A farmer harvests coffee in Lam Dong Province.
In the Central Highlands provinces of Dak Lak, Gia Lai, and Kon Tum, coffee is currently priced at around VND 96,000 per kilogram, down VND 16,000 from the previous week. This marks a drop of nearly 30 per cent compared to the peak of VND 135,000 per kilogram in March.
Coffee prices have also fallen to their lowest levels this year on the global market. Robusta futures for September delivery are traded at USD 3,737 per tonne, while Arabica is priced at USD 6,950 per tonne.
Nguyen Nam Hai, Chairman of the Vietnam Coffee and Cocoa Association, said domestic coffee prices have plunged even though farmers hold limited stock. He noted that the primary cause is the overall downward trend in global coffee markets.
Brazil, the world's largest coffee exporter, began its harvest season in May and exceeded expectations in yield and area under cultivation. The resulting surplus has contributed to global oversupply. Growing stockpiles in Indonesia have widened the price gap for robusta exports, further weighing global prices.
Meanwhile, global capital flows have shifted toward the US dollar, a safe-haven asset amid ongoing economic uncertainty. This has made dollar-priced commodities like coffee more expensive for buyers using other currencies, reducing demand and forcing prices to adjust. Many investors have also sold off their holdings to lock in profits, exacerbating the short-term price decline.
According to a recent report by the US Department of Agriculture, Vietnam's coffee output for the 2025-2026 crop year is expected to reach 31 million bags, up 6.9 per cent from the previous year. Stockpiles on global exchanges are also rising rapidly. By the end of May, robusta inventory on the the ICE (Intercontinental Exchange) floor had reached 5,438 lots, the highest in eight months, while arabica stocks rose to 892,468 bags, a four-month high.
Farmers in coffee-growing regions like Dak Lak and Kon Tum report favourable weather conditions this year, raising hopes for a stable harvest.
According to the Ministry of Industry and Trade's Import and Export Department, Vietnam exported 823,900 tonnes of coffee in the first five months of 2025, earning USD 4.7 billion. While the volume dropped by 0.6 per cent year-on-year, the export value surged by 62.3 per cent. The average export price, including processed coffee, reached USD 5,709 per tonne, up 63.2 per cent.
Major markets such as Germany, Italy, Japan, Spain, and the United States have steadily grown. Meanwhile, emerging markets in the Middle East, Africa and the Americas are becoming new bright spots for Vietnamese coffee exports.
