
Vietnam Boosts Export Value in Spice Industry
Vietnam stands as a prominent global supplier of spice products, achieving an annual export turnover of approximately 1.5 billion USD.
Currently, Vietnamese spices are shipped to over 125 countries, establishing a strong presence in numerous key markets. Given that 95% of the products in this sector are exported, it is essential to prioritize investments in advanced processing techniques and trade promotion strategies to enhance value addition.
As the Vietnam Pepper and Spice Association reported, the country exported 87,400 tonnes of various spices in the first quarter of 2024, generating a revenue of 322.7 million USD. This reflects a decline of 24.1% in export volume and a 4.8% decrease in turnover compared to the same period in 2023.
Vietnamese spices
The primary spices exported include pepper, which constitutes 65% of the total with 56,800 tonnes and a revenue of 235.6 million USD, marking a 26% drop in volume and a slight decrease of 0.1% in value. Cinnamon follows, with exports totaling 16,000 tonnes and a turnover of 46.2 million USD, experiencing a 14.6% reduction in volume and a 15.7% decline in value.
Additionally, exports of anise, ginger, turmeric, cardamom, and nutmeg have also seen a downturn. Conversely, chili exports have risen, with an increase of 17.6% in volume and 52.8% in value.
Vietnamese spices are mainly exported to the US, European Union (EU), India, and China. Nevertheless, the export turnover to India and China has been on a decline recently.

Cinnamon from organic cinnamon-growing regions in Vietnam
According to Deputy Director Nguyen Dinh Chien of the Department of Industry and Trade in Yen Bai Province, the region boasts the largest cinnamon growing area in northern Vietnam, spanning over 86,000 hectares. Out of this, more than 14,000 hectares are dedicated to organic cinnamon cultivation, adhering to international standards.
Yen Bai currently houses 16 cinnamon essential oil factories, collectively capable of producing 1,000 tonnes of essential oil annually. Moreover, there are over 400 small-scale household cinnamon essential oil processing units, primarily utilizing manual techniques, with an average output of 300-800 kg per facility each year.
Despite exporting cinnamon products to more than 30 markets, including China, the Republic of Korea, Japan, Egypt, the US, Russia, and the UK, production and processing are still localized in Yen Bai. However, due to limited investment and outdated practices, productivity and quality remain subpar, failing to meet both domestic and export market demands.

Vietnamese cinnamon is exported to over 30 markets
For pepper products, the Department of Industry and Trade of Binh Phuoc Province has reported a significant decline in the export turnover of pepper products for the year 2023, which totaled merely 26 million USD, reflecting a 45% decrease compared to the same timeframe in 2022. At present, the sole exporter of spice products in the province is Nedspice Binh Phuoc Spice Processing Company.
This company operates a facility that processes various spices, including pepper, nutmeg, nutmeg peel, pimento pepper, cinnamon, ginger, cloves, dill, and coriander, with an annual processing capacity of 40,000 tonnes, of which 28,000 tonnes is dedicated to pepper.
In light of this situation, it is essential to harness the export potential of Vietnamese spices by promoting the establishment of high-quality, organic cultivation areas while simultaneously emphasizing deep processing to enhance value.

Pepper is a major export spice of Vietnam
Truong Tan Nhat Linh, the Deputy Director of the Department of Industry and Trade of Binh Phuoc Province, has indicated that spice processing enterprises in the region are also moving towards increased investment in processing capabilities.
Historically, the process of preparing pepper for sale involved primarily cleaning and drying after harvesting. However, in recent years, there has been a significant shift towards advanced processing techniques, resulting in a variety of products such as freeze-dried four-colour pepper powder, dried green pepper powder, black pepper powder, freeze-dried red pepper, ASTA black pepper, and sterilised white pepper, among others, to meet both domestic and international demand.
In addition to the diversification of processed products, trade promotion has become a crucial factor in introducing Vietnamese spices to global consumers.

The farmers harvest pepper
Hoang Thi Lien, President of the Vietnam Pepper and Spice Association, has indicated that the association is committed to developing a sustainable market strategy and enhancing the visibility of the Vietnamese pepper and spice sector. Furthermore, there is a focus on securing approval for participation in major international trade fairs in key markets.
To facilitate this, the association is taking proactive steps to formulate plans and register booths with event organizers well in advance, ensuring optimal locations and competitive pricing. Concurrently, member businesses are afforded the opportunity to adequately prepare their personnel and products for display, thereby enhancing trade prospects.