NK HOLDINGS Co., Ltd., in collaboration with the Embassy of Vietnam in Japan and the ASEAN-Japan Centre, successfully hosted an event focusing on the "Next Generation of Vietnam's Coffee Industry."

This initiative aimed to spotlight the exceptional quality, competitive pricing, and sustainable production methods of Vietnamese coffee, while also exploring emerging business opportunities within the Japanese market.

The event featured sessions with producers of other distinguished Vietnamese agricultural products, including cashew nuts, honey, and tea leaves. These interactions provided attendees with insights into potential new business ventures, fostering deeper economic ties between Vietnam and Japan.

Highlights from the Event:
Mr. Ta Duc Minh, Commercial Counselor at the Embassy of Vietnam in Japan, provided an overview of Vietnam's coffee production and consumption landscape, future projections, and governmental support policies. Key points included:

• Quality Enhancement Initiatives: In 2024, Vietnam's coffee industry prioritized quality improvement. Numerous farmers and enterprises adopted international standards such as Fair Trade and Organic certifications, enhancing product competitiveness. High-quality and organic Vietnamese coffees have garnered increased recognition in markets with stringent quality requirements.
• Governmental Support Measures: The Vietnamese government introduced various policies to bolster coffee production, including support for coffee replanting, subsidies for production costs (covering seedlings, fertilizers, preferential loans, and tax incentives), and initiatives promoting investment in the agricultural sector. These measures aim to strengthen the coffee supply chain and ensure sustainable growth.
• Collaborative Production Models: Through partnerships between the government and enterprises, Vietnam has advanced models for producing high-quality coffee materials and products. These collaborations focus on enhancing product value and promoting sustainable development in both agriculture and industry.

NK HOLDINGS Co., Ltd. remains committed to fostering international collaborations that highlight and promote Vietnam's rich agricultural heritage, further strengthening the economic partnership between Vietnam and Japan.

Ms. Kristina Hagiwara, Chairwoman of NK HOLDINGS Co., Ltd., addressed the challenges and strategies pertinent to the evolution of Vietnam's coffee industry and its alignment with the Japanese market.

Key Points from Ms. Hagiwara's Address:
1. Challenges and Strategic Responses in Vietnam's Coffee Sector:

• Production Volume: Vietnam's coffee production is predominantly Robusta, accounting for approximately 97% of its total output. The limited production of Arabica beans poses a challenge for diversification. To address this, NK HOLDINGS is initiating large-scale Arabica cultivation in Laos, leveraging favorable climatic and soil conditions to establish approximately 6,000 hectares dedicated to Arabica coffee farming. Wikipedia
• Quality Enhancement: Currently, Vietnam primarily exports raw coffee materials, limiting value addition. To enhance product quality and market competitiveness, NK HOLDINGS plans to:
  • Introduce advanced Japanese manufacturing machinery.
  • Optimize transportation logistics.
  • Implement sustainable practices that support environmental conservation and the development of local farming communities. These initiatives aim to increase the export of finished coffee products with higher added value.
• Knowledge Transfer: To elevate cultivation and processing expertise, NK HOLDINGS is facilitating overseas training programs for Vietnamese personnel to acquire essential skills. Recognizing the unique taste profiles preferred in the Japanese market, partnerships with Japanese enterprises are being established to receive guidance from experts, ensuring that Vietnamese coffee products meet Japanese consumer preferences.

2. Addressing Client Challenges:

• Issue: Clients often face instability in raw material costs due to fluctuations in production volume and quality.
• Solutions:
  • Dedicated Plantation Model: By allowing clients to contract specific coffee plantations, production volumes can be stabilized, ensuring a consistent supply.
  • Supply Chain Improvements: Implementing quality stabilization measures across cultivation, processing, roasting, and logistics to enhance overall product reliability.

Ms. Hagiwara expressed confidence that by addressing these industry and client-specific challenges, the next generation of Vietnamese coffee products can be tailored to align seamlessly with the Japanese market's standards and expectations.

Tasting and Exhibition Highlights
The event attracted numerous attendees from Japan's retail industry, food manufacturers, trading companies, and restaurant sectors. Participants expressed appreciation for gaining insights into the Vietnamese government's coffee support policies and private sector initiatives, and were pleasantly surprised by the quality of Vietnamese coffee.
During the business discussions, lively exchanges between Japanese and Vietnamese companies opened up new possibilities for future collaborations. We remain committed to facilitating such platforms to foster sustainable business opportunities. We extend our sincere gratitude to all participants for their involvement.