Assessing opportunities of Vietnam's spice industry, Ms. Hoang Thi Lien - President of the Vietnam Pepper and Spice Association - said that population growth leads to increased demand for food and spices. On other hand, consumers are concerned about health issues, therefore, need for high-quality, origin spices increases. In addition, pepper is also considered an agricultural industry so it is easy to adapt to green standards, does not deforest and reduces use of pesticides.
Talking about challenges, Ms. Hoang Thi Lien said that big countries such as Europe and the United States tighten import regulations and at the same time, require Vietnamese products to meet standards and origin. Besides, Vietnamese pepper is subject to price competition from other countries such as Brazil and Indonesia. In addition, ensuring quality and safety of Vietnamese pepper and spices is still not thorough. Climate change leads to reduce product productivity; These factors require enterprises to always improve and innovate technology to suit market needs.
Vietnam ranks third in the world as a spice supplier and processor after India and China, but mainly exports products with low processed content.
Currently, entire Vietnamese spice industry has 14 factories with deep processing technology. To help develop industry and gradually form Vietnamese spice value chain in the world spice industry, Ms. Hoang Thi Lien recommended that the State consider supporting enterprises to invest in processing technology through form of preferential lending that prioritizes investment in science and technology or a partial subsidy (30-50%) of investment costs (like India and Sri Lanka) in form of investment in research and development. development (R&D).
In addition, it is necessary to create conditions for enterprises to have a favorable business environment, reduce administrative procedures and supplement investment incentive policies. At the same time, support increased budgets for trade promotion, marketing and promotion programs for Vietnamese spice products in international market. Ensure enforcement of regulations on food safety and product quality to ensure reputation of Vietnamese spice industry in international market. Encourage and support businesses in spice industry to promote innovation and creativity in production processes, products and management.
Currently, Vietnam still ranks Top 1 in the world in production and export. However, in context of competition and favorable market fluctuations for other crops such as coffee and durian, area and output of Vietnamese pepper are decreasing. If this trend continues while Brazil has had a breakthrough in the last 5 years from 80 thousand tons in 2018, it is now expected to reach 100 thousand tons in 2024 (exports reach 80 thousand tons in 2023).
Therefore, Ms. Lien said that all efforts and support should be focused on pepper plants to ensure stable area and output. Vietnam continues to take initiative and play a role in regulating market prices world market as it is today. From there, create conditions and resources to support other spice plants that have great potential but have not received adequate investment attention to make a breakthrough such as cinnamon and anise.
According to a report by Vietnam Pepper and Spice Association, in the first 16 days of March 2024, Vietnam exported 12,368 tonnes of pepper, with a total export turnover of 53 million USD. The main export enterprises include: Lien Thanh reaching 1,276 tonnes, Olam Vietnam reaching 1,139 tonnes, Nedspice Vietnam reaching 957 tonnes, Phuc Sinh reaching 900 tonnes, Haprosimex JSC reaching 824 tonnes.
In 2023, Vietnam exports pepper, cinnamon, anise, chili, nutmeg, ginger, turmeric... reaching 1.257 billion USD. Pepper and Spice Association expects that in the next 5 years, Vietnam's total spice export turnover will reach 2.2 billion USD.

Source: Vitic/ congthuong.vn