In April 2025, Vietnam's pepper imports neared the record high of 2021 – a signal that left many in the import-export industry questioning: “Isn’t it paradoxical for Vietnam, the world’s leading pepper exporter, to be importing pepper?” Let’s explore this trend in depth with EximGPT and uncover the underlying logic and strategies that businesses can consider.

Vietnam Sees Surge in Pepper Imports: Key Figures

According to the Vietnam Pepper and Spice Association (VPSA), Vietnam imported 5,688 tons of pepper in April 2025, including 5,209 tons of black pepper and 479 tons of white pepper, with a total value of USD 36.7 million. Compared to the previous month, this marked a 15.1% increase in volume and a 27.2% rise in value.

Notably, this volume nearly matches the record high of 5,747 tons in May 2021, indicating a strong upward trend—despite Vietnam retaining its status as the world’s top pepper exporter, accounting for roughly 50% of global supply.

In the first four months of 2025, Vietnam imported a total of 15,374 tons of pepper, up 25.3% year-over-year, with an import value of USD 88.3 million, soaring 104.8%. Brazil led the list of suppliers with 8,155 tons (up 33.1%), followed by Indonesia with 4,288 tons (up 207.8%) and Cambodia with 1,906 tons (down 49.3%).

Why Is the World's Top Exporter Still Importing Pepper?

While this might appear contradictory, Mr. Hoang Phuoc Binh – former Standing Vice Chairman of the Chu Se Pepper Association – emphasized that this is normal in a market economy. Most imports serve the purpose of processing and blending for re-export.

For instance, although Brazilian pepper is generally of lower quality compared to Vietnamese pepper, it is significantly cheaper. By importing and blending it, businesses can optimize both quality and cost to meet the demands of various international market segments.

Furthermore, cross-country blending is a common practice in the global pepper industry. Even foreign companies import Vietnamese pepper to mix with Brazilian or Indonesian varieties before reaching end consumers.

In short, increased imports do not signify a weakness in Vietnam’s domestic pepper industry but rather represent a flexible commercial strategy to maximize profit and diversify export offerings.

Challenges for Vietnamese Pepper Branding

Despite leading the world in production and exports, Vietnamese pepper lacks brand recognition in international markets. Mr. Binh pointed out that in European supermarkets, it’s rare to find pepper products labeled “Made in Vietnam.” This reflects the country’s reliance on exporting raw or semi-processed materials, while the value-added gains go to foreign processors and distributors.

This raises a pressing issue regarding branding and deep processing, which Vietnam’s pepper industry must address in the long term. If the industry continues to focus solely on increasing output and exporting raw materials, its competitive edge will diminish—especially as other producers like Brazil capitalize on their low-cost advantage.

Thus, while importing for blending is a viable short-term tactic, the industry must ultimately aim for:

• Developing a national pepper brand
• Investing in deep processing technologies
• Building a closed-loop value chain from farm to table

Pepper Price Trends and Outlook for Late 2025

There’s a bright spot: export value is surging. Although export volume dropped 10.6% year-over-year in the first four months of 2025, total export turnover rose 45% to USD 510.6 million. This indicates higher export prices, partially offsetting the volume decline.

The main drivers are poor domestic harvests and farmers’ inclination to hold stock in anticipation of higher prices. With tight supply and rising foreign demand (especially from China), pepper prices are expected to climb in the medium and long term.

Specifically, according to Mr. Binh, pepper prices in China are currently VND 20,000–30,000/kg higher than in Vietnam, indicating that China—a crucial market—will likely step up imports, pushing Vietnamese pepper prices higher.

It’s also worth noting that pepper cultivation is not expanding this year due to land constraints and farmers shifting to more profitable crops. As a result, supply will remain limited throughout 2025, helping prices stay elevated.