN market.
Germany highly appreciates the origin of coffee, but in Vietnam, the production of coffee is dispersed, the purchase from small units This is very difficult for Vietnam to take the name of coffee origin The purpose of export is to meet the needs of the importing country Therefore, in order to suit the needs of consumers, it is necessary to know how to reconcile Vietnamese culture with the national culture of importing countries Cultural factors are also influenced by the customs of each country, that country prefers instant coffee, or black coffee, coffee or instant coffee Therefore, it is necessary to find out if there is an appropriate export policy.
Average per capita income growth rate: Income factors, people's standard of living:
High living standards people then decide to buy coffee not affected by the change in prices according to the downward trend Low income is the opposite The GERMAN market is a large market with high income levels, cheap prices are not a condition to decide whether to buy or not, but high prices are sometimes a factor in evaluating product quality and purchasing decisions Vietnamese people are different from cheap prices that are the decisive factor for purchasing In the production of coffee exports, too, Vietnamese people when there is a decrease in price is to abandon coffee trees to plant other trees This greatly affects the coffee supply If the income is stable, the demand for consumption is regular, then the conditions for production can develop.
Scientific and technological factors are closely related to economic activities in general and with coffee export activities in particular Science and technology are growing, making the trade between partners more and more difficult The development of the global information network of the Internet, helps all world market information to be constantly updated and businesses can advertise their products at very little cost.
Equipment is still limited: For coffee exporters such as Vietnam, the cultivation of coffee processing lacks modern machinery and equipment, so the quality is not guaranteed, productivity is unstable It is difficult to export coffee.
Thus, science and technology development will be an opportunity to create conditions for all industries in general and the coffee industry in particular to be more competitive in the market But if you do not know how to apply, or the technology in production is weak, it will be a major obstacle leading to the lag, not enough ability to improve the competitiveness in the market.
This factor affects the export business If the resources are large enough, they will be able to carry out exports Because exports carry a lot of risks Each country has its own advantages in each of its commodities, so the production structures of countries are also different.
Vietnam has the advantage of producing coffee exports Natural conditions, combining abundant human resources and coffee production experience of Vietnamese people for a long time have given Vietnamese coffee its own taste, conditional to reduce export costs This is a condition for promoting the export of coffee.
The competition of competitors in the international market is very strong and fierce Coffee export activities of our country want to survive and develop, a very important issue is to compete with competitors in terms of price, quality, prestige,
This is a challenge and a major barrier for Vietnam.
Vietnam's competitors for coffee not only have the strength of political economy,science and technology but today the joint venture into large corporations, creating the strength of monopoly in the market These economic groups have great strengths and market decisions are therefore a huge drag on our enterprises If not properly organized export activities, businesses will be strangled a strong brand, in addition to reasonable price, increase the quality of coffee cave face It is a great success for vietnam's coffee competition by these corporations That's why Vietnamese businesses should always know how to build.
Coffee export environment in Vietnam
4.2.1.1 Exploiting advantages and developing domestic economic efficiency.
No nation has its own closing policy that has led to economic growth in the modern world Each nation needs to take advantage of humankind's economic and technological advancements in order to expand quickly; it cannot rely solely on its own resources The
"open" economy, in which exports play a major role, will offer new development directions to make it easier to take use of any possible advantages the nation may have and to utilize the global labor market most profitably.
Natural resources and labor are two potential considerations for nations with economies that are as underdeveloped as ours Capital, engineering, markets, and management abilities are the missing components Exports are a way to make the economy more accessible to foreign technology and money, combining them with the native labor and resource potential to drive the economy forward and close the economic gap with developed nations.
With lower production costs than other coffee-growing nations (Vietnam's December 2011 Robusta coffee price was 83.62 US cents per Ib, Brazil's 93.39, Ecuador's 84.14, and the Philippines' 88.40), the advantages of land, climate, and production experience have resulted in bumper crops (2011/2012 crop, production reached 24,058 bags, second only to Brazil with 43,484 bags) Additionally, there is a stable political and social system, and the Renovation period's strategy is appropriate for creating favorable conditions for Vietnam to enter the global economy, the region in general, and the international coffee market in particular.
Vietnam strengthened economic, commerce, science and technology cooperation, and human resource development by formally joining the WTO (World Trade Organization) on January 7, 2007, and the ICO (International Coffee Organization) on August 21, 2011 helping Vietnam grow its market by trading coffee products with nations in the region and around the world (Vietnam shipped raw coffee to 78 countries in the 2011–2012 season, including the US, Italy, Spain, Indonesia, Japan, Belgium, Algeria, Mexico, and the UK Germany, in particular, imports the most Vietnamese raw coffee, at 113,000 tons and 231.3 million USD
Theories of economic growth and development suggest that there should be four requirements for each country's economic growth and development Exports are an objective necessity and play a significant role for countries resources, capital, technology, and human resources Most developing nations, including Vietnam, lack cash and technology, and the fastest way to acquire them is through international commerce In support of the nation's industrialisation and modernization, exports generate capital sources for imports The only surefire way to end historical poverty is through industrialisation, but this process costs a lot of money because it needs to be done in order to import cutting-edge machinery and technology.
