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Daily: Domestic coffee prices declined on June 25, 2025 

 Wednesday, June 25,2025

AsemconnectVietnam - According to Kinhtedothi, domestic coffee prices in Vietnam ranged between VND 94,000 and 94,500 per kilogram on June 25, 2025. An abundant coffee supply from Brazil remains the main factor dragging prices down. In addition, tariff pressures and ongoing armed conflicts in various parts of the world have triggered a wave of speculative sell-offs.

In Lam Dong province, prices were recorded at VND94,000/kg in Di Linh, Lam Ha, and Bao Loc districts.
In Dak Lak, Cư M’gar district saw the highest price at VND94,500/kg, while Ea H’leo and Buon Ho districts reported VND94,400/kg.
In Dak Nong province, coffee was purchased at VND94,600/kg in general, with Gia Nghia and Dak R’lap both at VND94,500/kg.
In Gia Lai province, prices stood at VND94,100/kg in Chu Prong and VND94,000/kg in both Pleiku and La Grai districts.
Kon Tum province saw coffee prices at VND94,100/kg.
Domestic coffee prices have declined compared to the same time yesterday.
Global Market:
At the close of the latest trading session, Robusta coffee prices in London saw sharp declines:
• July 2025 contract dropped by $230 to $3,756/ton
• September 2025 contract fell by $244 to $3,660/ton
On the New York exchange, Arabica coffee also fell sharply:
• July 2025 contract dropped by 13.45 cents to 313.1 cents/lb
• September 2025 contract decreased by 12.55 cents to 308.05 cents/lb
After a brief rise the previous day, both coffee exchanges suffered steep losses. Arabica has now dropped to its lowest level in over five months, while Robusta has fallen to its lowest point in more than a year.
On June 25, 2024, the market was in a strong upward trend. At that time, domestic prices ranged from VND 123,000 to 123,900/kg, while Robusta in London for September delivery was at $4,252/ton. Compared to a year ago, Robusta has fallen by about $500/ton, and domestic prices have dropped by an average of VND 30,000/kg.
According to experts, abundant supply from Brazil remains the key factor behind falling prices. Additionally, tariff concerns and armed conflicts in many regions have caused speculative investors to offload their holdings.
Expert Nguyen Quang Binh noted that the depreciation of the local currencies in Brazil and Vietnam against the USD has also contributed to the price decline.
Yesterday, Vietnamese banks raised the USD exchange rate to the ceiling of VND 26,310 — 2.9% higher than at the start of the year. According to UOB Bank, if Vietnam fails to reach a trade agreement with the U.S., the dong is likely to remain weak against the dollar. It is expected to continue fluctuating at weak levels through Q3, with a potential recovery beginning in Q4 and into early next year.
In 2025, Vietnam aims to increase its coffee export turnover to $8–10 billion, focusing on expanding markets for processed coffee and moving up the value chain.
According to the Vietnam Coffee and Cocoa Association (VICOFA), the country targets boosting exports of roasted and instant coffee, aiming to reach $5–6 billion in export turnover by 2030.
Over the past 30 years, a sharp increase in coffee prices has motivated many businesses to invest in processing technologies to add value. Currently, both foreign-invested and domestic enterprises are stepping up investment in coffee processing plants in Vietnam to enhance product quality and competitiveness in the global market.
Foreign enterprises see in-house production as a strategic move to ensure quality control and gain a competitive edge in the global supply chain.
Major Investments in Coffee Processing
• Nestlé Vietnam announced an investment of nearly VND 1.9 trillion (about $73 million) in April to expand its Nestlé Tri An factory in Dong Nai province, raising its total investment in Vietnam to over VND 20 trillion.
• Trung Nguyen Legend Group recently began construction of a new factory in Buon Ma Thuot City, Dak Lak province, with an investment of more than VND 2 trillion. This is the group’s fifth factory in Vietnam and second in Dak Lak, aimed at deep and refined processing to generate higher added value.
• Highlands Coffee inaugurated a roasting factory in Ba Ria – Vung Tau province, with an investment of VND 500 billion and an annual capacity of 75,000 tonnes. The plant uses German technology and meets international quality standards.
• Phuc Sinh Joint Stock Company is preparing to build a VND 500 billion processing plant, expected to become operational in 2026. The facility will apply high-end processing techniques to directly access European and Japanese markets.
• Intimex Group, one of Vietnam’s top three coffee exporters, is operating an instant coffee plant in Binh Duong province with an annual capacity of 4,000 tonnes. Due to high market demand, the company plans a second phase to double capacity to 8,000 tonnes per year.
Export Performance
In 2024, Vietnam earned $1.18 billion from processed coffee exports, making it the second most valuable coffee export after Robusta, which brought in $4.18 billion.
These developments show Vietnam’s strong determination to shift from raw exports to value-added production, strengthening its position in the global coffee industry.
T.Huong
Source: Vitic

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