Digitalisation and sustainable business model transformation in the coffee value chain in the Central Highlands of Vietnam

Digital tools are often used by businesses as communication and connecting technologies. However, it is not well understood how these digital technologies affect the (sustainable) transformation of global value chains. This paper is based on a case study of the coffee value chain in Vietnam. Vietnam is an important producer in the coffee sector, but faces many environmental and social issues. The question is how digitalisation can lead to sustainable transformation. The case study included observations, interviews with value chain actors, and reading grey literature and company websites. The results showed that foreign policies influence digital technology use in coffee production in Vietnam. To follow these policies, large trading companies in the mainstream sector develop digital traceability systems. However, they sometimes seem to bypass the diversity of smaller actors in the value chain. Although small businesses in alternative value chains use similar digital tools, they operate on a smaller scale based on direct contact. Nevertheless, these alternative value chains are in a niche market and struggle with profitability. Our paper has contributed, via an empirical case study, to an understanding of the dynamics between digitalisation and sustainable transformation pathways in global value chains.