Imported capital can be created from the following sources: foreign investment, loans, aid sources, tourism-related revenues, and local services that gather foreign money sources such foreign investment, subsidies, or loans secured by debt There is no denying their significance, but organizing them is difficult Additionally, borrowing is frequently inconvenient and must be repaid afterwards.
As a result, exports are the most significant source of capital since they provide the foundation for imports.
The economy's growth necessitates the importation of more and more industrial machinery, equipment, and supplies If utilizing foreign help, loans, or investment sources, they will have to make payments somehow Only exporting is the most efficient way to generate imported capital because it requires no additional costs, unlike borrowing money from abroad, and it also demonstrates the independence of capital sources External capital will rise in the future, but all chances for investment and borrowing from other nations and international organizations will only be advantageous when investors and lenders recognize the borrower country's export capacity as the main source of funds to pay back the debt.
Every year the coffee industry has contributed a large turnover to the state budget In 2012, Vietnam's coffee export turnover reached a record 3.67 billion USD,accounting for 3.2% of the export turnover of goods in general.
4.2.1.3 Contributing to expanding the consumption of goods, addressing employment needs and improving people's lives.
Because the domestic market is small and unable to support modern industrial scale development, mass production does not increase the number of jobs available to people.
Export-related operations provide access to a sizable consumer market with a very diversified range of needs for all social classes and populations worldwide.
Manufacturing has a constant need for laborers, which results in the creation of millions of jobs for people and helps to reduce unemployment while also raising the country's income Additionally, exports provide money that can be used to buy people's daily necessities and other critical consumer products.
Vietnam's 2012/2013 coffee exports were 25,475 bags (equivalent to 1,760,000 tons of coffee), second only to Brazil (28,333 bags) while Indonesia was only 10,614 bags, Honduras was 5,508 bags.
In Vietnam, the Central Highlands in particular, 540,000 farmer households with more than 1.6 million workers depend mostly on the cultivation of Robusta coffee A substantial quantity of labor has been eliminated in the field of coffee production and maintenance alone; on average, 1 hectare attracts 1.5 million or more workers, and this number rises during the harvest season After the coffee supply from the supplier is received, other duties, such as buying, reprocessing and sorting, and trading, must be completed Additionally, it generates employment for tens of thousands of people.
4.2.1.4 Contributing to economic restructuring, promoting production development.
Changing the structure of production and consumption in the most beneficial way is the result of modern science and technology The economic restructuring in the process of industrialization in line with the development trend of the world economy is inevitable for our country Therefore, exports have an important role for production and economic restructuring.
4.2.1.5 Exports create conditions for other industries to have favorable development opportunities.
First of all, the export coffee sector will encourage a number of processing industries, machinery manufacturing industries, long-distance construction, schools, coffee buying stations, and fundamental building industries Additionally, there are numerous service sectors to expand in accordance with: banking, leasing machinery and equipment, pesticides, crop seed delivery services, and This has the effect of hastening the industrialization and modernization process in rural agriculture.
4.2.1.6 Our goods will participate in the competition in the world market in terms of price and quality
Due to the competition, we must restructure our production to create a structure that is constantly market-driven.
Other countries do not have the distinctive natural flavor that distinguishes Vietnamese coffee The distinct flavor of coffee has turned into a benefit for Vietnam because it is a beverage to be enjoyed, occasionally indicating the class of users.
Vietnamese coffee is always provided at a lower price than coffee from other nations on the global coffee market because of the low cost of manufacturing.
4.2.1.7 Exports create conditions to expand the capacity to provide inputs for production, improve domestic production capacity.
Production operations are connected to the search for export markets If exports are profitable, we will have a sizable consumer market Vietnam now has the initiative in coffee production to meet global consumer demand The market has more than 78 nations that buy Vietnamese coffee, although the EU as a whole and the German market specifically represent the country's biggest export markets.
Additionally, the production of export coffee generates conditions that ensure increased capital, technology, management level, worker quality of life, increased production, and reproductive capacity.
4.2.1.8 Exports create economic and technical premises to renovate and improve domestic production capacity.
Overview of the German Environment
4.3.1 Characteristics of the German market.
Population: more than 83.24 million (2020) - is the most populous country in the European Union.
Germany has a diverse ethnic population, but the majority are Germans, making up around 91.5 percent of the population The remaining 2.4 percent are Turks and other peoples (from Italy, Russia, Greece, Poland, Spain, Croatia, and other countries) The main language nowadays is German constituted 6.1% of the total.
Germans have been drinking coffee for over 300 years; they consume 164 liters per person on average, which is more than they do water Germany is currently the nation with the most creative economy worldwide.
