Advancing deep processing to elevate Vietnam's cacao value chain

Despite possessing rare high-quality cacao, Vietnam remains in a chocolate trade deficit, as imported chocolate accounts for about 60% of the domestic retail market. The situation has intensified the need to promote deeper processing and increase the value added from cacao to chocolate, helping Vietnam build a more sustainable value chain for its cacao sector.

Vietnam’s cacao quality and growing chocolate demand

Vietnamese high-quality cacao beans are recognized as rare and high quality by the ICCO. The beans are supplied to markets ranging from Malaysia and Japan to Europe and the United States.

Chocolate demand is also expanding as younger generations have greater exposure to Western culture. Chocolate has become a meaningful gift for couples, friends, and corporate customers on occasions such as Valentine’s Day, Christmas, weddings, and New Year.

From cacao to chocolate: processing and premium trends

Cacao is the raw material for chocolate. After grinding, cacao beans are separated into cocoa butter and cocoa powder. White chocolate is made from cocoa butter combined with sugar and milk, while dark chocolate contains cocoa powder. The higher the cocoa content, the more bitter and less sweet—an attribute aligned with consumer preferences in the premium segment.

Rising incomes for farmers, but Vietnam still imports most chocolate

About a decade ago, many households in Đắk Lắk cut down cacao trees due to low prices and uncertain output. More recently, cacao has rebounded strongly thanks to linkages between farmers and businesses. Purchase prices for fermented cacao beans (dry beans) are reported at 150,000–230,000 VND/kg, providing more stable and relatively high income for growers.

However, Vietnam’s cacao sector still faces challenges. Even with significant potential, production and exports remain limited relative to its advantages. Vietnam continues to run a chocolate trade deficit, with imported chocolate making up around 60% of the retail market and the market growing by 15–20% per year.

One key reason is that domestic products are still weak in terms of quality, packaging, and premium positioning. In addition, the cost of producing and storing fresh chocolate is high, leading many companies to import rather than manufacture locally.

Deep processing and export reach

Beyond exporting raw materials, several domestic cooperatives and enterprises have invested in deep processing. “Made in Vietnam” chocolate products have been present in more than 20 countries.

International experts note that Vietnam’s smaller scale can be an advantage when it focuses on high quality and distinctive flavors suited to the premium segment. In particular, Fine Flavor Cocoa offers opportunities to export premium chocolate to demanding markets such as Japan, Europe, and North America.

Building the value chain: company-led sourcing and quality control

At a webinar, Lê Văn Hoàng, CEO of Bazan Đắk Nông Coffee Co., Ltd., said the company began working with cacao in 2017. At that time, the pre-processing steps by farmers in the Central Highlands were not ensuring consistent quality. In response, the company researched, organized processing, and sought market outlets. By 2017–2018, higher-quality cacao lines gradually improved, enabling the company to approach large customers.

The company has since built a stable raw-material area, partnering with multiple farming households and maintaining continuous training. The core factor linking farmers is clear economic benefit and the company’s reputation. It organizes experience models and practical training so farmers can directly verify effectiveness. When farmers apply the process successfully, the company commits to purchasing at a higher price than the market.

In parallel, the company supports facilities such as pre-processing greenhouse systems and production equipment to reduce labor and improve efficiency. Cooperative groups are formed, and farmers evaluate quality through tasting and internal competitions. Products meeting standards are purchased at 15,000–20,000 VND/kg higher than other levels, creating incentives to raise quality.

Currently, the company works with about 5 cooperatives and more than 100 coffee households; for cacao, it cooperates with 6–7 cooperatives, forming a stable supply source.

“In the context of increasingly strict global regulations, Vietnam’s cacao and coffee sectors need to shift toward transparency, quality control across the entire chain, and stronger linkages with farming households. This is an important direction to enhance value and develop sustainably.”

Export markets and traceability practices

In addition to serving the domestic market, the company’s chocolate products have reached Japan and the United States. The company previously operated a sales point in Osaka and continues distribution. Its two main product lines are coffee and cacao, with cacao processed into chocolate.

Notably, each production batch includes a detailed “profile” documenting the growing area, processing steps, and quality, enabling full traceability.

Global market outlook and Vietnam’s opportunity in premium cacao

Tô Xuân Phúc, an expert from Forest Trends, said the global chocolate market was about 130.72 billion USD in 2024 and is forecast to reach 172.89 billion USD by 2030, implying average growth of 4.17% per year. He also noted that organic, vegan, and sugar-free segments are growing strongly.

Meanwhile, Vietnam’s cacao output is only about 6,000 tons per year, but it has high quality, creating opportunities for companies to participate in the premium segment.