Vietnam’s cheap coffee may lose its edge as the EU tightens sustainability rules, Nestlé Vietnam’s chair warns

Vietnam’s low-cost coffee could become less attractive in export markets as the European Union tightens sustainability requirements, according to Binu Jacob, chairman and managing director of Nestlé Vietnam.

Jacob made the warning at the Fortune Southeast Asia 500 Summit in Ho Chi Minh City on Nov. 3. His comments highlight the potential importance of evolving sustainability rules for Vietnam’s coffee exports.

EU sustainability rules raise pressure on exporters

Jacob said Vietnam’s cheap coffee was “no longer going to be attractive to export” as the EU strengthens its sustainability rules. The remarks link the competitiveness of lower-cost coffee shipments to the requirements that exporters must meet in the European market.

The source did not provide details on the specific EU measures or outline how coffee producers and exporters may respond. However, the warning places sustainability compliance alongside price as a factor in the future export appeal of Vietnamese coffee.

Implications for Vietnam’s coffee trade

For Vietnam, the comments point to a potential challenge for the segment of the coffee trade built around low-cost exports. Any reduction in export attractiveness could increase the importance of understanding and meeting the EU’s sustainability expectations, although no specific business impact or follow-up action was announced.

Jacob’s remarks were delivered during a regional business summit and represent a warning about the possible effect of tighter rules rather than a confirmed change in Vietnam’s export performance.