Sustainable Development of Vietnam’s Pepper and Spice Industry

Vietnam’s pepper and spice industry continues to hold a significant position in the global market, accounting for 40% of total production and nearly 55% of the world’s pepper export turnover.

On March 3, in Ho Chi Minh City, the Vietnam Pepper and Spice Association (VPSA) inaugurated the Vietnam Pepper and Spice Industry International Conference 2025 (VIPO 2025), under the patronage of the Ministry of Agriculture and Environment and the Trade Promotion Agency (Ministry of Industry and Trade).

The conference gathered over 300 delegates, including experts, producers, exporters, farmers, and local government representatives. Notably, 51% of attendees were international guests from leading associations in India, China, and other countries, while 40% were buyers, promising a vibrant trade exchange platform.

This event marks the beginning of a series of activities aimed at fostering industry growth and expanding cooperation opportunities for Vietnamese pepper and spice exporters.

Vietnam’s Pepper and Spice Industry at a Glance

At the opening ceremony, Mr. Nguyen Quy Duong, Deputy Director of the Department of Crop Production and Plant Protection, Ministry of Agriculture and Environment, emphasized that Vietnam benefits from favorable climatic and soil conditions, providing a solid foundation for cultivating industrial crops, fruit trees, and especially pepper.

As of late 2024, Vietnam’s pepper cultivation area reached 110,500 hectares, with an average yield of 2.6 tons per hectare, double the global average (1.27 tons/ha), and an output of approximately 200,000 tons.

In 2024, Vietnam’s pepper export turnover reached $1.32 billion. Remarkably, while the pepper cultivation area is only about 15% of the coffee-growing area and 12% of the rubber-growing area, it contributes about 23% of coffee export value ($5.6 billion) and more than 38% of rubber export value ($3.4 billion), demonstrating its vast growth potential if properly leveraged.

Besides pepper, Vietnam is also a leading producer and exporter of other spices such as cinnamon (nearly 200,000 hectares, accounting for 20% of global cinnamon cultivation), star anise (55,000 hectares, second only to China), and various spices like ginger and turmeric, serving both domestic and international markets.

Opportunities for Sustainable Growth

Mr. Nguyen Quy Duong noted that the increasing global demand for natural and organic spices presents significant opportunities for Vietnamese businesses to develop sustainably and enhance local value.

Ms. Hoang Thi Lien, President of VPSA, reaffirmed Vietnam’s dominant role in the global pepper and spice market. However, climate change, political conflicts, and trade wars necessitate robust risk management within the industry’s supply chain.

VIPO 2025 will run until March 5, featuring in-depth discussions on sustainable development and risk management. Additionally, it serves as a platform for businesses to showcase products, promote trade, and reinforce the economic value of Vietnamese spices on the global stage.

International Collaboration for Industry Development

During the event, the Vietnam Pepper and Spice Association and the China Spice Association signed a Memorandum of Understanding (MoU) to promote the sustainable development of Vietnam’s pepper industry.

Mr. Mike Liu, President of the China Spice Association, highlighted that 20 Chinese enterprises participated in the event to explore cooperation opportunities with Vietnamese businesses in both production and export. This collaboration aims to elevate Vietnamese pepper and spices to a global level.

Vision for 2030

By 2030, Vietnam aims to adjust its pepper cultivation area to 80,000 – 100,000 hectares, with a yield of 2.4 – 2.5 tons/ha and an output of approximately 200,000 – 230,000 tons.

• 40% of pepper cultivation areas to meet GAP or equivalent standards.
• 40-50% of cultivation areas to obtain planting area codes with traceability.
• 40-50% of replanted and improved varieties to be of high quality.
• Organic pepper cultivation areas to reach 5,000 hectares, making up 5% of total pepper cultivation.

The focus will be on developing pepper-growing regions according to organic and certified standards such as VietGAP and GlobalGAP in key production areas, including Dak Nong, Dak Lak, Binh Phuoc, Gia Lai, Dong Nai, Ba Ria – Vung Tau, Lam Dong, and Quang Tri.

With a well-defined strategy and international collaboration, Vietnam’s pepper and spice industry is poised for sustainable growth, securing its global leadership in the coming years.