Germans who are 46 years of age and older drink coffee in 85% of cases Young Germans between the ages of 36 and 45 prefer to consume coffee every day, at a rate of 63A whopping 27% of senior Germans and 17% of middle-aged Germans prefer to sip pure black coffee devoid of milk or sugar A total of 28% of people across all age categories prefer black coffee with milk and sugar.
In a recent survey conducted by the German Institute of Market Research,respondents indicated that 27% of Germans preferred coffee combined with fresh milk,11% preferred coffee prepared with condensed milk, 7% preferred cappuccino, LatteMacchiato, or espresso, and 21% preferred coffee brewed in-store 37 percent of
Germans prefer to prepare their own coffee at home using a machine instead of purchasing it and consuming it, and as a result, the number of domestically consumed coffee grinders increased from 19 to 23% The above-mentioned results in a German- wide poll by the German research institute show that the German people are really fond of coffee
* Cooperation between Vietnam and Germany a) On trade:
Vietnam's top commercial partner in Europe is Germany, which receives around 19 percent of the country's exports to the EU and serves as a crucial transit point for Vietnamese commodities heading to other European markets Vietnam's top exports to Germany include clothing, bicycles, toys, coffee, tea, seafood, rice, fruits, and clothing.
Vietnamese imports of German commodities are frequently machinery, food, artificial silk, iron and steel, and chemicals,…
2Figure: 4.3.1: Vietnam's German goods turnover in the period of 2010-2020 (billion USD unit).
According to data from the General Department of Customs, Vietnam imported
$3.35 billion worth of goods from Germany in 2020 Vietnam imported items from
Germany at a rate of 22.85% of its EU market imports, placing Germany second after Ireland while making up only 1.27 percent of the country's total global imports (in previous years Germany ranked first) From US$1.74 billion in 2010 to US$3.35 billion in 2020, Vietnam's import turnover of items from Germany approximately doubled.
During this time, imports grew on average 7.93 percent annually Even though Vietnam's imports of German goods tend to rise, they fluctuate regularly between 2010 and 2020 Germany's import volume fell precipitously, particularly in 2019 and 2020, and as a result, Germany lost its title as the EU nation exporting the most goods to Vietnam and Ireland in that year This condition is caused by a number of factors, including shifts in the global economy, the influence of trade disputes between various countries and regions, the UK's exit from the EU, and most notably the COVID-19 pandemic.
Exports from Germany to Vietnam are anticipated to revive and expand once more with the signing and implementation of the EVFTA agreement on August 1, 2020.
According to data from the General Department of Customs, Vietnam imported 3.16 billion USD worth of goods from Germany in the first ten months of 2021, an increase of 15.8 percent over the same period in the previous year Despite the negative effects of the COVID-19 epidemic, this is a positive signal that EVFTA brings in encouraging German goods exports to Vietnam b) On development cooperation.
Germany is one of the major and frequent ODA suppliers to Vietnam, identifying Vietnam as one of the key countries receiving German ODA in Asia Since 2000, Germany has provided about €1.5 billion in aid to Vietnam In 2013-2014, Germany committed €289.2 million to Vietnam, of which €267 million was in the form of financial cooperation and €22.2 million in technical cooperation German ODA in Vietnam is implemented in 3 key areas as follows:
Sustainable economic development, environmental policy Protection and sustainable use of natural resources (especially in water and waste treatment) Improved health care capacity c) About investment.
Vietnam and Germany's health cooperation has a lot of potential to grow as a result of the improving quality of life and rising need for treatment, preventive, rehabilitation, and health improvement in the context of Vietnam's expanding economy.
Additionally, Ambassador Nguyen Minh Vu stressed the significance of the EVFTA and IPA agreements that were concluded between Vietnam and the EU in order to foster collaboration, economic and trade exchanges, as well as to permit foreign businesses to participate in public sector bidding The medical industry is included there.
With health spending in 2017 surpassing EUR 374 billion, Germany is Europe's largest medical market and home to innovative medical technology Germany is one of the top suppliers and exporters of medical care goods and services worldwide and places a strong emphasis on exports in the medical industry In 2017, exports accounted for 64% of the medical technology sector's income in Germany, which was close to 30 billion euros Pharmaceutical exports (including goods and services) generated revenue of 75.4 billion euros, and pharmaceutical businesses invested 6.2 billion euros in R&D.
The German Federal Ministry of Economy and Energy established the "Health Made in Germany" program, an initiative aimed at boosting exports in the German medical industry through supporting foreign companies to establish relationships with German partners and suppliers in the field.
4.3.1.2 Analysis of the market situation. a) The demand for coffee in Germany.
This nation's distinctive culture was shaped by the love of coffee and the abundance of cafés in cities.
Coffee lovers visit coffee houses as the practice has quickly taken off throughout the world, including among locals As a result, the number of cafes "grows" and disperses around the nation, producing cities that are great for coffee.
When visiting the city, one can easily see the coffee industry's healthy competition and ongoing advancements.
