AsemconnectVietnam - Vietnam’s domestic pepper prices remained stable on Tuesday at 144,500–146,500 dong per kilogram, although exporters warned that escalating tensions in the Middle East could weigh on demand and put short-term pressure on prices.

Domestic market
According to market observations, pepper prices across Vietnam’s producing regions held steady.
Dak Lak and Dak Nong recorded the highest buying price at 146,500 dong/kg, followed by Ba Ria–Vung Tau at 145,000 dong/kg. Prices in Gia Lai, Binh Phuoc and Dong Nai were quoted at around 144,500 dong/kg.
Global market
Global pepper prices also showed little change in the latest trading session.
Data from the International Pepper Community (IPC) showed that Indonesian Lampung black pepper was quoted at $6,953 per ton, while Brazil ASTA 570 black pepper stood at $6,050 per ton. Malaysian Kuching black pepper was traded at $9,100 per ton.
Vietnam’s export black pepper prices remained stable at $6,400–6,500 per ton for 500 g/l and 550 g/l grades.
Meanwhile, Muntok white pepper from Indonesia was quoted at $9,262 per ton, while Malaysian white pepper and Vietnamese white pepper were priced at $12,100 per ton and $9,150 per ton, respectively.
Middle East tensions disrupt trade
According to Vietnam’s Cong Thuong newspaper, Le Thanh Son, Director of the Commodity Trading Division at Simexco Daklak, said the Middle East is one of the key markets for Vietnam’s coffee and pepper exports.
Major markets in the region include Israel, Jordan, Kuwait, Saudi Arabia, Syria, Iran and the United Arab Emirates.
During the 2024–2025 crop year, Simexco exported 2,519 tons of pepper to the Middle East, accounting for 17.5% of its total shipments. Vietnam as a whole exports around 45,000 tons of pepper annually to the region.
The Middle East market is considered stable with diverse quality requirements and relatively attractive price levels, giving exporters an advantage if they build strong customer networks there.
However, the escalating conflict in the region is creating immediate impacts on global trade. Crude oil prices have surged, driving up maritime transport costs, while shipping lines have added war risk insurance surcharges that can reach up to $2,000 per container.
Key shipping routes such as the Red Sea and the Strait of Hormuz face risks of disruption or rerouting, potentially increasing transit times and logistics costs.
In response, Simexco Daklak has temporarily suspended shipments to the Middle East until the political and military situation stabilizes.
The company is also closely monitoring market developments and maintaining communication with customers. Some clients in Iran are currently facing communication difficulties due to telecommunications disruptions.
Meanwhile, the company is working with customers to accelerate payments for shipments that have already arrived at ports, particularly major transshipment hubs such as Jebel Ali and Haifa. Shipments that have not yet been delivered to conflict-affected areas have been temporarily halted, while some cargo already moved to ports may be recalled and held until conditions stabilize.
Potential pressure on pepper prices
The Middle East accounts for around 18% of Simexco’s exports and roughly 17.5% of Vietnam’s total pepper exports.
If the region’s market is disrupted, demand could decline significantly, potentially putting downward pressure on pepper prices in the short term.
Beyond the Middle East, rising logistics costs are also affecting global agricultural trade. International traders say tensions in the region have pushed up shipping costs for coffee and other commodities from Vietnam to Europe and Gulf countries, while risks of supply chain disruptions are increasing.
Some traders noted that although sea routes from Vietnam to Europe have not been completely disrupted, freight rates have at least doubled compared with earlier levels.
Exporters seek alternative markets
Amid geopolitical uncertainty, Vietnam’s Import-Export Department has advised exporters to diversify markets and take advantage of free trade agreements (FTAs) to expand shipments to regions with more stable demand.
Agricultural exporters are also adjusting their business strategies. In the short term, companies are accelerating vessel bookings for shipments to alternative markets to avoid further increases in freight rates.
They are also actively seeking replacement markets for pepper, which is particularly vulnerable to trade disruptions with the Middle East.
In the medium to long term, exporters believe the Middle East conflict may continue but could gradually stabilize within 30–45 days.
Once the situation improves, the region is expected to remain a key market for Vietnamese coffee and pepper exports, thanks to its stable demand and relatively high value.
Source:Vitic