Demand for Vietnamese chili peppers has surged, with exports this year surpassing last year's figures by more than double. Notably, exports to Taiwan have increased nearly 16-fold, yet the growth in export revenue has not kept pace with the volume increase. Frequent rains have disrupted chili production, leading to soaring retail prices and increased burdens on consumers.
According to the Vietnam Pepper and Spice Association (VPSA), from January to September this year, Vietnam exported 4,553 tons of chili, generating $9.8 million in revenue. This represents a 115.2% increase in volume and a 22.1% increase in value compared to the same period last year. In September alone, exports reached 560 tons, a 25.3% increase from the previous month.
The largest export market is Laos, which accounted for 2,538 tons, or 55.7% of total exports, marking an increase of about 173% from the same period last year. The United States followed with 544 tons, reflecting a 14.5% increase. The Asian market has also seen significant growth, with exports to Taiwan reaching 313 tons, 15.7 times higher than the same period last year, while exports to Cambodia and China increased by over 180% and 256%, respectively. These five markets together represent approximately 86.7% of total chili exports.
The increase in exports is attributed to rising overseas consumer and processing demand, coupled with supply uncertainties in some producing countries. Notably, India, a major chili exporter, is expected to see its export volume drop to 683,681 tons for the 2025-2026 season, down from 715,506 tons the previous season. In key growing regions like Andhra Pradesh and Telangana, planting was delayed by about a month due to insufficient rainfall.
Vietnamese exporters have noted that some buyers in China and Taiwan have shifted their sourcing to Vietnamese chili due to supply disruptions in India. However, the extent to which this shift has contributed to overall export growth remains unclear.
A notable aspect of the export performance is the disparity between the growth rates of volume and revenue. While Vietnam's chili export volume increased by 115.2%, export revenue only rose by 22.1%. The average export price as of September was estimated at about $2,152 per ton, a decrease of 43.3% compared to the same period last year. However, this figure is an average calculated by dividing total export revenue by volume, and actual transaction prices may vary based on variety, quality, and market composition.
As exports expand, local chili prices in Vietnam remain high. In the southern region, farmers are selling chili at prices ranging from 20,000 to 41,000 dong (approximately $1 to $2), while small hot chili peppers for export are trading at 33,000 to 41,000 dong (about $1.70 to $2.10).
In traditional markets in Ho Chi Minh City, retail prices for fresh chili have reached 150,000 to 190,000 dong per kilogram. Some large supermarkets have seen prices rise to around 240,000 dong, with small hot chili peppers nearing 200,000 dong. Farmers attribute the price increases to difficulties in cultivation and harvesting caused by prolonged rainfall.
Local consumers have expressed dissatisfaction with the rising chili prices. One reader lamented, "Chili used to be a common seasoning that cost just a few thousand dong, but with the prices of other groceries rising, the burden on large families has significantly increased." Another noted, "I asked for an extra plate of chili at a pho restaurant and received a disapproving look from the owner, as if chili has become as precious as gold." Conversely, one reader mentioned, "I grow 20 chili plants in my garden, so I don’t need to buy them throughout the year."
There are also voices welcoming the increase in exports. One reader expressed understanding of the reasons behind the recent spike in chili prices and congratulated farmers on their expanded exports. However, concerns were raised about the difficulty of making a profit at current farm gate prices.
The Vietnamese chili industry faces the challenge of maintaining competitive prices and quality as export volumes rise rapidly. With production uncertainties due to frequent rains and declining average export prices, there is a pressing need for stable raw material supply and improvements in processing and storage technologies.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.