Current Export Status of Vietnamese Coffee to the German Market
4-Table 4.4.1a: Vietnam's coffee export turnover to Germany in the period of 2015- 2019.
In general, Vietnam's exports of coffee to the EU market were constant from2015 to 2018, and they slightly fell in 2019 Vietnam's coffee exports in general and to the markets of nations utilizing the euro in particular declined in 2020 as a result of the negative effects of the COVID-19 pandemic, which disrupted freight channels and decreased demand for coffee on the worldwide market Vietnam exported 487.6 thousand tons of coffee to the EU as of August 2020, with a revenue of 779.5 million USD, a decrease of 6.2 percent and 6.4 percent over the same period.
Vietnam's main market for coffee consumption is in particular Germany, which accounts for 34 to 37 percent of the country's total volume and 12.8% of its total coffee export revenue.
Vietnam's coffee firms have a sizable output, but they are still limited to exporting raw (coffee kernels) coffee since they are unable to take part in deep processing and roasting for export (Table 2) The majority of the nation's coffee is procured through agents, small businesses, and FDI processing (coffee kernel) before being sold to major domestic firms and enterprises and exported According to data from 2019, up to 97.6% of Vietnam's total coffee exports are in raw form.
5-Table 4.4.1b: Vietnam's coffee export figures to The German market in 2020.
November 2021 2020 (end of year) Compared to 20019
Proportion (%) in other export markets of Vietnam Quantity
With 209,084 million tons, or nearly 377.15 million USD, and an average price of 1,803.8 USD/ton, coffee exports to the German market had the highest turnover; they made up 14% of both the country's total volume and its total coffee export turnover This is an increase of 1.9 percent in volume, 18.2 percent in turnover, and 16 percent in price over the same period in 2020.
Coffee exports to this market totaled 13,453 tons in November 2021, worth 29.56 million USD, with an average price of 2.1976 USD per ton This represents a decrease of 8.7% in volume but an increase of 4.3% in turnover and a 14.2% increase in price when compared to October 2021.
According to type structure, Vietnam exports mostly Robusta coffee to Germany, making up approximately 94 percent of the coffee going there; fewer than 5 percent of processed coffee in Germany comes from Arabica beans 539,410 tons of the 540,777 tons of coffee products sent to Germany in 2011 were unstained and unsalted, or 99.75 percent The German market likes Arabica coffee since it has a milder flavor and less caffeine than Robusta, which is why the Vietnamese coffee exports are not acceptable for this market This kind makes up 65.8% of coffee imported into Germany, compared to Robusta's 34% and other varieties' 0.2%.
Vietnam exports a minor amount of processed coffee products, including roasted and dissolved coffee Only 83.7 tons of roasted coffee and 258.4 tons of instant coffee were exported to Germany in 2011, a tiny fraction of the total amount of Vietnamese coffee produced and exported to Germany The majority of the products are essentially straightforward processed coffee products; only 0.2 tons of the 83.5 tons of roasted coffee contain caffeine that has been isolated Vietnam currently produces very little coffee that is deeply processed and has high technological requirements.
Prices on the domestic coffee market changed in accordance with global coffee market trends In the Central Highlands provinces, the cost of a kilogram of coffee has increased by 1,600 VND to between 40,800 and 41,400 VND The cost of Robusta coffee FOB delivered to the port in Ho Chi Minh City increased by 59 USD per ton to
In the first two months of 2022, coffee exports were 293 thousand tons and 674 million USD, an increase of 3.4 percent in volume and 35.6 percent in value over the corresponding period in 2021.
Additionally, the resurgence of the world's main economies has boosted coffee consumption The benefits of Vietnamese Robusta coffee are increased by the rising trend of soluble coffee intake The primary exporter of Robusta coffee in the world is Vietnam Robusta is the raw ingredient needed to make instant coffee.
The USDA also predicts that global coffee production would fall by 8.5 million bags, or 4.8 percent, from the previous season to 167.5 million bags (60 kilogram type), in the 2021–2022 season.
Global coffee consumption in 2021/2022 is forecast to increase by 1.5 million bags to 165 million bags, with the increase mainly in Germany Global coffee inventories are also expected to fall by 6.3 million bags to 30 million bags, the lowest level in five years.
4.4.4 Quality and hygiene and food safety.
Food safety and cleanliness are two indicators that go hand in hand with that quality Based on issues with pathogenic microbes, industrial pollutants, allergies, heavy metals, pesticide residues, foreign objects, and food additives, food hygiene and safety are determined Vietnam's coffee business has not yet resolved the aforementioned issues, as production is low, households lack drying yards and must rely on the weather as well as antiquated production machinery; The majority of manual work is used
The vast majority of Vietnamese coffee products continue to fall short of safety and hygienic requirements Meanwhile, modern coffee production techniques are used in nations like Brazil, Colombia, and Peru to produce clean coffee products that adhere to food hygiene standards These nations limit manual labor performed by people so that coffee products are cleansed, while ensuring compliance with the use of contemporary mechanical tools in processing technology, standard facilities for drying and drying coffee, and the presence of chemicals and fertilizers The Colombian Federation ofCoffee Growers (FNC) in particular has a research and development center for ecologically friendly coffee farming methods such safe pest control techniques, organic fertilizer techniques, and wet processing using less water So, when exporting coffee toGermany, Vietnam has a disadvantage over rivals in terms of food cleanliness and safety.
