Tổng quan ngành xuất khẩu hồ tiêu việt nam trong bối cảnh evfta và kiến nghị cho ngành xuất khẩu hồ tiêu việt nam

Tóm tắt Kể từ khi chính thức có hiệu lực vào ngày 182020, hiệp định Thương mại Tự do Việt Nam – Liên minh Châu Âu (EVFTA) đã giúp thúc đẩy thương mại giữa các nước Châu Âu và Việt Nam thông qua các ưu đãi thuế quan đối với mặt hàng nông sản. Hiệp định không chỉ là tín hiệu đáng mừng cho ngành nông sản nói chung mà ngành hồ tiêu cả nước nói riêng. Bài nghiên cứu phân tích thực trạng ngành xuất khẩu hồ tiêu Việt Nam và những thách thức mà ngành phải đối mặt. Từ đó, nhóm tác giả đề xuất các kiến nghị cho ngành hồ tiêu để giảm thiểu những khó khăn và tận dụng tối đa những lợi thế mà EVFTA mang lại. Điều này đòi hỏi những nỗ lực phối hợp chặt chẽ của chính phủ với doanh nghiệp và hợp tác xã đối với ngành xuất khẩu hồ tiêu Việt Nam để sẵn sàng đáp ứng những nhu cầu từ thị trường Châu Âu. Từ khóa: xuất khẩu hồ tiêu, EVFTA, Châu Âu, hiệp định thương mại tự do

TỔNG QUAN NGÀNH XUẤT KHẨU HỒ TIÊU VIỆT NAM TRONG BỐI

CẢNH EVFTA VÀ KIẾN NGHỊ CHO NGÀNH XUẤT KHẨU HỒ TIÊU VIỆT

NAM

Vũ Huyền Phương

Giảng viên Viện Kinh tế và Kinh doanh quốc tế

Trường Đại học Ngoại thương, Hà Nội, Việt Nam

Tóm tắt

Kể từ khi chính thức có hiệu lực vào ngày 1/8/2020, hiệp định Thương mại Tự do Việt Nam –Liên minh Châu Âu (EVFTA) đã giúp thúc đẩy thương mại giữa các nước Châu Âu và Việt Namthông qua các ưu đãi thuế quan đối với mặt hàng nông sản Hiệp định không chỉ là tín hiệu đángmừng cho ngành nông sản nói chung mà ngành hồ tiêu cả nước nói riêng Bài nghiên cứu phântích thực trạng ngành xuất khẩu hồ tiêu Việt Nam và những thách thức mà ngành phải đối mặt

Từ đó, nhóm tác giả đề xuất các kiến nghị cho ngành hồ tiêu để giảm thiểu những khó khăn vàtận dụng tối đa những lợi thế mà EVFTA mang lại Điều này đòi hỏi những nỗ lực phối hợp chặtchẽ của chính phủ với doanh nghiệp và hợp tác xã đối với ngành xuất khẩu hồ tiêu Việt Nam đểsẵn sàng đáp ứng những nhu cầu từ thị trường Châu Âu

Từ khóa: xuất khẩu hồ tiêu, EVFTA, Châu Âu, hiệp định thương mại tự do

Overview of Vietnam’s pepper export in the context of EVFTA and

recommendations for Vietnam's pepper export industry

Abstract

Since its official implementation on August 1, 2020, the Vietnam EU Free Trade Agreement(EVFTA) has played a vital role in promoting trade between European countries and Vietnam,particularly in the agricultural sector In fact, this agreement has brought significant benefits tothe national pepper sector Considering this, a study was conducted to scrutinize the existingcircumstances and challenges confronting the Vietnamese pepper export industry Based on thefindings, the author team has provided recommendations that can aid the industry in minimizingdifficulties and maximizing the benefits brought about by EVFTA For this, it is essential forclose cooperation between the government, enterprises, and cooperatives in the Vietnamesepepper export industry to meet the demands of the European market

Keywords: pepper export, EVFTA, Europe, free trade agreement

Introduction

EVFTA is a historic trade deal that was signed between the European Union andVietnam in June 2019 The agreement aims to enhance trade and investment between thetwo regions, eliminate tariffs, and create more jobs, particularly in agriculture Withregards to pepper export, EVFTA's agriculture section provides significant opportunitiesfor Vietnam However, to fully benefit from this agreement, Vietnam's pepper industryneeds to improve the quality and safety standards to meet the EU's stringentrequirements Additionally, the country should invest more in research and developmentactivities to enhance the production capacity and improve the value chain of their pepperindustry

