Recommendation lending value chain to develop Vietnam's coffee industry

Abstract

Vietnam has many strong agricultural products on both the domestic and the world market. However lately, our agriculture products still fall into a vicious circle “bumper crop, declined value” but there is still no way extricating it fundamentally. The recent phenomenon of product likes watermelon, garlic, coffee, rubber, pepper... continues to prove that vicious chain. Farmers spontaneously develop crops just to suffer consequences, and then fall into debt; commercial banks as a result are giving further bad loans. For long-term crops such as coffee, rubber, pepper,... often with very large investment, lasting a few years to harvest, if farmers constantly encounter uncertainty in consumption and then cut down the present crops and replace to the other, the consequences will be more severe. 

This article recommends extending loan form in value chain for the coffee industry. This form of loan is considered as suitable and efficient to create a strong connection among the chain of coffee development in Vietnam. To provide a basis for the recommendation, this article contains an overview about our country's coffee industry and the credit policy for recent coffee sectors.