Pepper and Spices

General information

With around 55% of global production and 60% of global market share, pepper is Vietnam's current agricultural commodity that can lead the international market. In 2017, pepper cultivation area will reach 152 thousand ha, increasing 22.7 thousand ha in comparison with 2016; In particular, the Central Highlands (94,356 ha) and the South East (49,493 ha) are the two largest pepper areas in the country. Pepper output in 2017 reached 241.5 thousand tons, up 25.1 thousand tons. Exporting pepper in 2017 reached about 230 thousand tons, estimated value reached $ 1.11 billion decreased 21% compared with 2016.

Along with the development, the pepper industry still has some shortcomings: (i) The majority of pepper varieties are still floating, therefore it is hard to control the quality; (ii) explosive growth of pepper area, causing unsustainable development; (iii) small, fragmented production, lack of linkage; (iv) overuse of inorganic fertilizers and pesticides is still occurring, resulting in a severe decline in soil fertility, low pH, beneficial microorganisms being eliminated, thus disease outbreaks occur; (v) manual harvesting, post-harvest preservation is weak; (vi) Poor quality management, no brand; (vii) Semi-processed pepper is currently accounting for more than 80% of total pepper exports. Therefore, export value as well as competitive advantage of Vietnamese pepper is not high. Vietnam's pepper exports are also facing a lot of difficulties as the pressure from technical barriers of importing countries is increasing, such as the low chemical residue. Therefore, in order to meet the technical requirements of major import markets, Vietnam will have to pay more attention to the quality of its pepper products.

Organization and objectives

The PPP TF on Spices and Pepper was established in 2015 and is now co-chaired by the Plant Protection Department, IDH and the Vietnam Pepper Association (VPA). In addition, there is the participation of non-governmental organizations, private companies in the country and abroad.

The goal of the group is to connect the resources of the partners in the Vietnamese pepper / spice supply chain to address the sustainability issues of the industry. Specifically, the work of the PPP TF aims to strengthen the cooperative relationship between the State and business sector, promoting strong and sustainable development of Vietnamese pepper industry through the production of safe pepper. To meet the requirements of export, create better value and brand name for Vietnam pepper, to increase competitiveness and international integration of Viet Nam pepper industry.

Key outcomes

Although newly established in recent years, the activities of the PPP TF on Spices and Pepper have shown good results. Specifically:

- Develop the first five components of "Guidelines for sustainable pepper production".

- Training of more than 120,000 farmers on sustainable pepper production.

- Coordinate between the Plant Protection Department, the Association and the enterprises to develop sets of guidelines for sustainable production of pepper so as to meet the requirements of the world market.

- Assist and coordinate with the PPP TF on Agro-chemicals monitor the warning to pepper by exporting countries and import organizations. Promote establishment of the Viet Nam Coordination Pepper Board (VCPB) led by IDH and PPD.


MARD–Plant Protection Department (Co-Leader)

VietNam Pepper Association (VPA) (Co-Leader)

IDH, the Sustainable Trade Initiative (Co-Leader)

AgriMedia JSC

Chu Se Pepper Association

Community Development Center (CDC)

German Agency for International Cooperation (GIZ)

Haprosimex JSC

Harris Freeman Co., Ltd.

Intimex Group JSC

Lam San Agricultural Cooperative

McCormick & Company

Nedspice Processing Viet Nam Ltd.


Viet Nam Nutrition Food JSC (NutiFood)

Olam Viet Nam Co.,Ltd.

Pearl Trading Services & Import Export JSC

Phuc Sinh Corporation

Que Lam Group SGS Viet Nam Ltd.

Simexco DakLak Ltd.

Syngenta Viet Nam Ltd.

The Viet Nam Superintendence and Inspection of Coffee and Products for Export and Import (CafeControl)

United Spice Company (UniSpice)

VietNam Commodity Control & Certification (VCC&C)

Western Highlands Agro-Forestry Scientific and Technical Institute (WASI)

Yara Viet Nam Ltd.