The central highland province of Dak Lak has introduced incentive policies to encourage domestic and foreign enterprises to increase the production of processed coffee by 20 per cent by 2020.
Dak Lak has a 182,434-hectare coffee zone, yielding 400,000 tonnes of coffee beans every year but only 10 per cent of that amount is processed. The policies are designed to provide impetus for businesses to invest in coffee processing.
Trung Nguyen, which is well-known for its G7 products, is a pioneer in building coffee-processing factories in order to satisfy consumer demand. The company has invested US$40 million in ASEAN’s biggest processing factory in the Tan An 2 industrial zone which can produce 60,000 tonnes of coffee per year.
Thanh Phat trading investment joint stock company will also begin construction of an instant-coffee processing factory in Buon Ho industrial zone in July with an output of 50,000 tonnes per year. The total capital of the project is VND350 million.
Dak Lak now has over 100 coffee businesses with famous brand-names like Tay Nguyen, Thang Loi, Krong But, Trung Nguyen, Mehyco, and An Thai etc. Their major products are ground roasted, powdered and instant coffee.