Vietnam produces 60% of the total volume of pepper consumed worldwide. Photo: VOV

Vietnam exported 267,000 tonnes of pepper in 2023 for $912 million, up 16.6% in volume but down 6% in value, VOV reported cited statistics by the agency.

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%.

Vietnam exported 267,000 tonnes of pepper in 2023 for $912 million. Photo: VNA

In addition, Vietnam’s pepper industry is highly valued 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.

To take advantage of the EVFTA and further penetrate the EU market, Vietnamese pepper firms should apply sustainable development and better meet the requirements of the EU market, according to experts.

The EU also continuously warns about pesticide residues and increases the frequency of inspection over the maximum residue levels (MRLs) for food in general and Vietnamese spices in particular, VietnamPlus said.

VPSA said the EU has issued over 500 criteria on MRLs and tends to have more requirements which are stricter and stricter.

Vietnam’s pepper industry is highly valued for its processing capacity. Photo: VNA

So, the association calls on parties in supply chains including farmers, enterprises, associations, and State management agencies to join hands in increasing Vietnamese pepper’s competitiveness in the world market.

Enterprises are suggested to improve processing facilities and production processes and diversify products.

They also need to update market information including those on tax tariffs, quarantine requirements, food safety, technical barrier, rules of origin, and green growth criteria.

In the whole value chain, risk management must be taken into account while origin traceability and product labeling must ensure transparency and accountability./.

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