The Socialist Republic of Vietnam : Coffee Sector Report

Vietnam has experienced three sets of direct impacts as a result of the coffee crisis: Some regional economic shocks, socio-economic impacts in the primary coffee-producing regions that have resulted in the partial dismantling of services like heal...

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Bibliographic Details
Main Author: World Bank
Format: Commodities Study
Language:English
en_US
Published: Washington, DC 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2004/06/6055294/vietnam-coffee-sector-report
http://hdl.handle.net/10986/14405
Description
Summary:Vietnam has experienced three sets of direct impacts as a result of the coffee crisis: Some regional economic shocks, socio-economic impacts in the primary coffee-producing regions that have resulted in the partial dismantling of services like health-care and education; and post-crisis changes in the business environment. This study of the Vietnamese coffee sector is divided into seven parts. Part 1 provides an overview of the macroeconomic and agricultural context for the sector. It provides a brief historic background to coffee's development and presents the basic data on acreage, yields, and exports. Part 2 offers an assessment of the institutional structures that affect the coffee sector, particularly government's influence in the form of policies and public enterprise involvement. It reviews what is working as well as what is distorting the sector's development and presents a view of the private sector's emerging role. This section explores structures needed for the sector's optimal function, including property rights, information, and research and extension services. Part 3 provides an overview of the current structure of supply and demand by examining the supply chain, farm sizes, production costs, and the emerging trends for coffee varieties. It evaluates the prominent challenges that face the sector in both the domestic and export markets. It also covers the financial instruments available to the sector for credit and financing. Part 4 looks at the risks throughout the trade chain, highlighting the serious problem of a lack of facilities to manage price risk in particular, but also default and climate risks. The importance of informal risk management systems, such as diversification, is also examined. Part 5 investigates the social and environmental impacts of coffee production, including effects on the ethnic minorities that represent a considerable proportion of coffee growers. Part 6 concludes with a summary and recommendations for further action and possible investment opportunities.