Vietnam sometimes spelled Viet Nam, officially the Socialist Republic of Vietnam
is the easternmost country on the Indochina Peninsula in Southeast Asia.
It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest,
and the South China Sea - referred to in Vietnam as the East Sea - to the east. With an estimated 90.5 million
inhabitants as of 2011, Vietnam is the world's 13th-most-populous country, and the eighth-most-populous Asian country.
The Vietnamese became independent from Imperial China in 938 AD, following the Battle of Bach Dang River.
Successive Vietnamese royal dynasties flourished as the nation expanded geographically and politically into
Southeast Asia, until the Indochina Peninsula was colonized by the French in the mid-19th century. Efforts to
resist the French eventually led to their expulsion from the country in the mid-20th century, leaving Vietnam
divided politically into two countries. Fighting between the two sides continued, with heavy foreign intervention,
during the Vietnam War, which ended with a North Vietnamese victory in 1975.
Emerging from this prolonged military engagement, the war-ravaged Communist nation was politically isolated.
In 1986, the government instituted economic and political reforms and began a path towards international reintegration.
By 2000, it had established diplomatic relations with most nations. Its economic growth has been among the highest in
the world since 2000, and according to Citigroup, such high growth is set to continue. Vietnam has the highest
Global Growth Generators Index among 11 major economies, and its successful economic reforms resulted in it
joining the World Trade Organization in 2007. However, the country still suffers from relatively high levels of
income inequality, disparities in healthcare provision, and poor gender equality.
Pepper in vietnam
Pepper plant, scientifically known as Piper nigrum under the Piperaceae family originated from India. This variety was planted in Viet Nam in the 17th century by the French and was grown in Phu Quoc, Hon Chong and Ha Tien (KienGiang) by the end of the 19th century.
Until early 20th century, this plant spread to the land of basalt soil in the Southeastern and the Central high-lands of Viet Nam, which is now known as â€śChu Se pepper. Pepper cultivation in Vietnam started popular since 1970â€™s, with about 400ha of cultivation area yielded about 500 metric tons.
Since 2001, Viet Nam has become the worldâ€™s largest pepper exporter with a total export volume of 50,506 tons. In 2014, despite a decrease of the worldâ€™s pepper growth rate because of the poor crop in some countries, Viet Nam still maintains its stability with a total pepper growing area of 73,500ha, a total pepper productivity of nearly 140,000 tones and a total export volume of 156,396 metric tons.
In 2016 Vietnam contributed 41% and 59% to the word production and export of pepper.
|Export Earnings (USD'000)
Area and production
Currently, pepper plantin Viet Nam grows mainly in six provinces, including BinhPhuoc, DakNong, Dak Lak, Ba Ria-Vung Tau, Dong Naiand Gia Lai. Among them, the provinces in the Central Highlands and the Southeastern region rank first in terms of area and productivity. Other pepper growing areas are also available in Phu Quoc and KienGiang, which have created their trademark in the market.
Given the situation of good harvest in the last few years, area expansion for pepper has occurred in Viet Nam and in 2017 total area of pepper cultivation was reported 105,000 ha, increased from 97,500 ha in 2015 and 85,500 ha in 2014
Nowadays Viet Nam is known as the largest pepper producing and exporting countries. Vietnam also recorded the highest in productivity, with an average of more than 2 Mt of pepper per hectare annually. Even in certain areas of Viet Nam productivity achieves 10 Mt per hectare.
During 2016, Viet Nam is estimated to have produced 175,000 Mt, a fantastic figure recorded by Vietnam as against its reported production of around 122,000 Mt in 2015 and recording a 39% higher than the average of production during the last ten years.
Export of pepper
Viet Namâ€™s pepper export has drastically increased, reaching an annual growth rate of 10% in the last ten years. Even in 2016 the increase reached 34%. Viet Nam export in 2016 was 179,233 Mt worth $ 1.43 billion, the highest achieved so far. Out of total export from Viet Nam, around 10-15% was white pepper. The total export represents an increase of 34% in volume compared to the 133,650 Mt exported in 2015 and 41% higher than the average export in the last ten years. In term of value export earnings from pepper reached $1.43 billion in 2016, an increase of 12% from US$ 1.3 billion received in 2015. In terms of export share, Vietnamâ€™s export in 2016 was nearly 60% of the total export amongst the producing countries at the level of 316,200 Mt.
Viet Namâ€™s pepper has so far been exported to more than 100 countries and territories in Asia, Europe, America and Africa. Viet Namâ€™s high-quality pepper products exported to the USA and European countries has increased in recent years. United States of America was the main market importing around 20,000 Mt of Viet Nam pepper annually, followed by United Arab Emirates, Singapore, India, Netherlands and Germany. Other consuming countries such as Korea, Egypt, United Kingdom, Spain and Russia also import significant quantity of pepper from Viet Nam
Export of pepper from Viet Nam by top ten country of destination
Beside export Viet Nam also imports pepper for re-export. In the last ten years, import of Viet Nam was on average at the level of 12,000 Mt mainly from Indonesia. In 2016 Vietnam imported 22,300 Mt of pepper. Out of which a volume of 15,500 Mt was imported from Indonesia.
Yearly import of pepper by Viet Nam during 2006 - 2015
Viet Nam pepper prices published in some report are local price prevailed in Ho Chi Minh City and FOB price based on liter-weight. Local price refer to the price for processed pepper at producer level traded in local market. FOB price in this report is refer to the price for grade 550g/l; while for white pepper the FOB price refer to price of pepper grade 630g/l.
As shown in the following table, highest price of Vietnamese pepper has achieved in July 2015 at the level of VND 202,200 and VND 269,100 per Kg for black and whiter pepper respectively traded in local market. The highest FOB price achieved was at the level of US$ 9,600 and US$ 13,350 per Mt for black 550g/l and white 630g/l respectively achieved in December 2015
During the last ten years, average price of Vietnamese pepper was VND 105,834 and VND 150,094 per Kg respectively for black and white pepper traded in local market; while average FOB price was at the level of US$ 5,617 and US$ 7,913 per Mt for black 550g/l and white 630g/l respectively.
Average pepper price in Vietnam
Information on the projection of pepper production for the future 3-5 years is not available. However, observing the significant increased area of pepper in the last few years, it is predicted that production of pepper will increase further, subject weather situation is favorable. If the situation becomes reality, abandoned pepper supply will take place and continuous price decrease has to be anticipated.
Factors affecting pepper industry
â€˘ Pepper price
â€˘ Support of the government
â€˘ Economics development; global, regional and internal country
â€˘ Weather changes
â€˘ Pest and diseases
â€˘ Cost of production
â€˘ Area expansion
Local Vietnam products eye int'l supermarkets
The Vietnamese Ministry of Industry and Trade has set an ambitious plan to help locally made products penetrate overseas supermarkets. The move was conducted as part of the ministry's export strategy for 2012.