Swot Analysis of Vietnam Coffee Exports to the German Market
S1: Favorable natural conditions for coffee growing.
The natural environment in Vietnam is very conducive to the growth and production of coffee plants Vietnam's climate is divided into two distinct regions that are suited to each of the two primary varieties of coffee, Arabica and Robusta Arabica coffee is appropriate for regions in the north with high temperatures, a wet climate, and an elevation of more than 1000 meters above sea level Robusta coffee is appropriate for the South because of the hot, humid tropical climate; it is most widely grown in the Central Highlands, which cover 72% of the nation Additionally, Vietnam's land characteristics are advantageous According to the Department of Horticulture (Ministry of Agriculture and Rural Development), coffee is the main industrial plant of Vietnam ranked 2nd in the country in terms of area (710 thousand hectares).
Land with landmass reaching high economic value such as basalt red land stretching from the Central Highlands to the Southeast It is such natural conditions that have helped Vietnamese coffee achieve high yields in the world and get its characteristic natural flavors.
According to the most recent United Nations statistics, Vietnam had a population of 98,982,928 as of July 15, 2022, making it a country with a large and affordable human resource The proportion of persons in the working age group, which makes up around 67 percent of the total population, is rising quickly The fact that 2% of our workforce is employed by the coffee business is advantageous for Vietnam's coffee sector.
Currently, there are almost 200 coffee processing businesses, more than 140 export businesses, and Intimex Group Joint Stock Company, Vinh Hiep Co., Ltd., and My Phuoc Intimex Joint Stock Company are the top three Vietnamese exporters of coffee for the entirety year 2021.
The Ministry of Agriculture and Rural Development estimates that there are currently 23 universities and colleges offering programs in agriculture and forestry, including the Ho Chi Minh City University of Agriculture and Forestry and the two universities of agriculture and agriculture in Hanoi About 60% of schools offering agroforestry vocational training are professional intermediates, vocational intermediates, and vocational colleges The Ministry of Agriculture and Rural Development also oversees 28 institutes and research facilities, while the VICOFA Association and allied organizations regularly educate farmers about the methods for growing coffee through agricultural extension programs, seminars, and workshops.
S3: High and stable Vietnamese coffee productivity.
The productivity of Vietnamese coffee has grown from 23.5 weights per ha in 2011 to 28.2 weights per ha in 2021, and production has increased from 1.27 million tons in 2020 to 1.81 million tons in 2021 thanks to re-cultivation In comparison to the global coffee yield (0.8 tons/ha), Vietnam currently produces more than three times as much coffee (2.8 tons/ha) This great output is due to Vietnam's many good types, ideal environment, and, in particular, the Vietnamese people's extensive experience in coffee cultivation.
Regarding the price of producing coffee for export, Vietnam's price is less than that of other nations that cultivate coffee for sale Vietnam costs, on average, between 650 and 700 USD per ton of coffee filling A ton of exported coffee costs between $700 and $800 USD when processing expenses are taken into account The cost of producing one tonne of tea or coffee in India was $1.412 million and one tonne of coffee was
$926.90 Low manufacturing costs are a plus for lowering pricing and boosting Vietnamese coffee products' competitiveness on the global market.
If you look at the overview of Vietnam's coffee price, Vietnam is a significantly lower valuation country than other countries, not only for coffee but also for many other things The pricing approach we use is one of "price penetration," which entails selling lower prices than competitors This will harm the reputation of our nation's coffee brand and result in annual revenue losses that are sizable.
Because the initial stage also heavily relies on natural haowcj hand-dried, Vietnamese coffee beans exported to the German market in particular and the rest of the world generally still sourly set the International Coffee Association (ICC) criteria for moisture, impurities, and spoiled seeds (young, clump, and black) To meet the requirements of pre-gas selling to Germany, the majority of Vietnamese coffee must be processed in the intermediate stage.
The biggest cause is that people don't follow the rules, which start with planting, care, and harvesting It's much worse to harvest fruit when it's still green because this directly impacts the quality of the seeds and the output The findings of the study suggest that if it is ripe to harvest, only 850 fruits / 1kg are needed However, there is also a direct impact on the growth of plants, shortening the flowering time, ripening fruits at the wrong time, etc., significantly influencing the next year's crop If picked while still green, it takes 900–920 fruits to weigh 1kg In order to assess the quality of coffee, buyers and exporters in the Vietnamese coffee market have long been accustomed to using conventional methods, such as those based on the proportion of black beans, broken seeds, contaminants, humidity, hydrolysis, etc This procedure is not only outmoded in comparison to current practices, but it also unintentionally makes it easier to collect underripe coffee, which results in inferior coffee However, this situation has not improved, so the quality of Vietnam's coffee exports is generally uneven, the amount of impurities allowed in coffee beans exported is too high.
