In the bustling streets of Hanoi’s Train Street or the vibrant cafes of Ho Chi Minh City’s District 1, the aroma of Vietnamese filter coffee with sweetened condensed milk is inescapable. This iconic brew, often served over ice to combat the subtropical heat, has become a cultural hallmark of Vietnam. But behind every sip lies a remarkable story of resilience, economic transformation, and global ambition. Vietnam, once a modest player in the coffee trade during its colonial past, now stands as the world’s second-largest coffee producer, trailing only Brazil. This ascent, achieved in just a few decades, reflects not only agricultural prowess but also a nation’s determination to rebuild after years of conflict and hardship.

A Colonial Seed Takes Root

Vietnam’s coffee journey began in the 19th century under French colonial rule. The French, enamoured with coffee but unable to cultivate it in their temperate homeland, identified Vietnam’s central and southern highlands as ideal for coffee plantations. The fertile soils and favourable climate of regions like Đắk Lắk and Lâm Đồng proved perfect for growing robusta beans, a hardy variety that now dominates Vietnam’s output. Initially, much of the harvest was shipped back to Europe, leaving little for local consumption. Coffee, at this stage, was a colonial export, not a cultural staple.

The early 20th century brought turmoil that stalled Vietnam’s nascent coffee industry. Decades of war, political upheaval, and economic challenges reduced production to negligible levels by the late 1970s. Coffee was barely enough for local sharing, let alone export. The global market, once a distant dream, seemed out of reach as the country grappled with rebuilding its economy and infrastructure.

A Turning Point with an Unexpected Partner

The 1980s marked a pivotal moment in Vietnam’s coffee story, driven by an unlikely partnership with East Germany. At the time, Europe’s coffee obsession was undeterred by its unsuitable climate, particularly in colder regions like East Germany, where sub-zero winters made cultivation impossible. East Germans, desperate for the beverage that had become integral to daily life, sought alternatives after failed attempts at substitutes. Vietnam, emerging from years of conflict and embarking on economic reforms under Đổi Mới, presented an opportunity.

A historic agreement saw East Germany invest in Vietnam’s coffee sector, providing machinery, infrastructure, and support to revitalise farming in the south-central highlands. In return, East Germany was promised half of the harvest for the first decade. But history intervened: coffee trees take six to eight years to bear fruit, and by the time Vietnam’s first major harvest was ready in 1990, the Berlin Wall had fallen, and East Germany ceased to exist as a separate entity following reunification with West Germany in 1989. The coffee, grown with foreign investment, had no designated recipient. Vietnam, however, seized the moment, redirecting its focus to build a domestic industry that would soon captivate the world.

From Recovery to Global Dominance

The 1990s and early 2000s saw Vietnam’s coffee industry flourish at an astonishing pace. State-led initiatives, combined with farmer ingenuity, transformed the highlands into a coffee powerhouse. By 2024, Vietnam had cemented its position as the second-largest producer globally, contributing around 18% of the world’s coffee supply, predominantly robusta beans used in instant coffee and espresso blends. Brazil remains the leader with arabica beans, but Vietnam’s rapid rise has reshaped global markets, supplying major brands and manufacturers worldwide.

What sets Vietnam apart is not just volume but also innovation in consumption. Coffee evolved from a colonial export to a cultural cornerstone. Today, Vietnamese coffee is synonymous with unique preparations like cà phê sữa đá (iced coffee with sweetened condensed milk) and cà phê trứng (egg coffee), a Hanoi specialty blending whipped egg yolk with coffee for a custard-like treat. Coconut coffee, another local twist, reflects the creativity that permeates Vietnam’s cafe culture. These variations, born from necessity and local ingredients, have become tourist magnets, drawing visitors to experience coffee as a cultural ritual.

Vietnam’s coffee boom has had profound economic implications. The industry employs over 600,000 farmers, predominantly smallholders in rural areas, providing livelihoods and stability in regions once scarred by conflict. Exports, valued at billions of dollars annually, bolster the national economy, with key markets including Europe, the United States, and Japan. The sector’s growth aligns with Vietnam’s broader economic reforms, positioning agriculture as a pillar of development alongside manufacturing and technology.

Socially, coffee has woven itself into the fabric of Vietnamese life. From street vendors serving quick cups to workers on their morning commute to upscale cafes in Ho Chi Minh City blending Western influences with local flavours, coffee is ubiquitous. It transcends class and region, uniting people in shared moments of respite. For tourists, a visit to Vietnam is incomplete without tasting its coffee, whether at a roadside stall or a trendy spot like Melbourne Cafe in HCM City, where sandwiches pair with robust brews.

Yet challenges persist. Climate change threatens yields in the highlands, with erratic weather patterns and water shortages posing risks to production. Over-reliance on robusta, while lucrative, leaves farmers vulnerable to price fluctuations in global markets. Efforts to diversify into arabica and specialty coffees are underway, but scaling these initiatives requires investment and training. Additionally, the environmental toll of intensive farming—deforestation and soil degradation—has sparked calls for sustainable practices, a concern shared by both local authorities and international buyers.

A Global Brew with Local Soul

Vietnam’s coffee story is one of transformation, from colonial exploitation to post-war recovery and, ultimately, global prominence. It reflects a broader narrative of resilience, where a nation turned adversity into opportunity, leveraging natural advantages and historical partnerships to carve a niche in a competitive market. Today, Vietnam doesn’t just produce coffee; it redefines it, infusing global trade with local flavours and traditions.

For those visiting Vietnam, coffee isn’t merely a drink—it’s an experience. Whether you’re sipping egg coffee in Hanoi’s Old Quarter or enjoying an iced brew under the sun in Ho Chi Minh City, each cup tells a story of history, culture, and ambition. As Vietnam continues to innovate and address sustainability challenges, its coffee industry stands as a testament to what determination can achieve. If you haven’t yet tasted Vietnamese coffee, make it a priority. One sip, and you’ll understand why it’s celebrated worldwide.