Vietnam's Coffee King Challenges Starbucks

In a Starbucks café in Lausanne, Switzerland, a Vietnamese coffee entrepreneur sat sipping tea—not tasting coffee—but observing. Dang Le Nguyen Vu, chairman of Trung Nguyen Coffee and mastermind behind the 'Coffee King' brand, wasn’t there for a latte. He was studying how Starbucks built its empire, hoping to glean insights for turning Vietnam’s coffee into a globally recognized brand—beyond just selling green beans.

Vietnam is the world’s second-largest coffee producer and biggest exporter of Robusta, yet 90% of its coffee is shipped as raw, unbranded beans. Dang wants to change that, aiming to add value through roasting, branding, and storytelling—projecting a goal of $20 billion in coffee earnings over the next 15 years.

The Man Behind the ‘Coffee King’ Brand

Dang Le Nguyen Vu is the founder and chairman of Trung Nguyen Coffee, Vietnam’s largest domestic coffee chain and owner of the top-selling instant coffee brand, G7, which has overtaken both Nestlé and local rival Vinacafe. His ambition isn’t limited to domestic dominance. He has set his sights on transforming Vietnam’s role in the global coffee trade—from anonymous supplier to recognized brand.

Why Vietnam’s Coffee Stays Unbranded—and What Could Change That

Vietnam is the second-largest coffee exporter in the world and the biggest shipper of Robusta beans, which are typically used in instant coffee. Overall, it ranks only behind Brazil in total coffee exports. But despite its massive production, Vietnam exports around 90% of its coffee as unprocessed green beans. This leaves most of the profits from branding, roasting, packaging, and marketing to other countries.

Dang argues that the country is leaving money on the table. 'Vietnam currently exports 90% of raw beans. These beans have no brand. This has to change,' he said. He estimates that by improving productivity and adding value through roasting and packaging, Vietnam could earn up to $20 billion from coffee in the next 15 years.

From Green Beans to Global Brand: Trung Nguyen’s Strategy

Trung Nguyen already guarantees purchase prices to smallholder farmers certified in sustainable farming practices. The company’s message, promoted by Dang in Switzerland, is centered on 'responsible creativity, harmony, and sustainability.' Dang believes that today’s major coffee chains preach sustainability but are primarily driven by profit, not farming. 'They don’t grow coffee, we do,' he said.

Unlike Starbucks, which Dang criticizes for selling 'coffee-flavored sugar water' wrapped in a compelling story, Trung Nguyen wants to sell both an authentic story and quality coffee. 'The U.S. consumer doesn’t need another product. They need another story,' he explained.

Global Expansion and Market Vision

Trung Nguyen currently exports to 60 countries and plans to launch a new coffee bean promotion strategy in the United States, flipping its supply ratio from 70% domestic and 30% export to the reverse. Dang also sees huge potential in Asia, particularly China, where per capita coffee consumption is still very low compared to Taiwan (99 cups/year) and Hong Kong (168 cups/year). 'Our factories are running at full capacity but can't meet demand from mainland China,' he said.

Frequently Asked Questions

Who is the 'Coffee King' of Vietnam?

Dang Le Nguyen Vu, chairman of Trung Nguyen Coffee, is known as Vietnam’s 'Coffee King.' He is the visionary behind the G7 instant coffee brand and leads efforts to build a globally recognized Vietnamese coffee brand beyond just raw bean exports.

Why does Vietnam export mostly unroasted coffee beans?

Vietnam exports around 90% of its coffee as unprocessed green beans because it focuses on volume over value. Most of the profit from roasting, branding, and marketing is captured by other countries, not Vietnamese producers.

What is Trung Nguyen’s goal for coffee earnings in Vietnam?

Dang Le Nguyen Vu estimates that Vietnam could earn up to $20 billion from coffee in the next 15 years by increasing productivity and adding value through roasting, branding, and packaging, instead of just exporting raw beans.

How does Trung Nguyen support coffee farmers?

Trung Nguyen buys coffee from smallholder farmers at guaranteed prices, working only with those certified in sustainable farming practices. This supports farmer livelihoods and promotes environmentally responsible production.

What is Trung Nguyen’s strategy for entering the U.S. market?

Trung Nguyen plans to flip its supply focus from 70% domestic and 30% export to 30% domestic and 70% export, launching a new coffee bean promotion strategy in the United States to boost international brand recognition.

Why is Dang Le Nguyen Vu critical of Starbucks?

Dang criticizes Starbucks for selling what he calls 'coffee-flavored sugar water' and argues that the brand’s success relies more on marketing and storytelling than on the actual coffee. He believes Vietnamese coffee can offer both authenticity and a better narrative.

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