Generally speaking, the infrastructure for the coffee business is subpar In addition to a few businesses that have appropriate planting, processing, and drying systems, the majority of households use the area around the house as a drying yard because there aren't enough conditions to build cement courts and they can't dry coffee with a thick density there because there isn't enough space The quality of the coffee is also affected by the lack of sunlight Undeveloped are the road network, irrigation dam, electricity, and water Exporters find it challenging because seaports are largely located in big cities, far from where the raw materials for coffee are produced Processing plants have not advanced significantly, and the technology is old
Nearly all of the transportation is done by road from the location of cultivation to the location of production and processing Small households, where 85% of coffee is farmed, nearly always have motorbikes and three-guard automobiles as their primary modes of transportation Large-scale coffee purchases by businesses can be shipped via shipping companies Most items shipped to foreign countries are transported by sea, while recent years have seen increased growth in air transport Transportation from rural areas of farming and production is difficult and expensive since a lot of people have recently collected in cities like Saigon, Hai Phong, and Quang Ninh to work in the shipping and warehousing business In addition, the gradual increase in gasoline prices caused sea freight rates to increase by 15-20% in 2017, which also had an impact on Vietnam's coffee exports.
W5: Form of export to Germany
Vietnam mostly exports coffee to Germany in an indirect manner through middlemen Here, intermediaries can be distributors and agents for Vietnamese coffee importers or intermediates from other nations However, direct export is also used frequently; this is because Vietnamese coffee does not yet have a well-established brand.
Exporting businesses lack long-term branding strategies, understanding about the export market, and a high degree of coordination between the production and export processes.
Vietnam's net export revenue will decline as a result of the intermediary export.
O1: German coffee demand increases while coffee supply is tending to decrease
Due to the characteristics of the coffee market, which are relatively stable and the supply and demand are less elastic, the growth of coffee consumption in the coming years is quite stable Germany is a large, potential, and diversified market in terms of demand In recent years, the demand for coffee in the German market increased by an average of more than 1 percent per year Germany has a high per capita income, thus there is a need for high-quality coffee goods This presents a strong chance for the company to diversify its product line and increase its market share Due to climate change and drought, certain major coffee exporting nations have experienced a significant loss in production recently, which has led to an upward trend in coffee prices.
Robusta coffee is an excellent choice because Germans enjoy their coffee made to their individual preferences Since Vietnam is currently the world's leading robusta exporter and exports 90% of all robusta harvested there, this presents a fantastic potential for Vietnamese coffee exporters.
Strategic objectives
5.1.1 Direction of vietnam coffee development in The German market.
Focusing on raising the standard, coordinating and assisting farmers with correct harvesting, taking financial precautions to stop the picking of all branches, and limiting the amount of green berries to the least amount possible Spend money on modernizing the dryer and drying yard Modernize recycling facilities gradually, categorize coffee for export, and give wet and semi-wet processing technologies more consideration.
Encourage businesses to make active investments in acquiring cutting-edge machinery and equipment, automating production processes, and ensuring product quality.
Establishing a contemporary coffee consumption system and adjusting to the nature of domestic and international trade transactions.
Create a market development strategy, rationally modify the product mix to boost the percentage of Arabica coffee, certified soda, and high-value finished coffee, and diversify processed goods to boost economic performance and help Vietnam's coffee industry lower risks due to fluctuations in the price of raw coffee at the store.
Aim to aggressively employ e-commerce in trade and trading while perfecting the information system on the business environment, distribution system, and current price Create a distribution network for roasters and processors that is focused on direct export in order to boost revenues, gain market insight into demands and trends, cut back on exports through middlemen, and promote the reputation of Vietnamese coffee. enhancing and reaffirming the international reputation of Vietnamese coffee increase brand recognition for the company, increase customer trust, and serve as a tool to safeguard the interests of the company Improve the procedures and regulations supporting the coffee industry's growth, production, and operational effectiveness.
Coordinate with research agencies, propose to the Government policies to encourage and support farmers and enterprises of all economic sectors to organize large, safe and sustainable production.
5.1.2 Trends in the German market for coffee.
Even in nations like Japan, Korea, China, and others that have traditionally been tea-drinking nations, the global consumption of coffee is rising However, Europe continues to be the world's largest coffee-consuming region, accounting for around 25% of global coffee consumption Germany has a practice of drinking coffee during the week, and as the economy expands and more time is spent working, Germans also use coffee to induce euphoria Along with inviting clients and coworkers to a cup of coffee, which is considered more kind and hospitable in Germany than inviting rice, is another way that Germans say that God refreshes them throughout their exhausting workdays.
