Vietnam remains top global peppercorn exporter

The Vietnam Pepper Association Chairwoman Hoang Thi Lien said in 2022, the product was at a disadvantage due to inflation and economic recession in many markets, and China’s “Zero Covid” policy, hence a reduction in export volume.

Vietnam has shipped about 230,000 tonnes of peppercorns overseas this year for more than $970 million, down 13% in quantity but up 2% in value annually. The export turnover of all spices is forecast to hit $1.5 billion.

Vietnamese enterprises import pepper from other countries such as Brazil and Indonesia for processing, then re-export for higher value. From the beginning of the year to the end of November, the nation purchased 34,273 tonnes of the product, an increase of 48.9% against the same period in 2021.

Vietnam has an advantage over other pepper production countries such as Indonesia, Malaysia, India, Sri Lanka and Cambodia thanks to the the EU-Vietnam Free Trade Agreement, Lien said. Under the trade pact, the EU’s import tax on Vietnamese ground pepper has been reduced from 4% to 0%.

The proportion of processed goods currently accounts for about 30% of its total export turnover, she added.

The expert suggested the sector work to capitalise on untapped potential in many markets, particularly Eastern Europe.