First quarter pepper exports to EU market surge by 92.9%
The EU-Vietnam Free Trade Agreement (EVFTA) is being effectively utilized by local enterprises amid the export turnover of peppers to the EU market expanding by 92.9% during the opening quarter of the year.
Statistics compiled by the General Department of Customs indicate that pepper exports during the first quarter of the year reached 53.8 thousand tonnes, worth US$ 250.8 million, a drop of 12.1% in volume but up 40.3% in value compared to the same period from last year.
Most notably, the first quarter of the year saw, the export speed of pepper to the European region increase the most with a rise of 92.9%, whilst strong growth was seen in the Americas, up 63.5%, Africa, up 10.3%, and Asia, up 6.4%.
Furthermore, the share of Vietnamese pepper exports to the EU increased from 20.21% in the first quarter of 2021 to 28.08% in the first quarter of this year.
According to the EVFTA, EU countries pledge to eliminate all tariffs placed on pepper products (HS code 0904) as soon as the deal comes into effect.
Experts note that the effective implementation of the EVFTA will serves as extra leverage for Vietnamese businesses to increase exports to the EU market, especially for processed products that previously had a tax rate of between 5% and 9%.
Moreover, the incentives from the agreement are being effectively utilised by local businesses, particularly as pepper export turnover to the EU has seen consistent growth over recent years. It is therefore anticipated that the bloc will continue to increase pepper imports from the Vietnamese market in the year ahead.
Moving forward, Vietnam is anticipated to take advantage of opportunities to develop the pepper processing industry when investors in the EU move their processing plants to the nation in order to take advantage of cheap raw materials and labour, thereby creating a driving force to promote pepper exports to the EU.
According to experts, the EU represents a potential but fastidious market. Therefore, local businesses operating in the pepper industry must establish production linkages in terms of raw material areas, build trade brands by improving product quality, and maintain sustainability based on product certifications.