Germans consume more coffee on an annual basis than any other country in the world, with 63 percent of those aged 36 to 45 saying they like to drink it every day Because people may now choose to drink coffee with various genres in accordance with their personal preferences, it is no longer as uninteresting as it once was As a result, the trend of coffee consumption has also increased, Consequently, a recent survey by the German Institute of Market Research found that 27% of German respondents prefer to drink coffee mixed with fresh milk, 11% prefer to drink coffee mixed with condensed milk, 7% prefer cappuccino, Latte Macchiato, or espresso, 21% prefer to buy and drink coffee brewed at the store, and 37% prefer to make their own coffee at home using a machine.
Currently, the company mainly exports Robusta coffee to Germany This is the cheapest coffee, but it is still widely used because of how easily it blends with other things However, as people's living standards rise, they become more discerning consumers who demand better style and quality, which is why the German trend is on the rise Arabica coffee will grow more and more popular, especially in recent years due to the challenges of the major coffee export markets brought on by the climate, which will cause the supply and reserve of coffee to decline more than in past years This is what the ICO predicts: Due to challenges the global coffee market is now experiencing,coffee prices will likely increase soon The current record level of shortage and the lack of hope for a rebound in reserves, some German regions will continue to favor Robusta coffee due to the comparatively affordable price.
Strategic content for Exporting Vietnamese Coffee to the German Market
5.2.1 Solutions to improve the quality of coffee exported to the German market (W2 + O4).
Despite Vietnam's current dominance in coffee production and export, the company does not enjoy a competitive advantage in the German market due to the low, inconsistent quality of its coffee goods, which fall short of fully satisfying the standard requirements of German consumers Diversifying products, enhancing quality, and upholding fair prices are important in order to produce and process high-quality coffee and get a competitive edge in the market In order to diversify its offerings, the company must look beyond the export of raw coffee In addition to searching for domestic clients who can supply refined coffee kinds, it must also find new clients in the German market who have a need for such goods a Cultivation.
To ensure and manage the quality of coffee from the cultivation stage, communication between input suppliers and coffee farmers is essential Invite agricultural engineers to inspect and screen plant varieties to choose high-quality, disease-free coffee varieties, assist in enhancing the understanding of coffee growers through informational workshops, and provide training in high-yield coffee growing methods It is vital to develop coffee vigorously in an organic manner, conduct good agricultural production, safeguard plants, and use synthetic procedures to control pests and illnesses in order to dominate the picky German market b Processing stage
Vietnam is concentrating on deeper processing because it is aware that processing has a significant impact on the quality of coffee exports and that German buyers are becoming more and more demanding In order to maintain food safety and hygiene, German importers frequently demand that coffee be treated and attain the acceptable microbiological composition From the selection of coffee types to the harvesting, preserving, and processing of coffee, Vietnam needs to put quality first In this market, you can sell a lot of goods if you accomplish these tasks successfully To be able to produce standard products that satisfy the requirements of importers and increase market share, businesses need to reduce small processing furnaces, increase high-tech processing, increase investment in building more modern factories, and install advanced and modern processing lines Vietnam should also start concentrating on diversifying its products, designs, and packaging application of probiotics to support farmers in their productive endeavors, enhance coffee production conditions, and assure good adherence to the physicochemical standards of coffee.
5.2.2 Diversify product structure and aim for high-value-added coffee
Businesses must increase preferred Arabica coffee exports to Germany in addition to Robusta coffee Invest in more machinery and equipment, use cutting-edge techniques to make highly-valued roasted and soluble coffees, and develop specialized coffee products with high demand on the German market, such as fine coffee and goods with international certification Support the development of sustainable coffee by providing resources and training to producers Additionally, promoting the advantages of drinking coffee to increase domestic consumption is another important strategy Researching how much domestic customers and EU citizens like coffee will help manufacturers make modifications and create better products. b On the coffee grower's side.
Farmers must deliberately develop coffee in accordance with local planning, information, and direction rather than randomly expanding the robusta area In Germany, there is a significant trend toward enlisting technical assistance and finance from domestic and international programs of the State, from the support of businesses to the use of technical methods for sustainable coffee growing to obtaining international certification To maintain environmental friendliness, use insecticides and pesticides sparingly or not at all German customers are becoming more and more interested in these factors.
5.2.3 Promoting trade, promoting distribution channels to the German market (W5.O2,T2,T3)
Direct and indirect distribution channels are the two categories of distribution channels used in business Small and medium-sized businesses won't be able to afford to build a direct distribution channel, which necessitates the ability to execute a complex, varied, and very expensive chain of operations in the investment; instead, a large corporation or corporation, like Thai Hoa Group, Vietnam Coffee Corporation, which has just been built, is required The suggested model looks like this:
The export purchasing facility is managed by a sizable firm This center may incorporate or gather products from organizations that manufacture food, buy coffee, or work with small and medium-sized businesses; it may also set up subsidiaries, branches, and representative offices in important German shopping centers In particular, with the executive function, including the duty of connecting and distributing coffee to supermarkets and stores in the German market, this office is in charge of managing German distribution channels, running business at shopping malls, managing German warehousing, and managing German transportation.
