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Vietnam's pepper export in the first 6 months of 2016 PDF Print
Thursday, 10 November 2016 10:17

VIETRADE - Not only is Vietnam the world’s #1 producer and exporter of pepper, but the pepper industry’s high quality is well known. Moreover, Vietnam’s pepper exporting exhibits promise and high potential for development. Vietnam has comprehensive favorable conditions for pepper production such as good natural conditions, a skilled labor force, and competent technological application. 


Appearing in Vietnam since the 17th century as a kind of long-term industrial crop, pepper has fast become a giant of Vietnam’s, and the world’s agriculture. This spectacular development began in the 1983-1990 period, based on fast-moving-up pepper prices. Rubber acreage in Vietnam grew continually, increasing to 9,200 ha, up spectacularly in comparison to the 400 ha of the 1970s. With average increases of 27.29%/year since 1996, Vietnam’s plantation acreage surpassed the 50,000 ha level in 2004. As of latter 2015, Vietnam had 80,000 hectares in rubber.


Natural conditions are favorable with fertile basaltic soil, subtropical climate, high humidity and rainfall. Vietnamese farmers are industrious, hardworking and eager to learn. Vietnam’s government and scientists support investment in GAP cultivation and technological application. The Vietnam pepper industry is now ready to pass every challenge as well as be confident in seizing opportunities for further development and for confirming continuously its position in the world market.


Black pepper yield for 2014 was 125,000 tons. With exports of 156,396 tons, average export value of 7,399 USD/ton, its revenue was US$1.210 billion. Year 2015 brought additional impressive figures. In 2015, despite export value of 135,000 tons, a decrease of 13% compared to 2014’s, total export value was at US$1.26 billion, a 5% increase over the corresponding period of the preceding year.


One of the good features of black pepper is that when properly preserved, within two to three years quality is not badly affected. With that nice advantage, Vietnamese farmers can control the price to temper unexpected crops. In particular, they can sell their product at a good price, keep products in stock when prices fall, and they themselves can regulate the price of green peppers. The effect is that pepper prices are always trending upwards, even at one point to the record of 220,000 VND/ kg. 


Acreage in pepper is skyrocketing. In the second quarter of 2015, total acreage was 79,000 ha. In the fourth quarter of 2015, this figure improved to 86,000 ha. Experts note that the figure will soon break the 100,000 ha threshold and then beyond, because many farmer households are switching to pepper.


Vietnamese Pepper Export Revenue 2010–2016 (in billion US$)


Source: General Department of Vietnam Customs

One-hundred countries and territories are now buying Vietnam pepper. The biggest buyers of Vietnam’s pepper are the US, UAE and Singapore with a 36% market share. Other main markets with rapid rise in value are Germany (36%), South Korea (33%), Spain (31%) and the UK (30%). Vietnam's farm export revenue should be at US$863 million for the first half of 2016, up 6.5% y-o-y (source: the General Department of Vietnam Customs).


Vietnam’s Pepper Exports by Country for the First 6 Months of 2016

 Source: General Department of Vietnam Custom

A newly approved plan to 2020 with vision towards 2030 sets forth that Vietnam’s pepper acreage will be maintained at 50,000 hectares with output of 140,000 tons in total. According to the plan, high-quality pepper products will at the 90% level. Black pepper will make up 70% while the rest will be white pepper. The plan sees earnings of US$1.25 billion from pepper exports by 2020.

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