Vietnam's coffee culture is undergoing a significant transformation, driven by a new generation of entrepreneurs who are redefining traditional career paths. One such entrepreneur is Vu Dinh Tu, who opened his first coffee shop, Refined, in Hanoi without informing his parents. Leaving behind a stable career in finance, Tu has successfully expanded his business to four branches within just four years. His venture reflects a broader trend among young Vietnamese who are challenging conventional expectations and embracing entrepreneurship in the coffee industry [78bafeb8].
The coffee shop industry in Vietnam is currently valued at $400 million and is growing at an impressive rate of 8% annually. Despite the presence of international chains like Starbucks, which holds only 2% of the market share, local entrepreneurs are thriving as they create unique coffee experiences that resonate with Vietnamese culture. The evolution of coffee shops into spaces for creativity and self-expression marks a significant shift in how coffee is perceived in the country [78bafeb8].
In the broader context of coffee production, Vietnam remains the world's second-largest coffee exporter, with its coffee exports reaching over $3 billion in 2023. The country exported 862,400 tonnes of coffee in the first half of June, reflecting a decline in volume but a notable increase in value compared to the previous year. The average coffee export price in May was reported at $4,275 per tonne, a 14% increase from April and a 66% year-on-year rise [f62ba4c3].
However, the industry faces challenges, including severe drought conditions that are expected to reduce coffee output by about 20% in the upcoming crop year. The Vietnam Coffee Cocoa Association (Vicofa) anticipates that coffee exports will earn approximately $4.5-5 billion this year, despite these adversities [f62ba4c3].
The rise of young entrepreneurs like Tu is crucial in this evolving landscape, as they not only contribute to the economy but also help to reshape the cultural significance of coffee in Vietnam. Their innovative approaches and dedication to establishing coffee as a serious career are paving the way for a vibrant future in the industry [78bafeb8].