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Country case: Vietnam – coffee
Share of global production 118 : 15%
Share of imports to Germany 119 : 22.5%
Vietnam was the world’s second largest coffee producer in 2012 120 . Coffee is
Vietnam’s second largest agricultural export commodity; exports from the
2012-2013 crop totalled 1.4 million tonnes worth €2.4 billion (US$3.03 billion)
or 2% of GDP 121 .
Coffee water facts:
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Coffee production provides a livelihood for approx. 2.6 million people – 600,000 of
them farmers 122 .
»The » Vietnamese coffee sector has the highest yields and productivity worldwide with
3.5 t/ha 123 .
»»
Major environmental impacts related to intensive coffee monocultures include
deforestation, land degradation, water overexploitation, and intensive fertiliser use
(2t/ha/year) 124 .
Efficient irrigation will
probably be one of the
most critical factors in
the near future.
Water situation
Vietnam has abundant surface water resources, of which the Red and Mekong
Rivers carry 75%. Approximately 70-75% of the annual runoff is generated
during the monsoon season (3-4 months). In combination with limited storage
and flood control infrastructure, this results in devastating floods during the
wet season and extreme low flows in the dry season 125 Pollution of Vietnam’s
.
surface, ground, and coastal water is increasing. The national Ministry of Natural
Resources and Environment classifies many rivers and river segments as
gradually “dead” due to downstream pollution and depletion caused by hydropower
and irrigation constructions. Groundwater resources are suffering from
contamination, salinity intrusion, overexploitation, and limitations in management.
As 60% of Vietnam’s total water flow originates outside of the country,
exploitation and use of water in the upstream countries has had intense impacts
on the amount of water flowing into Vietnam’s rivers 126 .
Physical risks
Approximately 87% of Vietnamese coffee cultivation is irrigated 127 . Main problems
are overirrigation and inefficient water use, which is why efficient irrigation
will probably be one of the most critical factors in the near future. Declining
water tables in the coffee production areas, caused by excessive water use
and droughts, lead to increased irrigation costs and harvest losses. In addition,
large quantities of water are needed for coffee processing. Climate change impact
scenarios for Vietnam indicate an increase in the industry’s water risk as
they predict a decline in rainfall, river flows, and the drop of groundwater level,
specifically in the Central Highland coffee cultivation area 128 . The Vietnam
Coffee and Cocoa Association predicts that the 2013-2014 coffee output will
decrease for the second year in a row due to droughts and heavy rains in the
Central Highlands, where 90% of Vietnam’s coffee is produced 129,130 .
The Ministry of Natural Resources and Environment expects an increase of
48% in total national water use by 2020, with a 30% increase for irrigation
purposes, 150% for urban use, and 190% for industry use. The different sectors’
competing needs will aggravate the water situation in Vietnam.
THE IMPORTED RISK Germany’s Water Risks in Times of Globalisation | 41