Vietnam exported 267,000 tonnes of pepper in 2023 for US$912 million, up 16.6% in volume but down 6% in value.

The US made up 23.5% of Vietnam’ total export earnings between January and November 2023, followed by China (14.1%), India (5.4%) and Germany (4.3%).

The Vietnam Pepper and Spice Association (VPSA) reports that Vietnamese pepper has a strong competitive advantage over the similar product from other producers such as Indonesia, Malaysia, India, Sri Lanka and Cambodia, thanks to incentives from the EU – Vietnam free trade agreement (EVFTA).

Currently, the import tax on ground or cracked pepper exported to the EU is slashed from 4% to 0%.

In addition, Vietnam’s pepper industry is highly appreciated for its processing capacity with the rate of processed products accounting for about 30% of total export turnover.

VPSA forecasts that pepper exports would remain at a low level because the local supply is no longer abundant, that would eventually fuel the price of this agricultural item. This year’s pepper crop is set to decrease by about 10-15%, estimated at 160,000-165,000 tonnes.

Source: VOV