Viet Nam National Coffee Corporation (Vietnam)

The subject specializes in the planting, processing, and trading of coffee, rice, rubber, and fertilizers. In recent years, the prices of agricultural commodities such as coffee and rubber have been strongly influenced by economic instability and competition from abundant supplies of Brazil and Indonesia. Besides, climate change, erratic weather, expired coffee gardens are being replanted, which are incurring costs and reducing profits. In 2019, the company only exported a total of 47,050.6 tons of coffee, sold 46,000 tons of processed coffee, and 40 tons of roasted coffee. As a result, it did not achieve the plan according to the supervisory decision assigned by the State Capital Management Committee.Currently, the company is managing 10 dependent units, 21 wholly-owned companies, and contributes capital to 3 companies. The company is currently in the process of restructuring, some member companies are in the process of dissolution and change type of business. According to Decree 126/2017/ ND-CP, the state wants to divest from the subject with the remaining holding rate of 51%.The company is promoting development towards diversifying high-value products (roasted coffee, instant coffee, 3 in 1 coffee) to create a premise for long-term sustainable development.