Political, Economic, and Legal Systems

Brazil:

Currently Dilma Rousseff is the President of Brazil. A recent report exposed Brazil’s slow economic growth and rising inflation. President Rousseff started a program called Brasil Maior in order to promote industry in the nation. The program promotes domestic production as well as exports and is funded by the state. This program in part is meant to solve the continuing problem of decreasing competitiveness and increasing deindustrialization. In other words, the country is promoting exports of their domestic products. This program shows a clear path of where Brazil is heading. While Brazil is promoting exports, it is unclear whether Brazil will be as welcoming in the future of outside companies being built in their country.

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Source: http://www.as-coa.org/articles/summary-brazil-2014-economic-and-political-prospects

 

 

 

Vietnam:

According to eastasiaforum.org, “The coffee industry is a very important part of Vietnam’s agricultural sector. It contributes to Vietnam’s GDP, creates more jobs and helps socio-economic development in the Tay Nguyen area.” Although this is true, and the sale of coffee has increased each year, there is still some risk involved. Their coffee bean prices fluctuate due to weather, the international market, and overall supply and demand. The Vietnamese export price is lower due to lower quality coffee (mostly due to how industry is run in Vietnam).

The government in Vietnam has created many policies to promote coffee exports, just like in Brazil. By extending report credit payment, and providing tax refunds, coffee exports in Vietnam continue to grow, but there is still a long way to go. Vietnam still cannot cope with the negative fluctuations in the global price of coffee.

Recently the government did create a Coffee Coordinating Board in Vietnam that included and promoted foreign enterprises. This shows they are open and eager to include foreign companies in their future developments.

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Source: http://www.eastasiaforum.org/2014/03/15/bitter-taste-brewing-in-vietnamese-coffee/

Indonesia:

In recent years, Indonesia’s economy has grown more and more; becoming a popular candidate for FDI. This positive growth paired with a now stable political situation is pushing Indonesia from low to middle income. The country has transitioned from an authoritarian rule in 1998 to its current state of democracy.

According to data from the Indonesian Coffee Exporters Association (AEKI), there are plans in the works to extend the state’s coffee plantations and update the existing plantations. All of this is in hopes of increasing annual coffee production. Coffee production per hectare is still low compared to other large coffee producing countries, but with Indonesia’s current political and economic situation, it is the perfect time for the state to make their move and expands its impact in the Global Coffee Industry.

Sources: http://www.gbgindonesia.com/en/main/why_indonesia/why_indonesia.php

http://www.indonesia-investments.com/doing-business/commodities/coffee/item186