RMIT alumnus boosts sustainable coffee trade in Vietnam

RMIT alumnus boosts sustainable coffee trade in Vietnam

Nguyen Duc Tuan Vinh, CEO of Tuan Loc Commodities, which ranks among the top five coffee exporters in Vietnam, and RMIT alumnus has dedicated his career to transforming Vietnam’s coffee industry through sustainable practices and innovative strategies.

Graduating from RMIT Vietnam with an Executive MBA in 2015 and later completing a Graduate Diploma in Global Trade in 2021, supported by a scholarship from the Hinrich Foundation, Mr Vinh’s extended education laid the foundation for his approach to business, emphasising sustainability and global trade. 

Alt Text is not present for this image, Taking dc:title 'news-1-rmit-alumnus-boosts-sustainable-coffee-trade-in-vietnam' Mr Vinh (standing, third from left) and his young, energetic, and data-savvy trading team at Tuan Loc Commodities.

Mr Vinh started his career in coffee and commodities trading in 2002. What has continually inspired him to work in this industry is the ability to create a positive impact and ‘do well while doing good’.

“In the early 2000s, the coffee world was experiencing extremely low prices due to a surplus of supply over demand. The ‘coffee crisis’, as it was known, hit my home province of Daklak particularly hard. Many farmers I knew had to cut back on daily necessities, and some even withdrew their children from school,” Mr Vinh recalled.

The vivid image of impoverished conditions of farmers in his hometown stayed with Mr Vinh, shaping his perception of the coffee industry. His trip to Sub-Saharan Africa two years later strengthened his belief that a sustainable global trade system is essential for addressing this ongoing crisis.

“Working for multinational coffee companies allowed me to travel to producing countries in Sub-Saharan Africa, Latin America, and developing Asia, where I witnessed firsthand that the crisis had not truly ended. While Brazil and Vietnam, the two most efficient producers, have improved economically, farmers in other producing countries continue to struggle,” Mr Vinh said.

“This experience ignited a determination in me to contribute to making the coffee industry more fair, equitable, and economically viable for farmers worldwide.

“I believe a more sustainable global trade system — one driven and measured not just by monetary means but also by sustainability goals such as poverty reduction, preservation of natural resources, and low greenhouse gas emissions — is the key to resolving this ongoing crisis.”

In 2021, Mr Vinh left a high-paying executive job at a leading global agribusiness to head up the international commodities trading division at Tuan Loc Group. Today, he serves as both chairperson of the board and CEO of Tuan Loc Commodities. 

“At Tuan Loc Commodities, my ambition is ignited by a vision of sustainability and excellence,” he said.

“Our mission is to craft value propositions that benefit our suppliers and customers while driving economic growth for our shareholders.

“We envision a ‘living landscape’ where thriving communities and healthy ecosystems coexist harmoniously, reflecting our commitment to responsible business practices.”

In December 2023, only three years after its establishment, Tuan Loc Commodities won the SME100 Fast-Moving Companies Award from the prestigious SME Asia Magazine. This award recognises and celebrates the significant growth and reliability of small and medium-sized enterprises (SMEs) in Asia.

Alt Text is not present for this image, Taking dc:title 'news-2-rmit-alumnus-boosts-sustainable-coffee-trade-in-vietnam' Mr Vinh represented Tuan Loc Commodities at the SME100 Awards.

Currently, in partnership with Nestlé SA (Switzerland), Tuan Loc Commodities is embarking on an innovative project to reduce GHG (greenhouse gas) emissions throughout the coffee supply chain.

“This collaboration, bolstered by Nestlé's expertise and financial strength, is a testament to the trust and confidence they place in our young company,” Mr Vinh said.

“It is a source of immense pride and motivation for us to push the boundaries of what is possible, creating a legacy of sustainability and innovation.”

With revenues exceeding $400 million in 2023 and $500 million expected for 2024, Tuan Loc Commodities ranks among the top five coffee exporters in Vietnam, the largest Robusta coffee exporting country in the world, and the second largest for all coffee.

Mr Vinh attributed the remarkable growth trajectory of Tuan Loc Commodities to his team that blends seasoned industry experience with youthful energy, and the vision he shares with the main shareholders of the group for a data-driven and end-to-end supply chain management, combined with strategic planning and unwavering commitment to excellence. And on top of that, his 22 years of expertise and network in commodities trading, both in Vietnam and international markets, have been instrumental in accelerating the company’s progress.

As one of the CQI Q Graders in Vietnam, Mr Vinh has been part of a movement that raises awareness and standards for coffee quality among Vietnamese businesses and consumers alike.

“Vietnam was once known primarily as a producer of cheap coffee, focusing on quantity over quality,” he said.

“The CQI Q Grader certification has been instrumental in shifting this perception. Today, high-quality specialty coffee is gaining significant traction in the Vietnamese market. This shift not only enhances the reputation of Vietnamese coffee globally but also ensures that farmers receive better compensation for producing higher-quality beans, fostering a more sustainable and prosperous industry.”

Mr Vinh believes the education he received at RMIT Vietnam has been a beacon that lights up the way toward a sustainable and impactful future for Tuan Loc Commodities.

“RMIT’s influence has been transformative, shaping our vision and mission to create a world where commerce and sustainability coexist harmoniously,” he said.

Story: Ha Hoang

Photo: Masthead – Unsplash – Mike Kenneally

09 September 2024

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