Coffee production planning
Vietnam government has issued a number of orientation/planning documents in order to improve
Vietnam’s competitive capacity towards sustainable development and added value. Specifically, MARD
approved the Plan for developing Vietnam’s coffee sector till 2020 and vision to 2030 (21/5/2015); Plan
for increasing added value by process improvement and reducing post-harvest loss to agro-commodities
(13/5/2014); Plan for developing sustainable coffee till 2020 (1/8/2014); Plan for coffe rejuvenation in The
Central Highlands in 2014 – 2020 (21/10/2014). Besides, The Government approved Plan for agricultural
restructuring (10/6/2013), emphasizing that coffee is one of the strategic commodities needed to be
restructured soon.
Plan for developing sustainable coffee till 2020: 80% of 600,000 ha is sustainably planted, yield of around
2.7 tons/ha, output around 1.6 million tons/year, output value of about 120 million VND/ha; 30% of coffee
wet-processed; instant and roasted coffee around 25% of total output; export about $US3.8 – 4.2
billion/year.
Plan for developing Vietnam’s coffee sector till 2020 and vision to 2030: coffee area in 2020 is expected
to reach 500,000 thousand ha, till 2030 around 477,000 ha; 2020 output about 1.1 million tons, processed
capacity about 125,000 tons and 2030 about 135,000 tons; export value of about $US2.1-2.2 billion and
2030 is higher than $US2.2 billion..
Domestic support policies
Land
Decree 20/2011/ND-CP on 23/3/2011 guiding Decree 55/2010/QH12 on exemption and reduction of
agriculture land tax (Effective duration of Decree 55 was from 01/01/2011 to 31/12/2020). Content of this
policy is to reduce 50% of land tax for agriculture enterprises. This policy aims to support enterprises to
invest in agriculture and encourage land accumulation for production…
Direct payment
Regarding support for natural disasters and epidemics, the Vietnam government issued Decision
142/2009/QD-TTg dated 31/12/2009 on policy and mechanism support for cultivation, livestock and
fishery varieties which are damaged by natural disasters and epidemics. This document mentioned that
support for 70% of damaged perennial trees were 2 million VND/ha, while 30-70% around 1 million
VND/ha. However, after two years of implementation, The Government issued Decision 49/2012/QD-TTg
dated 8/11/2012 amending Article 3 of Decision 142/2009/QD-TTg, mentioning that the support would be
improved to be suitable to increace of actual price. Specifically, support for 70% of damaged perennial
trees were 4 million VND/ha, while 30-70% around 2 million VND/ha.
Credit policy (including credit for rejuvenation program)
A number of policies were issued for supporting coffee rejuvenation activities in two recent years: Process
of robusta coffee rejuvenation regulated in Decision 273/QD-TT-CCN dated 03/7/2013 issued by
Department of Cultivation; Economic-technical norms for robusta coffee rejuvenation regulated in
Decision 340/QD-BNN-TT dated 23/2/2013 by MARD; State Budget of Vietnam approved 12,000 billion
VND for supporting 5 provinces of The Central Highlands to carry out coffee rejuvenation program;
Vietnam Coffee Rejuvenation Board was established (Decision 2927/QD-BNN-TCCB on 11/12/2013);
Coffee Rejuvenation Plan for The Central Highland in 2014 – 2020; Document 1685/VPCP-KTTH dated
12/3/2015 of Government Office guiding the credit lending for coffee rejuvenation in The Central
Highlands. Recently, the Governor of the State Bank of Vietnam issued Document 3227/NHNN-TD
guiding Vietnam Bank for Agriculture and Rural Development to implement lending policy for coffee
rejuvenation in The Central Highlands in 2014 – 2020 and Document 3228/NHNN-TD for implementing
lending policy for coffee rejuvenation in The Central Highlands in 2014 – 2020.
Training and education for farmers
Thanks to the support policy and budget of national and local government for agricultural extension, the
number of farmers joining technical training courses have gradually increased. Innovation of training
methodology, curricula, and organization brings effectiveness to training courses. In recent years, 4C
standard is usually trained for farmers to meet customer‘s requirements of coffee products. Regaring
support for training agriculture enteprise‘s workers: Decree No 61/2010/ND-CP regulates that there are
three support levels based on production scale: Micro small enterprises are supported 100% training cost,
small enterpises 70%, small and medium enteprises 50%. The support is only one time/labor and
maximum of six months. Decree 210/2013/ND-CP on supporting enteprises to invest in agriculture
mention the support of 70% cost, one time/labor and maximum of six months. Untrained labor in special
use forest is supported with three million/month/labor.
Besides, some enteprises also gain benefits from Scheme 1956 as well as other projects on vocational
training support for agriculture and rural labor. These projects contribute to improve labor quality for some
agriculture enterprises.
Input support (irrigation fee, varieties, fertilizer...)
Resolution 55/2010/QH12 on agricultural land use tax exemption and reduction, Decree 20/2011/ND-CP
on detailed regulation and implementation guidance for Resolution 55/2010/QH12; Decree 115/2008/ND-
CP regulated that irrigation charges are exempted for households, individiuals using their land/water
surface for agricultural production; Circular 41/2013/TT-BTC on implementation guidance for Decree
67/2012/ND-CP and amending some Articles of Decree 143/2003/ND-CP issued by The Government;
Circular 41/2013/TT-BTC guiding some articles of Decree 67/2012/ND-CP dated 10/9/2012 amending
and revising some Articles of Decree 143/2003/ND-CP dated 28/11/2003; Decision 1580/2009/QD-TTg
on financial support of water pumping and slapping for preventing foods for some provinces in Mekong
River Delta.
Decree 209/2013/ND-CP dated 18/12/2013 guiding some Articles of Law on Value Added Tax, Cicular
219/2013/TT-BTC guiding implementation of the Decree for reducing value added tax down to 5% for key
inputs as fertilizer, pesticide, stimulant drugs, livestock and fishery feed; Circular 02/VBHN-BCT dated
23/1/2014 of Ministry of Trade and Industry replaces Circular 07/2004/TT-BTM dated 26/7/2004 of
Ministry of Commerce on import tax exemption towards production materials, imported inputs for agro-
forestry-fishery and salt production, artificial variety production, imported plant and livestock varieties.
Decision 1258/QD-BNN-KHCN on June 4, 2013 approving List of major extension program in 2013 –
2020, of which, there is development program on applying Vietgap for coffee cultivation.
VGAP, GAP support production
Vietnam government supports to apply UTZ, 4C, GAP production standard… and other standards
mentioned in some legislative documents as Circular 75/2009/TT-BNNPTNT on food safety and hygiene
standards of agricultural production; Decision 86/2007/QD-BNN on national standard TCVN 4193:2005
for examining quality of imported green coffee; Circular 03/2010/TT-BNNPTNT on national standard
TCVN 4193:2005 for green coffee; Decision 1415/QD-BKHCN dated 12/6/2014 on national standard
TCVN 4193:2014 for green coffee; Decision 01/2012/QD-TTg on support policy for applying the method
of good agricultural practices (GAP) to agriculture, silviculture, and aquaculture; Directive 1311/CT-BNN-
TT in 2012 of MARD on promoting application of GAP; Circular 54/2014/TT-BNNPTNT, Joint Circular
42/2013/TTLT-BNNPTNT-BTC-BKHDT, Circular 53/2012/TT-BNNPTNT are all issued for promoting GAP
application in agriculture.
