Vietnam’s Agriculture: A New Frontier For Premium Consumer Products In The U.S.

Agricultural Growth in Vietnam Driven by Sustainable Practices

A favorable tropical climate all year round, an abundance of natural resources, and local authorities’ prioritization of sustainable farming practices are driving Vietnam to become an increasingly popular destination for U.S. manufacturers to source high-quality agricultural produce, ranging from rice, green coffee, cashew to walnuts.

Domestic Agricultural Sector Experiences Highest Growth

The domestic agricultural sector in Vietnam has experienced the highest growth, reaching 3.36% in 2022, compared to the past three years, Ministry of Agriculture and Rural Development (MARD) stated earlier, thanks in part to local government funding and incentives.

U.S. Becomes Vietnam’s Largest Trading Partner in Agricultural Exports

According to Census Bureau, the U.S. is one of the top trading partners with the Southeast Asian country, and has recently surpassed China and Cambodia to become Vietnam’s largest business associate in the agricultural industry with an export turnover of $10.8 billion.

Shifting Narrative For Vietnamese Coffee

To understand how Vietnamese products have become the new premium to the U.S. consumer, look no further than the recent rise of Vietnamese coffee exemplified by Nguyen Coffee Supply: Founded by first-generation Vietnamese American, Sahra Nguyen, in 2018, the company launched with a mission of expanding the Vietnamese coffee experience by sourcing primarily robusta beans from the country, a variety that’s high in caffeine and antioxidants, yet had a hard time gaining recognition from the specialty coffee industry in the past.

“Nguyen Coffee Supply has really been pioneering the Vietnamese coffee category… through challenging the dominant narrative and being proud in our stance to reclaim and elevate robusta coffee,” Nguyen wrote me via email. “While it’s well known that many companies use robusta coffee in their products, they don’t mention robusta specifically as they would with arabica beans; the value of transparency was not being equally applied across both coffee species, which ultimately perpetuated the dichotomy and rendered robusta coffee invisible.”

Before Nguyen Coffee Supply’s launch, the general perception of Vietnamese coffee was conflated with “a sweet and strong drink with an excessive amount of sweetened condensed milk,” Nguyen noted. Over time, that perception started to shift with amplified consumer education on robusta’s unique attributes, 60% less sugar for example, and their strong environmental resilience amid climate change.

Sustainability plays a major role in driving interest in growing more robusta beans, and Vietnam accounts for more than half of the global robusta supply. “Arabica is no longer enough to satisfy appetites, and Vietnamese robusta, everyone knows, is number one in the world.” Vietnam’s Coffee and Cocoa Association’s chair, Nguyen Nam Hai, was recently quoted saying.

Robusta coffee indeed serves as a quintessential part of Vietnamese culture and social life to a degree that international coffee behemoths are scrambling to compete domestically: Vietnam has 0.9 Starbucks for every one million people, Euromonitor data showed, the smallest among Southeast Asia’s six main economies, despite having the largest coffee market by value. Meanwhile, local chains — Highlands Coffee, The Coffee House, Phuc Long, and Trung Nguyên Legend — continue to dominate the country.

The U.S. consumer interest in Vietnamese coffee is also heating up evidenced by Nguyen Coffee Supply’s 1,100% year-over-year growth in retail distribution across Whole Foods Market and other regional independent stores, as well as several new player entries, notably Sang and Nam Coffee. In September, Trung Nguyên Legend opened its first U.S. location in the heart of Little Saigon in Westminster, California. Yet, it’s still the tip of the iceberg for a fully blossomed Vietnamese coffee scene, Nguyen believes.

“The category is just emerging in the U.S. market,” she said. “For us, it’s all about growing the pie, not going after each other’s slices, and if categories like matcha and boba are any indication of how big this pie can become, we have plenty of room for everyone.”

Switching To

SDGs, Targets, and Indicators Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 2: Zero Hunger – The article discusses the growth of Vietnam’s agricultural sector and its role in supplying high-quality agricultural produce.
• SDG 8: Decent Work and Economic Growth – The article mentions the cost-efficient labor market in Vietnam and the country’s close ties with the U.S., which attract American manufacturers and contribute to economic growth.
• SDG 12: Responsible Consumption and Production – The article highlights the sustainable farming practices and emphasis on transparency in the Vietnamese coffee industry.
• SDG 13: Climate Action – The article mentions the strong environmental resilience of robusta coffee in Vietnam amid climate change.
• SDG 15: Life on Land – The article discusses the conversion of low-yield rice fields to growing high-value crops and the use of nutrient-rich sediment in the Mekong Delta for agriculture.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists, and fishers.
• SDG 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.
• SDG 12.3: By 2030, halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains, including post-harvest losses.
• SDG 13.3: Improve education, awareness-raising, and human and institutional capacity on climate change mitigation, adaptation, impact reduction, and early warning.
• SDG 15.1: By 2020, ensure the conservation, restoration, and sustainable use of terrestrial and inland freshwater ecosystems and their services.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator for SDG 2.3: Agricultural productivity and income levels of small-scale food producers.
• Indicator for SDG 8.2: Economic productivity levels and technological innovation in the agricultural sector.
• Indicator for SDG 12.3: Reduction in per capita food waste and losses along production and supply chains.
• Indicator for SDG 13.3: Education, awareness, and capacity building on climate change mitigation and adaptation in the agricultural sector.
• Indicator for SDG 15.1: Conservation, restoration, and sustainable use of terrestrial and inland freshwater ecosystems in agricultural areas.

Table: SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: forbes.com

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