Two buyers can agree on the same price per kilo for the same lot of Vietnamese specialty coffee and still end up paying very different landed costs — because the quoted price hides a choice about who handles freight, insurance, customs and risk along the way. That choice is the Incoterm. Under Incoterms 2020, still the current edition in 2026, three terms dominate Vietnam's green coffee trade: FOB, CIF and, less commonly, DDP. Here's what each one actually means for a buyer sourcing from Dak Lak, Lam Dong or Gia Lai.
FOB (Free on Board): the industry default
Under FOB, the exporter's responsibility ends once the coffee is loaded onto the vessel at the named Vietnamese port — typically Ho Chi Minh City (Cat Lai), Qui Nhon or Da Nang. From that point, risk and cost of ocean freight, marine insurance, and destination-port charges belong to the buyer. FOB is the reference price most Vietnam Robusta and Arabica contracts are quoted against, which makes it the easiest term for comparing offers across exporters and against the London Robusta futures benchmark. It suits buyers who already have a freight forwarder and import process in place and want full control over the shipping leg.
CIF (Cost, Insurance and Freight): convenience at a price
With CIF, the exporter arranges and pays for ocean freight and marine insurance through to the named destination port, then hands off risk to the buyer once goods are loaded at origin (risk transfers at the same point as FOB — only the cost allocation changes). CIF is useful for smaller or first-time buyers who don't yet have freight relationships, or who want one invoice covering product and shipping. The tradeoff is less visibility into which carrier and insurance terms are used, and typically a higher all-in price than arranging freight independently.
DDP (Delivered Duty Paid): full-service, rarely used
DDP pushes nearly everything onto the exporter: freight, insurance, import customs clearance and duties, delivered to the buyer's door. It's the lowest-hassle option for the buyer but the hardest for a Vietnamese exporter to price accurately, since import duty rates and clearance procedures vary by destination country and can change — as many buyers discovered when U.S. tariff policy shifted in 2026. Most exporters only offer DDP for smaller specialty micro-lot orders or long-standing accounts where both sides know the destination market well.
Quick Comparison
- Risk transfer point: FOB and CIF — at the ship's rail in the Vietnamese port. DDP — at the buyer's named destination.
- Who books freight: FOB — buyer. CIF and DDP — exporter.
- Who pays import duty and clearance: FOB and CIF — buyer. DDP — exporter.
- Best for: FOB — experienced importers with their own logistics. CIF — buyers wanting a simpler, bundled quote. DDP — small or recurring specialty orders where the exporter knows the destination market.
What This Means for 2026 Sourcing
Two developments make the Incoterm choice matter more this year. First, EU deforestation regulation (EUDR) compliance documentation now needs to move with the shipment regardless of term, so confirm in writing who is responsible for providing geolocation and traceability data before contracts are signed. Second, shifting U.S. tariff policy on Vietnamese goods has made landed-cost estimates under CIF and DDP quotes move faster than usual — if you're quoted CIF or DDP, ask your exporter how the quote would be adjusted if duty rates change between contract signing and shipment.
Not sure which Incoterm fits your order size and destination? Get in touch with our team to discuss FOB, CIF or DDP pricing for your next container of Vietnamese specialty coffee.