Coffee Prices Surge In August 2025 – A Golden Opportunity For Vietnam Export

Market Overview

In August 2025, both domestic and global coffee markets witnessed a sharp upward trend in prices. This development not only brings direct benefits to farmers and exporters but also opens a strategic window for Vietnam to expand its market share in key destinations.

Key Drivers Behind the Price Increase

• The U.S. imposed a 50% tariff on Brazilian coffee starting August 6, pushing roasters to seek alternative sources such as Colombia, Peru, Honduras, and Vietnam.

• Frost damage in Brazil reduced yields, intensifying global supply concerns.

• Coffee futures for Arabica and Robusta on the New York and London exchanges surged, pulling Vietnamese domestic prices higher.

Domestic Price Movements

• August 17: Prices reached a 2.5-month high at 116,800 – 117,500 VND/kg, an increase of 13,300 – 13,600 VND compared to the previous week.

• August 20: Prices rose further to 119,700 – 120,300 VND/kg, driven by global price hikes and supply disruptions in Brazil.

Opportunities for Vietnam

• U.S. import tariffs on Vietnamese coffee remain around 20%, significantly lower than Brazil’s → a major competitive advantage.

• Robusta output is projected to increase by 7% in the 2025–2026 crop year, reaching nearly 31 million bags – the highest level in four years.

• Export breakthrough: In the first six months of 2025, Vietnam exported 1.12 million tons, earning USD 6.3 billion, surpassing the full-year record of 2024 (USD 5 billion).

With advantages in tariffs, supply, and rising demand, Vietnam’s coffee industry is positioned at a “golden moment” to strengthen its global presence and capture new market opportunities.