Vietnam remains top global peppercorn exporter
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The volume of Vietnam’s pepper exports to important markets has decreased this year, but the country has retained its top spot in the global rankings, heard a conference held in Ho Chi Minh City on December 21.
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.
Questions & Answers
Q.Why did Vietnam's pepper export volume decrease this year?
Why did Vietnam's pepper export volume decrease this year?
The reduction in export volume was attributed to inflation and economic recession in many markets, along with China's zero-Covid policy. These factors created a disadvantage for the product in 2022.
Q.How much has Vietnam earned from pepper exports this year, and how does this compare to last year?
How much has Vietnam earned from pepper exports this year, and how does this compare to last year?
Vietnam has earned over $970 million from shipping approximately 230,000 tonnes of peppercorns overseas this year. While the quantity is down 13%, the value is up 2% annually.
Q.How does the EU-Vietnam Free Trade Agreement benefit Vietnam's pepper exports?
How does the EU-Vietnam Free Trade Agreement benefit Vietnam's pepper exports?
The trade agreement has reduced the EU’s import tax on Vietnamese ground pepper from 4% to 0%. This gives Vietnam an advantage over other pepper-producing countries.
Q.What is the strategic reason for Vietnam importing pepper from other countries?
What is the strategic reason for Vietnam importing pepper from other countries?
Vietnamese enterprises import pepper from countries like Brazil and Indonesia for processing. This allows them to re-export the product for a higher value, improving their profit margins.
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