Pepper is not only an indispensable spice in global cuisine but also one of Vietnam’s key export commodities. With rapid growth in recent years, Vietnam has emerged as a leading country in pepper cultivation and processing, holding a dominant position in the global spice export industry.
1. Vietnam’s Pepper Production and Export Situation
Production Volume and Cultivated Area
Vietnam is not only the world’s largest pepper producer but also a key player in the global spice export industry. According to FAOSTAT (2023), in 2021, Vietnam’s pepper cultivation area reached 115,100 hectares. Ranking third worldwide after Indonesia and India. Despite not having the largest cultivation area, Vietnam still leads in pepper production. Accounting for about 60% of the global export market share.
Production Volume and Export Markets
In 2021, Vietnam’s pepper production reached 288,200 tons, maintaining its position as the world’s number one producer. The primary export markets include European countries such as the United Kingdom, Germany, Poland, and the Netherlands. Notably, the EU market remains a strategic partner, accounting for 29.75% of Vietnam’s pepper export share, according to Vietnam Customs data.
Stability and Future Prospects
Despite challenges such as price fluctuations and the impact of the COVID-19 pandemic, Vietnam’s pepper exports have shown remarkable stability. Participation in free trade agreements, notably the EVFTA (EU-Vietnam Free Trade Agreement), has opened up promising opportunities. This helping Vietnam’s pepper industry continue to strengthen its position in the international market.
2. Challenges and Opportunities for Vietnamese Pepper in the EU Market
Challenges from High Standards and Green Policies
Vietnamese pepper faces stringent standards from the EU market, particularly regarding Maximum Residue Levels (MRL) of pesticides. With over 500 MRL criteria in place, Vietnamese exporters must ensure that their products fully comply with food safety regulations. Furthermore, the EU’s “Green Deal” policy and carbon emission taxes have placed additional pressure on developing countries. Making it increasingly difficult to penetrate this demanding market.
The “Farm to Fork” Policy and New Directions
The EU’s “Farm to Fork” policy sets ambitious goals to reduce the use of pesticides and fertilizers while increasing organic farming areas. Although this poses challenges, it also presents opportunities for Vietnam to shift toward sustainable production models that meet the high standards of this premium market.
3. Opportunities from EVFTA – A Competitive Edge for Vietnam’s Pepper Industry
Tariff Preferences and Market Expansion
The enforcement of EVFTA has created a significant competitive advantage for Vietnam’s pepper industry, as the import tariff on ground or crushed pepper exported to the EU was reduced from 4% to 0%. This preferential treatment gives Vietnam a considerable edge over competitors like Indonesia, Malaysia, and India, which have yet to secure similar free trade agreements.
Integration into the Global Value Chain
Vietnam’s pepper exports are not only recognized for their processing and export capabilities but also for their compliance with global standards. EVFTA paves the way for Vietnamese pepper to integrate more deeply into the international value chain, providing opportunities to expand market share and solidify its position in the global spice market.
4. Strategies for Enhancing the Quality and Sustainability of Vietnamese Pepper
Compliance with Quality and Safety Standards
To maintain and grow its market share in the EU, Vietnam’s pepper industry must strictly adhere to food safety standards, monitor pesticide and fertilizer residues, and move toward sustainable and safe production practices.
Modernizing the Production Process
Integrating farmers, processing enterprises, and agricultural organizations is key to modernizing the production process and enhancing product quality. Enterprises must invest in modern processing technology, improve production processes, and stay up to date with export standards to meet the stringent requirements of the EU.
Investment in Research and Development
Understanding market demands and analyzing consumer segments allow businesses to optimize export strategies. Investing in research and development (R&D) and organizing trade promotion programs enhances competitiveness and facilitates market penetration.
5. Visimex – Leading the Way in Organic and Sustainable Pepper Exports
With over a decade of experience in organic pepper exports and sustainable production, Visimex has established itself as a pioneer in the international market. We are committed to implementing sustainable agricultural models from promoting organic farming to modernizing production processes. Meeting the strictest food safety and environmental protection requirements also.
With a mission to elevate the value of Vietnamese agricultural products, Visimex continues to be a bridge that connects Vietnamese pepper with the most demanding markets, reaffirming its solid position on the global trade map.
