VIETNAM RANKS THIRD IN THE WORLD IN THE SUPPLY AND PROCESSING OF SPICES

The whole spice industry in Vietnam has 14 deep-processing factories. Therefore, it is necessary to have policies to encourage and support enterprises to invest in the processing industry.

Ms. Hoang Thi Lien – Chairman of the Vietnam Pepper and Spice Association (VPSA)– said that the increase in population led to an increase in demand for food and spices. On the other hand, consumers are concerned about health issues, so the demand for high-quality, clear-origin spices increases. In addition, pepper is considered an agricultural sector, so it is easy to adapt to green standards, anti-deforestation, and reduction in the use of pesticides.

The whole spice industry in Vietnam has 14 deep-processing factories.

Regarding challenges, major markets such as Europe and the US have tightened import regulations, and at the same time, required Vietnamese products to meet the standards and origin. Besides, Vietnam’s pepper is subject to competition from other countries in terms of price such as Brazil and Indonesia. The quality and safety of Vietnam’s pepper and other spices have not been thoroughly ensured. Climate change leads to a reduction in product yields. These factors require enterprises to always improve and innovate their technology in accordance with market needs.

Vietnam ranks third in the world in the supplying and processing of spices after India and China, but mainly exports products with low-processing content.

Currently, Vietnam is leading in the world in terms of production and export. However, in the context of competition and favorable market fluctuations for other crops such as coffee and durian, the area and production of Vietnam’s pepper are being reduced. Meanwhile, Brazil has had a breakthrough in the last five years from 80,000 tons in 2018 to 80,000 tons in 2023 (expected to reach 100,000 tons in 2024).

Therefore, Ms. Lien said that all efforts and support should be focused on pepper to ensure a stable area and output. Vietnam needs to play a proactive role in regulating world market prices as at present. From there, we can create conditions and resources to support other spices that have great potential but have not received corresponding investment to break through such as cinnamon and star anise.

According to the report of the VPSA, in the first 16 days of March 2024, Vietnam exported 12,368 tons of pepper, with a total export turnover of 53 million USD.

In 2023, Vietnam exported pepper, cinnamon, star anise, chili, cardamom, ginger, turmeric, etc reaching 1.257 billion USD. The VPSA expects that in the next five years, Vietnam’s total spice export turnover will reach 2.2 billion USD./.