Vietnam Coffee Market may be dominated by FDI in 2015
According to the Vietnam Coffee and Cocoa Association (Vicofa), the share of foreign-funded enterprises (FDI) in the coffee export market has been increasing in recent years, from 20% of the 2008-2009 harvest season to 38% of the 2010-2011 harvest season, and is expected to increase to 50% in 2015, according to the Vietnam Financial Times on August 4. In 2015, there will be four foreign-funded enterprises producing instant coffee, with an annual production capacity of about 25400 tons, accounting for about 64% of the total output of instant coffee in the country. Vicofa said that foreign-funded enterprises have abundant funds, stable export channels, high overall quality of staff and professional production and management. Compared with domestic coffee processing enterprises, foreign enterprises are more competitive in raw material procurement, processing and export.
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Foreign early comment: raw sugar futures fell to a five-and-a-half-month low Arabica coffee futures from rising to falling
ICE raw sugar futures fell to a five-and-a-half month low Tuesday after a sell-off that continued today following a sharp rally sparked by a warehouse fire in Brazil. Arabica coffee futures rose amid volatile trading amid uncertainty about the extent of crop damage from Brazil's drought.
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