According to the Vietnam Pepper and Spice Association (VPSA), the country exported over 9,000 tonnes of pepper, worth $59.9 million, in the first 15 days of October. By mid-October, total exports had reached 197,100 tonnes, equivalent to $1.33 billion, surpassing the previous all-time high of $1.31 billion achieved in 2024.

Although export volume has remained relatively stable, rising average export prices and a sharp increase in processed product output have driven total export value well beyond expectations.

Currently, domestic pepper prices range from $5.84 to $6 per kg, with the highest rates seen in major producing provinces such as Daklak, Lam Dong, and Gia Lai, while slightly lower prices have been reported in Dong Nai and Ho Chi Minh City. Limited domestic supply ahead of the new harvest season is expected to continue pushing prices upward.

The United States, Germany, and India remain Vietnam’s top three export markets, accounting for 24.7 per cent, 8.1 per cent, and 6.1 per cent of total export turnover, respectively. Exports to Germany rose by 43.4 per cent, to India by 64.3 per cent, and to the United Kingdom more than doubled compared to the same period last year.

In India alone, Vietnam exported over 10,000 tonnes of pepper worth $71 million, up 8 per cent in volume and 64.3 per cent in value. The average export price to this market reached $7,034 per tonne, marking a 50 per cent increase on-year.

However, behind these impressive figures lies growing concern over domestic supply. Despite being the world’s largest pepper exporter, Vietnam still imported over 36,000 tonnes of pepper worth $225.7 million in the first nine months of 2025, up 51.9 per cent in volume and 121.1 per cent in value on-year. Many exporters have been forced to import raw materials for processing as global prices remain $300-$600 per tonne higher than domestic levels.

According to the VPSA, Vietnam’s import volume will likely continue to rise until the next harvest begins in February 2026, as year-end demand typically increases by 10-15 per cent. While next season’s harvest is projected to grow by 5-10 per cent compared to last year’s 180,000 tonnes, short-term supply shortages are expected to persist, keeping pressure on both prices and exporters through early 2026.

Source: VIR