In order to build this distribution channel, it is necessary to have a large amount of capital, capital not only taken from the management corporation but can be contributed from member companies, manufacturers committed to exporting their products, or can be supported by the State such as the Production Stabilization Fund, agricultural support.
Additionally, in order to engage with important partners, enterprises must actively participate in Vietnam's trade promotion programs in Germany, fairs, coffee festivals, and conferences of coffee associations in Germany To market your new coffee items, plan trade shows and client meetings engaging in product trading on the Buon Ma Lien Coffee Trading Center, which encourages involvement in significant German coffee markets like London cooperation and connections with overseas Vietnamese businesses in Germany to widen the network of consumers.
5.2.4 Improving the quality of infrastructure, investing in transport for import and export (W3.W4,O3)
Infrastructure investment is one of the urgent issues that the State needs to pay attention to especially the construction of a transport system to help the circulation of coffee from the place of purchase of winches where processing is as well as from processing to storage and from storage to the export port easily, convenient and can save costs in transportation In addition, it is possible to develop coffee trading markets to create conditions for traders to meet to make it easier for sellers to consume their coffee while not being forced to price as well as buyers will have more opportunities to buy better quality coffee and create opportunities to find stable sources of goods for themselves, At the same time, the coffee trading market is a place to teach each other about the experience of growing high-quality coffee as well as methods to minimize pests and pests on coffee plants Create and implement policies on technology transfer in the coffee processing sector, such as lowering non-tax on businesses importing machinery for exporting coffee processing, promoting and facilitating technology transfer, but prohibiting the import of outdated technologies that are imported because they are inexpensive There is a policy to draw FDI and ODA into the phases of producing and processing exported coffee, but care must be taken to avoid converting Vietnam's export coffee sector into suppliers of raw coffee to foreign firms, especially those that are coming into our nation Additionally, the State has laws that support banks or give them priority treatment in order to establish incentives that give coffee exporters access to long-term loans with low interest rates.
5.2.5 Time to implement the strategy.
The strategic implementation period from 2022 to 2030.
Vietnam's main export is coffee, a significant industry that brings in a lot of foreign exchange to support the socioeconomic growth of the nation Although there have been many ups and downs for the coffee tree, it has always been a crucial, strategic industrial tree that has impacted the lives of tens of thousands of producers, including many members of ethnic minorities Our long-term goal is to encourage the production and export of coffee Germany is a prospective market for agricultural imports, particularly coffee, which would add significantly to Vietnam's exports' economic worth.
However, in recent years, the overly rapid growth of the coffee industry and the sharp price fluctuations on the global, particularly the German markets, have left us in a tough situation Vietnam's coffee business is definitely a major economic sector in the early phases of the country's industrialization and modernization since this reality necessitates that we have the proper policies and strategies to prevent obstacles The graduate thesis "Strategy to promote Vietnam's coffee exports to the German market" has been based on the situation of the coffee industry in recent years, thereby highlighting the need to boost Vietnam's coffee exports to the German market in the period of 2022-2030 and offering a number of solutions to promote the production and export of Vietnamese coffee South of this stage.
The aforementioned subject alludes to the substance, which is wide-ranging, challenging, and complex and necessitates the attention of various levels and linked businesses Despite the author's best efforts, the thesis will inevitably have some flaws because of the restricted degree of thinking and awareness and the short amount of time available to learn about reality To enhance the course, we anticipate getting feedback and additions from teachers and friends.
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EXPERT INTERVIEW SHEET
The following are statements related to the issues:
The impact on the results of Vietnam's coffee exports to the German market.
Please respond by marking a number in the convention appropriate number, expressing your choice according to the criteria below.
Option 1: It doesn't matter at all.
The name of the professor participated in the survey.
The external factors are mainly Importance Classification assessment
1 O1: German coffee demand is growing while coffee supply is on a downward trend.
3 O3: Stable political economy, state export incentive policy 1 2 3 4 5 1 2 3 4
4 O4: The development of science and technology 1 2 3 4 5 1 2 3 4
5 T1: Germany is a fastidious market, strict requirements for coffee products 1 2 3 4 5 1 2 3 4
6 T2: Has not created its own brand for Vietnamese coffee products.
7 T3: The level of fierce competition 1 2 3 4 5 1 2 3 4
The internal factors are mainly Importance Classification assessment
1 S1: Favorable natural conditions for coffee cultivation.
3 S3: Vietnam coffee yield is high and stable 1 2 3 4 5 1 2 3 4
5 W1: Prices when exports are still low, many disadvantages 1 2 3 4 5 1 2 3 4
6 W2: The quality of the product is still low 1 2 3 4 5 1 2 3 4