Policy

The government continues to encourage coffee farmers on marginal land to shift from coffee
to crops better suited to the soil. A long-term policy goal for Vietnam’s coffee sector is to
improve quality so that Vietnam’s coffee can better compete on the world market. To this
end, Vietnam has been working on establishing its own coffee certification system, TCVN
4193:2005. Vietnam’s coffee industry has also been thinking of applying for a protected
geographical indication (PGI); consideration is currently being given to “Buon Ma Thuot
coffee,” named after a city in Dak Lak province, the heart of Vietnam’s coffee growing
region.

The Ministry of Agriculture and Rural Development (MARD) decision No. 3988/QD-BNN-TT,
dated December 26, 2006, calls for Vietnam’s coffee sector to develop plans for intensive
coffee farming. MARD has proposed that the government provide 100 percent funding for a
new seedling investment project geared to renewing old coffee fields. The government
would further provide 50 percent interest rate subsidy to farming households with a plan for
intensive coffee farming in very difficult communes. Additionally, budget would be allocated
to develop infrastructure in areas designated for intensive coffee farming.

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