Vietnam sees three-digit growth in pepper exports to key markets

Vietnam, the world’s largest pepper exporter, enjoyed a three-digit growth rate month-on-month in August pepper shipments to some markets like India, the United Arab Emirates (UAE), Egypt and Pakistan.

Vietnam's pepper exports last month reached 20,140 tons, worth $75.34 million, an increase of 32% in volume and 32.4% in value compared to the same period in 2022. The export of this product is showing signs of increasing again, according to the General Department of Customs.

In the first eight months of the year, the figures were 188,060 tons and $615.5 million, up 17% and down 13.8% year-on-year, respectively.

The average export price in the period reached $3,273 per ton, down 26.3% compared to the same period last year ($4,441 per ton).

In August, Vietnam shipped 1,987 tons of pepper to India, 1,234 tons to the UAE, 662 tons to Egypt, and 639 tons to Pakistan, up 204.8%, 123.6%, 748.7% and 868.2% from July; and up 169.6%, 66.1%, 200.9% and 618.0% year-on-year, respectively.

According to the Vietnam Pepper and Spice Association (VPSA), in the eight-month period, its member companies recorded a 15.3% drop in export volume, with 117,153 tons, or 62.4% of the market share. The exports of non-VPSA enterprises accounted for 37.6% of the market share and increased 185.4% year-on-year.

Although India is the homeland of pepper, Vietnam is the world's largest producer and exporter. The Southeast Asian nation has six key pepper producing provinces, namely Binh Phuoc, Dak Nong, Dak Lak, Ba Ria-Vung Tau, Dong Nai and Gia Lai. Vietnamese pepper is currently present in more than 100 countries and territories.

Vietnam outpaces some other pepper producers such as Indonesia, Malaysia, India, Sri Lanka and Cambodia thanks to advantages from the E.U.-Vietnam Free Trade Agreement (EVFTA). The import tax on ground or crushed pepper exported to the E.U. decreased from 4% to zero. In addition, Vietnam's pepper industry is also appreciated for its processing capacity with processed products making up about 30% of total export turnover.

Vietnam's pepper exports in 2022 reached 226,000 tons, worth $963 million, down 13.3% in volume but up 2.7% in value compared to 2021, according to the Ministry of Industry and Trade.