The export of the Vietnamese spice industry is expected to reach 1.5 billion USD in 2022. This is an increase compared to the result of 1.4 billion USD achieved in 2021…

At the workshop “Promoting Vietnamese pepper and spice exports under the EVFTA” organized by the Vietnam Pepper Association (VPA) on December 21, 2022, Mrs. Hoang Thi Lien, VPA Chairman, said that in 2022, the world context had many changes in geopolitics, finance, monetary policies of the countries, and the increased inflation, etc. These factors have greatly affected the consumption demand in the world.

However, according to Mrs. Lien, the pepper industry still achieved positive results. In 11 months of 2022, Vietnam exported 211,507 tonnes of pepper of all kinds, with a turnover of 911 million USD, down 14.9% in volume, but up 3.9% (equal to 34 million USD) in turnover compared to the same period in 2021.

Spice exports will reach about 1.5 billion USD. (Photo: Internet)

It is estimated that in the whole year, Vietnamese pepper exports will reach nearly 230,000 tonnes (down 13-14% in output). However, thanks to the price recovery, the pepper export turnover is expected to increase slightly by 2%, reaching 970 million USD (in 2021, the result was 950 million USD).

Overall, Vietnam’s spice industry is forecast to export about 1.5 billion USD in 2022, an increase compared to 1.4 billion USD in 2021.

Mrs. Lien assessed that the Vietnamese spice industry has stabilized and is entering the value chain of the world. With the achievements in 2022, Vietnam’s spice industry will maintain the pace of processing, production, and export, especially when businesses are fully aware and prepared for the Vietnam-EU Free Trade Agreement (EVFTA).

Specifically, in the spice chapter, there are tax lines with relatively low tax rates. For example, the import duty on ground or crushed pepper exported to the EU is reduced from 4% to 0%. Compared to countries with the same export advantages like Vietnam, Indonesia, Malaysia, and India have not signed any free trade agreement (FTA) with Europe.

Mrs. Hoang Thi Lien, VPA Chairman, was speaking at the workshop. (Photo: PC)

 “EVFTA is an advantage that businesses need to spend time investing and understanding it to take full advantage of the commitments in the agreement. Because this is the legal framework for Vietnam to go deeper into the EU market and expand other markets such as Eastern Europe, Poland, and Russia, etc.”, Mrs. Lien emphazised.

In addition, the Vietnamese pepper sector is also appreciated for its processing capacity, with the proportion of processed goods now accounting for about 30% of the total export turnover./.