The EU market is where more consumers ask for products to have sustainability’s certificates, Vietnamese providers get tax incentives to increase compliance for plantations and suppliers.

Vietnam has more opportunities to export due to taxes for pepper and spices to fall to 0%, thanks to the agreement of EU-Vietnam Free Trade Agreement (EVFTA).

Goods imported into the EU often undergo extensive processing and have high added value.

In the first half of this year, Vietnam exported more than 4,300 tons of pepper to the European Union (EU), with the country's total pepper exports reaching 153,000 tons valued at USD 486 million.

In order to fully benefit from the EU-Vietnam Free Trade Agreement (EVFTA) and expand their presence in the EU market, experts suggest that Vietnamese pepper firms must embrace sustainable development practices and better align with the requirements of the EU market.

Additionally, the EU has been issuing warnings about pesticide residues and increasing inspections to ensure compliance with maximum residue levels (MRLs) for food, particularly Vietnamese spices.

The Vietnam Pepper Association reports that the EU has established more than 500 criteria on MRLs, which are expected to become increasingly stringent. In response, the association calls on all stakeholders in the supply chain, including farmers, businesses, associations, and government agencies, to work together and enhance the competitiveness of Vietnamese pepper in the global market.

Enterprises are advised to enhance their processing facilities and production processes, as well as expand their product ranges. It is also crucial for them to stay up-to-date with market information, such as tax tariffs, quarantine requirements, food safety regulations, technical barriers, rules of origin, and green growth criteria.

Mrs. Hoang Thi Lien, the Chairwoman of the Vietnam Pepper Association, emphasized the need for incorporating risk management throughout the entire value chain. Additionally, she stressed the importance of ensuring transparency and accountability through origin traceability and product labeling.