Why Cafe Show Vietnam?
Cafe Show, Asia No.1 Coffee Event
Other than the excellence of Cafe Show brand, one of the main reasons for global coffee businesses to participate in Cafe Show Vietnam is from the potential of Vietnam coffee consumption market.
1. Steady growth of GDP and coffee market
– Real gross domestic product (GDP) growth is expected to accelerate at 6.7% in 2018, reach 208.1 billion Euro in value. With this growth rate, Vietnam remains one of the fastest-growing economies in Asia. The solid increase pace is foreseen to continue until 2020, to reach 248.8 billion Euro.
-It is also reported by International Coffee Organization(ICO) that during four-year period from 2012/13 to 2015/16 crop year the compound average growth rate(CAGR) of Vietnam’s coffee consumption was estimated at 8 percent, which was the third highest rate among coffee exporting/importing countries following Turkey(10.4%) and Philippines(8.9%).
–The increase of Vietnamese demand on coffee is affecting the retail market as well. During 2012-2016, Vietnam was ranked at 4th place among the world’s fastest growing coffee retail markets.
2. Vietnamese coffee consumption habit
– Euro Monitor expects retail sales of coffee to grow a further 6.5 per cent a year until 2022.
–The number of coffee shops in Vietnam was predicted to increase to around 14,000 stores in 2022 that may cause competitiveness for both present chains and new enters.
– 50% of Vietnamese people consume coffee regularly, which was higher than the figure of any other beverages, according to Statista. This means, in return, Vietnamese’ regular coffee consumption stimulated their demand for quality coffee, and the surge of specialty cafe derived from it.
3. EU-Vietnam Free Trade Agreement
– Among ASEAN countries, Vietnam is EU’s second biggest trade partner, largest exporter of goods.
-The FTA is expected to help increase Vietnam’s GDP by 4.6 percent and its exports to the EU by 42.7 percent by 2025. While the European Commission has forecast the EU’s GDP to increase by US$29.5 billion by 2035.
– Expected changes:
+ Transparency and effectiveness of customs procedures
+ Tariff elimination: 65% of the value of EU exports will be removed since the FTA entered into force in August 2020, with the remaining tariffs being phased out over the next decade.
++ Dairy products after 5 years
++ Wine and spirit: after 7 years
– Learn more about Guide to the EU – Vietnam: https://eeas.europa.eu/sites/eeas/files/eu_fta_guide_final.pdf