Vietnam pepper exports reclaim billion-dollar mark after a decade
Vietnam pepper exports reclaim billion-dollar mark after a decade
Vietnam's pepper sector is enjoying rising prices and a return to billion-dollar exports, prompting industry-wide efforts to boost sustainable production and explore new market opportunities.
According to the General Department of Customs, in October, Vietnam's pepper exports reached 18,415 tonnes, valued at $120.6 million, increasing 7.7 per cent in volume and 9.1 per cent in value compared to the previous month. Cumulatively in the first 10 months, pepper exports totalled 218,732 tonnes, valued at $1.11 billion, marking a 3 per cent decrease in volume but a significant 47 per cent increase in value compared to the same period last year.
With these figures, Vietnam has reclaimed its billion-dollar export milestone after a decade.
According to vtv.vn, Hoang Thi Lien, chairwoman of the Vietnam Pepper and Spices Association (VPSA), estimated that Vietnam's pepper exports could reach $1.4 billion this year. "This would be a record for the industry. This result is due to the ongoing price cycle, with current prices maintaining levels nearly double those of previous years," she said.
Pepper exports over the 10-month period to the US saw robust growth of 47 per cent, while the EU market increased by 32 per cent. However, exports to China dramatically declined by 84 per cent. Lien said that growth in the US and EU markets had compensated for the significant drop in the Chinese market. Consequently, export volumes decreased by only 1.9 per cent compared to the same period in 2023.
To ensure sustainable development, according to Lien, the VPSA has defined a vision of becoming a high-quality spice supplier, produced sustainably, with traceable origin, and meeting importing countries' regulations. The association's guidelines include expanding sustainable cultivation areas, reducing pesticide residues, lowering carbon emissions, reducing greenhouse gases, providing in-depth farmer training, increasing added value, and market development.
Nguyen Quy Duong, deputy director of the Plant Protection Department under the Ministry of Agriculture and Rural Development, stated that the country is striving to transform the pepper industry into a green, ecological, and sustainable agricultural sector. The goal is not only to maintain a presence in traditional markets, but also penetrate and dominate the Halal market in Indonesia and the Middle East.
"This is a highly promising market for Vietnamese pepper. The Halal export market for food and spices is projected to reach around $10 trillion," Duong said.
However, Duong said that this market has its own unique standards. Vietnam already has organisations certifying Halal standards. In this phase, all enterprises seeking to export must be trained, and farmers must be trained in cultivation techniques to successfully enter this market.
Currently, Vietnam is one of the world's top three spice production and export countries, accounting for over 11 per cent of the global spice export market share. Statistics show 35 pepper processing plants have achieved standards like ISO, HACCP, BRC, ESA, and ASTA, with a processing capacity of around 140,000 tonnes annually. Many plants using steam sterilisation technology have helped Vietnamese pepper, especially high-value-added varieties like ground black pepper, ground white pepper, pickled pepper, and freeze-dried pepper, increasingly dominate the pepper export structure.
