Major Vietnamese coffee exporter Vinh Hiep Company Limited on Wednesday broke ground on a VND750 billion ($29 million) coffee processing factory in the Vietnam-Singapore Industrial Park III (VSIP III), Ho Chi Minh City.

The plant, spanning 10 hectares in the Tan Uyen ward, is designed with an annual capacity of 300,000 tons. First incorporated into the company's expansion plans in 2025, the facility will feature automated production lines and advanced logistics infrastructure.

Illustration of Vinh Hiep's coffee processing plant in VSIP III, HCMC, southern Vietnam. Photo courtesy of the firm.

The plant’s location at VSIP III is expected to strengthen Vinh Hiep’s supply chain and improve its ability to serve customers. Its access to transport networks, logistics centers, seaports, and major economic hubs in southern Vietnam is expected to support more efficient commercial operations.

With more than 25 years of operations, Vinh Hiep is one of Vietnam’s leading coffee exporters. The company has built a network involving more than 20,000 farming households in Gia Lai province and other major coffee-growing areas in the Central Highlands. According to company records, its coffee exports topped $845.2 million in 2025.

The groundbreaking comes as Vietnamese coffee exporters navigate shifting global commodity prices. Data from the Ministry of Agriculture and Environment shows that Vietnam exported 1.4 million tons of coffee worth $6.5 billion in the first nine months of 2026.

While export volumes rose 15.4% year-on-year, total value declined 7.3% due to average export prices falling nearly 20% to around $4,537 per ton.