Tiếng Việt1. Current State of Vietnam’s Pepper Export Industry
Vietnam – The “Global Pepper Capital”
Vietnam has long been recognized as the world’s leading producer of pepper. Supplying approximately 50% of global pepper export, the country plays a decisive role in shaping international prices and market dynamics. According to the Vietnam Pepper and Spice Association (VPSA), by February 2024, Vietnam had exported 31,133 tons of pepper, generating nearly USD 125 million.
Although export volume decreased by 23.7% compared to the same period last year, the export value dropped only 2.9%, indicating a robust recovery in pepper prices. The average export price of black pepper rose to USD 3,840 per ton (up 13.9% year-over-year), while white pepper reached USD 5,459 per ton (up 8.1%).
FDI Enterprises Leading the Way
In the list of top pepper exporters, two foreign direct investment (FDI) companies—Nedspice Vietnam (Netherlands) and Olam Vietnam (India)—secured the first and second positions, respectively. In the first two months of 2024, Nedspice Vietnam exported 3,555 tons (a 44% increase), while Olam Vietnam shipped 3,229 tons (a 32% increase). Meanwhile, domestic companies, though still in the top five, experienced a significant drop in export volumes.
Pepper is one of Vietnam’s key agricultural products, has proven its number one position in the world for over 20 years.
Strong Growth in Export Turnover in 2024
In the first half of 2024, Vietnam’s pepper export turnover reached USD 634.2 million, a 30.5% increase compared to the same period in 2023. The average export prices hit record highs, with black pepper at USD 4,365 per ton and white pepper at USD 5,983 per ton. This growth underscores the global appeal of Vietnamese pepper.
2. Prospects for Vietnam’s Pepper Export Industry
Potential to Rejoin the Billion-Dollar Club
With export turnover reaching USD 690.7 million by mid-July 2024, Vietnam’s pepper industry is on track to rejoin the billion-dollar export group, a milestone last achieved in 2017. This remarkable growth stems not only from higher export prices but also from sustainable development strategies implemented by enterprises and industry associations.
Promising International Markets
Major markets such as the EU, the U.S., and the Middle East continue to dominate Vietnam’s pepper exports. Among these, the EU stands out, with Phuc Sinh holding 15% market share in spices, including pepper. Rising demand and free trade agreements like the EVFTA provide Vietnamese pepper with significant competitive advantages.
Pepper Prices Expected to Rise Further
According to Mr. Hoang Phuoc Binh, Vice Chairman of the Chu Se Pepper Association, pepper prices are projected to remain high for years due to limited supply and strong demand. This scenario creates favorable conditions for Vietnam to consolidate its leading position and enhance export value.
The recovery of Vietnam’s pepper export industry and strategies to continue to maintain its leading position in the global market.
3. Challenges and Solutions
Challenges:
- Competition from Other Nations: Countries such as Brazil and Indonesia are heavily investing in cultivation and processing technologies, posing stiff competition for Vietnam.
- Difficulties in Expanding Cultivation Areas: Farmers are hesitant to replant pepper due to risks and lower profitability compared to other crops like durian and coffee.
- Weather Fluctuations: Increasingly erratic climate conditions significantly affect productivity and quality.
Solutions:
- Enhancing Value Addition: Invest in deep processing and develop processed pepper products like ground pepper and pickled pepper to boost export value.
- Promoting Trade: Participate in international fairs and build the “Vietnamese Pepper” brand to increase market recognition.
- Supporting Farmers: Provide high-quality pepper varieties, train in sustainable farming techniques, and help farmers mitigate risks.
- Applying Technology: Use modern technologies to improve productivity, quality, and reduce production costs.
Vietnam’s pepper export industry is poised for a strong resurgence after significant disruptions. With sustainable development strategies and government and organizational support, Vietnam can reclaim its position in the billion-dollar export group. Seizing opportunities and overcoming challenges will be key to maintaining this vital industry’s role in the nation’s agricultural economy.
4. Pepper Supply and Export by Viet Thien Phu Company
With continued investment and support, Vietnam’s pepper industry is poised to reclaim its position in the billion-dollar export club.
Viet Thien Phu Industrial Production Co., Ltd, a standout in the agricultural sector, particularly pepper, has solidified its position in the international market. With a mission to deliver high-quality Vietnamese pepper to even the most demanding markets, the company has heavily invested in modern production lines that meet international standards like HACCP, ISO, and GlobalGAP.
Viet Thien Phu’s pepper export products are diverse, including black pepper, white pepper, and ground pepper, all distinguished by superior quality. The company focuses on building a sustainable value chain, from directly partnering with farmers to ensure a stable supply to innovating processing technologies that preserve the natural flavor and quality of its products.
Thanks to its flexible business strategy and visionary leadership, Viet Thien Phu has expanded its export network to over 50 countries, including the U.S., Europe, and the Middle East. The company is committed not only to enhancing the value of Vietnamese agricultural products but also to fostering sustainable development in the country’s pepper industry on the global stage.