Chili prices in Quang Ngai have soared to a record 72,000 VND per kilogram—ten times higher than the same period last year—driven by surging demand from China. This surge signals a promising outlook for Vietnam’s agricultural exports.

In key growing areas such as Nghia Ha commune (Quang Ngai City) and Binh Duong commune (Binh Son district), farmers are busy harvesting to take full advantage of the high prices. Local residents note that this price level is unprecedented. While chili sold for around 7,000 VND/kg last year, prices have now reached up to 72,000 VND/kg.

Mr. Le Van Minh, an intercropping chili farmer, shared: "We’ve diversified our crops to reduce risk, but this year’s chili price spike has significantly improved our income." With a yield of about one ton per sao (roughly 360 m²), profits are estimated at up to 50 million VND per sao for a 4–5 month season.

However, due to the low prices last year, farmers reduced their chili cultivation area from 30 hectares to just 20–25 hectares. This, combined with unfavorable weather, has limited supply—pushing prices even higher.

According to local traders, most of the chili is purchased for export to China. Only chilies that meet strict standards are selected, carefully packaged in cold containers to retain freshness during shipping. This attention to quality boosts product value and ensures compliance with export requirements.

The Quang Ngai Department of Agriculture and Rural Development reports that the province currently has around 2,500 hectares of chili cultivation, mainly in Binh Son and Tu Nghia districts. However, with high dependency on the Chinese market, authorities are advising against large-scale expansion to avoid the risk of oversupply.

Vietnam’s Chili Export Landscape

According to the Vietnam Pepper and Spice Association (VPSA), as of November 2024, Vietnam had exported over 10,000 tons of chili, earning more than USD 24 million. China was the largest importer, accounting for nearly 80% of the market, followed by Laos with over 14%.

Xinhua News Agency reports that China’s domestic chili production exceeds 66 million tons annually—the largest in the world. However, high domestic production costs have led China to increase imports from lower-cost producers like Vietnam.

From EximGPT's Perspective

Based on data from VPSA, in the first 9 months of 2024, Vietnam exported 9,274 tons of chili, reaching USD 22.2 million in export turnover—a 5.3% increase in volume and 31.8% increase in value year-over-year. The main markets were China (33%) and Laos (43%). (Vietnam Export)

While China remains Vietnam’s top export destination, over-reliance on a single market carries significant risks. Therefore, diversifying export markets and improving product quality are essential for long-term sustainable growth.

EximGPT recommends that agricultural enterprises and cooperatives leverage digital and AI-powered tools to:

• Forecast market trends and pricing
• Effectively manage supply chains
• Identify and develop new export markets

The adoption of technology-driven solutions will help Vietnamese agricultural products—especially chili—increase in value and strengthen competitiveness in the global market.