Increased trade barriers and international competition
According to Vietnam Pepper and Spice Association (VPSA), in the first seven months of 2026, entire Vietnamese pepper and spice industry maintained positive growth momentum, with exports estimated at approximately 165,000 tonnes, worth US$1.7 billion, an increase of 13.8% in volume and 8.3% in value compared to the same period in 2025. This result reflects efforts of entire industry chain, from producers and cooperatives to processing and exporting enterprises, contributing to overall growth target of agricultural sector.
Many businesses and experts believe that these positive export signals are not enough to dispel concerns about the industry's future prospects. According to Vietnam Pepper and Spice Association (VPSA), global spice trade is rapidly changing, no longer primarily driven by supply and demand, but increasingly influenced by geopolitical factors, regional conflicts, supply chain disruptions, fluctuating logistics costs and growing trend of trade protectionism.
Notably, regulations on sustainable development, traceability, carbon emission reduction, deforestation prevention and environmental responsibility are becoming mandatory requirements for goods to access major markets such as the EU, the US and Japan. Meanwhile, competitive pressure is also increasing as many pepper-producing countries, especially Brazil, are expanding their cultivated areas, increasing production and improving their competitiveness.
According to VPSA, although Vietnam has held the world's number one position in pepper production and export for over 20 years and is the world's largest exporter of cinnamon, this advantage will be difficult to maintain if the industry does not soon transform its growth model. Ms. Hoang Thi Lien, Chairwoman of VPSA, stated that there is currently limited room for expanding cultivated area due to limited land resources, competition with other crops and requirement to comply with European Union's Regulation on Deforestation (EUDR). Therefore, pepper industry cannot continue to compete on volume or low prices but must shift to competing on quality, brand and added value.
Recommendations for iproving plicies to mntain export position
According to VPSA, to achieve double-digit growth targets in 2026 and maintain export markets, businesses need to strengthen investment in raw material areas, closely link with farmers, control pesticide residue levels, and improve traceability capabilities to meet increasingly stringent requirements of importing markets.
In addition, businesses need to proactively adapt to green consumption trends, develop regenerative agriculture, circular economy, reduce carbon emissions, and use water resources efficiently. This is no longer just a trend but has become a condition for participating in the global supply chain.
Based on the industry's practical experience, VPSA recommends that management agencies continue to improve mechanisms and policies to support businesses in green transformation; promote digital transformation in traceability; strengthen negotiations to open markets, remove technical barriers, and support businesses in promptly updating new regulations of importing markets.
The association also proposed increasing investment in research on varieties, applying science and technology, building industry databases, and developing national brands for Vietnamese pepper and spices to enhance competitiveness in the increasingly stringent global trade environment.
Mr. Nguyen Do Anh Tuan, Director of International Cooperation Department (Ministry of Agriculture and Environment), believes that business community needs to shift from a passive to an active approach to integration; building brands, expanding markets, and participating more deeply in the global supply chain to increase product value.
According to Mr. Tuan, with its position as the world's leading pepper producer and exporter and the world's largest cinnamon exporter, Vietnam still has much room for market expansion. However, to take advantage of opportunities, the association and businesses need to proactively strengthen international cooperation and build an image of Vietnamese pepper and spices associated with quality, responsibility and sustainable development.
To support the industry, Mr. Nguyen Do Anh Tuan suggested that VPSA continue to play its role as a bridge between businesses and management agencies; proactively update market information, provide early warnings of technical barriers; encourage businesses to participate in the traceability system and maintain reputation of Vietnamese pepper and spices.
In addition, the association and businesses need to promote investment in deep processing, establish sustainable links with raw material areas, diversify export markets and coordinate with ministries and agencies to effectively implement solutions on quality control, planting area codes, remove difficulties for goods at risk of declining export value and closely monitor new policies such as EUDR, IUU, or tariffs of major markets to proactively respond.

Source: Vitic/ congthuong.vn