Chung Tran
Jun 27, 2020
Research Papers / Restraints in coffee exporting [3]
We are going to argue the concept of restraint first. The definition of the word "restraint" is merely understood as the elements and challenges existing to prevent the development of a certain field (Paterson and Duxbury, 2007). If this phenomenon stretches too much to endure and there are no timely appropriate remedies, the industry will soon reach bankruptcy. Currently, Vietnamese coffee products are also confronting tremendous restraints that need to be overcome and defeated to bring Vietnam 's brand to the international market more widely.
1.Tax
Vietnam is not recognized as one of the countries with preferential tariffs on coffee products as countries in the Americas when enrolling in international markets such as Spain, Italy, the US, and the EU (Baffes, 2005). Namely. Vietnam must be subjected to a great tax rate which fluctuates from 2.6% to 3.1% . This illustrates obviously that the price of Vietnamese coffee in foreign markets will be enhanced much higher, thus the consumer market will be lower remarkably and people will prioritize the consumption of coffee products from other countries to save costs. Additionally, from nld.com.vn (2019) there are many countries that use non-tariff barriers as protective fences for the domestic coffee processing industry. Vietnamese enterprises, therefore, want to penetrate directly into these markets, they are forced to export through intermediaries having especially preferential treatments. Consequently, it takes businesses thousands of hours and reduces profits significantly.
2. Environmental conditions
Cuong, and Toan (2016), (Carr, 2001, Waller, (2007) did assert that environmental conditions are unavoidable difficulties. This is considered an important factor determining the development, productivity, and quality of the Café. First of all, Cuong and Toan (2016) emphasized natural disasters such as storms, floods, droughts, often occur all year round, and have a variety of damage and destruction. For example, when the flood goes through, landslides are often accompanied. Subsequently, the area under cultivation is reduced and removed plenty of nutrients that downsize the productivity of Cafés. Secondly, the quality of water and air is noticing considerably (Mol, 2009). Nowadays, global warming is triggered by the uncontrollable contamination of air and water. The heat causes prolonged droughts, while the coffee tree is extremely necessary to be watered from January to April (Carr, 2001). Thus, unqualified water becomes a huge barrier for farmers to get high-quality coffee beans. Finally, Waller, (2007) revealed coffee is the favorite food source of insects, especially Robusta coffee having in Vietnam. Because of the increasing number of insects, people have enhanced their use of chemicals such as fertilizers and pesticides beyond the limits. This seriously affected the quality of coffee exported to foreign countries by strict inspection of food safety. In general, there are many environmental issues affecting the Vietnamese coffee market.
3.Product quality inspection and supervision system
Although technology in Vietnam has been much more advanced in order to serve the effective management and supervision , it has not really satisfied many Vietnamese enterprises from production to export Ca, T. N. (2016). Honestly, the product quality monitoring and controlling system is far weaker and more backward than in other major countries (Mol, 2009). Plus, in recent times the phenomenon of selling counterfeit goods that is sold under the name of prestigious brands but the quality is much less than expectation has tended to enlarge unbelievably which did put many large and small businesses into awkward and problematic situations. More specifically, businesses that do not have an outstanding reputation in the market cannot afford to prevent bad guys from stealing a brand. In conclusion, this has greatly influenced the Vietnamese coffee brand, and narrow consumer markets noticeably.
Restrictions regarding vietnamese coffee export
We are going to argue the concept of restraint first. The definition of the word "restraint" is merely understood as the elements and challenges existing to prevent the development of a certain field (Paterson and Duxbury, 2007). If this phenomenon stretches too much to endure and there are no timely appropriate remedies, the industry will soon reach bankruptcy. Currently, Vietnamese coffee products are also confronting tremendous restraints that need to be overcome and defeated to bring Vietnam 's brand to the international market more widely.
1.Tax
Vietnam is not recognized as one of the countries with preferential tariffs on coffee products as countries in the Americas when enrolling in international markets such as Spain, Italy, the US, and the EU (Baffes, 2005). Namely. Vietnam must be subjected to a great tax rate which fluctuates from 2.6% to 3.1% . This illustrates obviously that the price of Vietnamese coffee in foreign markets will be enhanced much higher, thus the consumer market will be lower remarkably and people will prioritize the consumption of coffee products from other countries to save costs. Additionally, from nld.com.vn (2019) there are many countries that use non-tariff barriers as protective fences for the domestic coffee processing industry. Vietnamese enterprises, therefore, want to penetrate directly into these markets, they are forced to export through intermediaries having especially preferential treatments. Consequently, it takes businesses thousands of hours and reduces profits significantly.
2. Environmental conditions
Cuong, and Toan (2016), (Carr, 2001, Waller, (2007) did assert that environmental conditions are unavoidable difficulties. This is considered an important factor determining the development, productivity, and quality of the Café. First of all, Cuong and Toan (2016) emphasized natural disasters such as storms, floods, droughts, often occur all year round, and have a variety of damage and destruction. For example, when the flood goes through, landslides are often accompanied. Subsequently, the area under cultivation is reduced and removed plenty of nutrients that downsize the productivity of Cafés. Secondly, the quality of water and air is noticing considerably (Mol, 2009). Nowadays, global warming is triggered by the uncontrollable contamination of air and water. The heat causes prolonged droughts, while the coffee tree is extremely necessary to be watered from January to April (Carr, 2001). Thus, unqualified water becomes a huge barrier for farmers to get high-quality coffee beans. Finally, Waller, (2007) revealed coffee is the favorite food source of insects, especially Robusta coffee having in Vietnam. Because of the increasing number of insects, people have enhanced their use of chemicals such as fertilizers and pesticides beyond the limits. This seriously affected the quality of coffee exported to foreign countries by strict inspection of food safety. In general, there are many environmental issues affecting the Vietnamese coffee market.
3.Product quality inspection and supervision system
Although technology in Vietnam has been much more advanced in order to serve the effective management and supervision , it has not really satisfied many Vietnamese enterprises from production to export Ca, T. N. (2016). Honestly, the product quality monitoring and controlling system is far weaker and more backward than in other major countries (Mol, 2009). Plus, in recent times the phenomenon of selling counterfeit goods that is sold under the name of prestigious brands but the quality is much less than expectation has tended to enlarge unbelievably which did put many large and small businesses into awkward and problematic situations. More specifically, businesses that do not have an outstanding reputation in the market cannot afford to prevent bad guys from stealing a brand. In conclusion, this has greatly influenced the Vietnamese coffee brand, and narrow consumer markets noticeably.