Literature review

The European Union-Vietnam Free Trade Agreement (EVFTA) is an importanttrade agreement between the EU and Vietnam It covers a wide range of sectors,including agriculture, and aims to promote trade liberalization, investment, and economicgrowth Vietnam's pepper export has been an important contributor to its economy, andthe EVFTA provides an opportunity for the industry to expand its market access to the

EU The EU will eliminate tariffs on 99% of Vietnamese exports immediately and

gradually reduce them for the rest (EU-Vietnam agreement)

Hiezle Bual (Dec 2022) concluded that the EU and US are the largest importers of

black pepper in the world Vietnam is expected to export 220,000 metric tons of pepper,accounting for 55% of the world's pepper output The elimination of tariffs on pepperexports to the EU will benefit Vietnam's pepper industry, making it more competitive inthe EU market and increasing its export and investment opportunities

Nhan Dan Daily (March, 2019) reported that the agreement provides for the

protection of geographical indications (GI) for agricultural products, including pepper.The protection of GIs will allow Vietnam to market its pepper products in the EU with aguaranteed quality label, protecting against cheap imitations and promoting Vietnamesepepper products in the EU market

Nguyen & Trinh (May, 2020) concluded that the EFTA has positive impacts on

the export of agricultural products to the EU by helping the total value rise by over USD37.532 million

However, the implementation of the agreement may also have some challenges forVietnam's pepper industry The requirements for food safety and sanitation standards inthe EU may be higher than those currently implemented in Vietnam To meet the EU'sstandards, the Vietnamese government and pepper producers need to invest in improving

food safety and quality control measures Ngo & Nguyen (August, 2022) stated that

Small and medium-sized businesses in Vietnam should be the primary focus of industrydevelopment initiatives More money needs to be spent by the Vietnamese government

on raising production standards and procedures as well as developing commodityclassification requirements for some important agricultural crops

Hiezle Bual (Dec 2022) concluded that the EU and US are the largest importers of

black pepper in the world Vietnam is expected to export 220,000 metric tons of pepper,accounting for 55% of the world's pepper output The elimination of tariffs on pepperexports to the EU will benefit Vietnam's pepper industry, making it more competitive inthe EU market and increasing its export and investment opportunities

Nguyen & Trinh (2020) advised domestic companies that specialize in exporting

agricultural products to consistently raise the quality of their offerings so that Vietnameseproducts will eventually satisfy the Global GAP standard and be more competitive.Buying their value chains is the greatest approach for exporters to manage productquality Additionally, as dried, prepared fruits and vegetables are the most promisingitems when EFTA goes into operation, processors with money and resource potentialshould modernize their processing techniques

In short, the implementation of the EVFTA's agriculture section provides anopportunity for Vietnam's pepper industry to expand its market access to the EU.However, this opportunity also comes with challenges in meeting higher EU food safetyand sanitation standards Vietnam needs to invest in improving quality control measures

to meet these standards and take advantage of the opportunities offered by the agreement

1 Theoretical framework

1.1 Introduction to the EVFTA

The European Union-Vietnam Free Trade Agreement was signed in June 2019 andofficially came into effect in August 2020 It aims to promote trade and investmentbetween the EU and Vietnam by eliminating tariffs, establishing a predictable andtransparent legal framework, and promoting sustainable development It eliminates over99% of tariffs on goods traded between Vietnam and the EU, making it the mostcomprehensive free trade agreement between the EU and a developing country

The main content of the European Union-Vietnam Free Trade Agreement(EVFTA) includes the following:

Tariff elimination: The agreement aims to eliminate tariffs on almost all goods

between Vietnam and the EU over a period of time, with some exceptions such asagricultural products

Non-tariff barriers: The EVFTA includes measures to reduce and eliminate

non-tariff barriers, such as technical regulations and standards, to facilitate trade between thetwo sides

Services and investment: The agreement also covers services and investment,

including market access and treatment, investment protection, and dispute settlementmechanisms

Intellectual property rights: The EVFTA includes provisions to protect intellectual

property rights, including trademarks, copyrights, and patents

Government procurement: The agreement also includes provisions on government

procurement, which will allow EU companies to participate in public tenders in Vietnam

on an equal footing with local firms

Sustainable development: The EVFTA includes provisions on sustainable

development, including commitments to promote sustainable and responsible businesspractices, protect the environment, and respect labor rights

Dispute settlement: The agreement establishes a dispute settlement mechanism to

resolve any disagreements or disputes arising from the interpretation or implementation

of the agreement

Overall, the EVFTA aims to strengthen trade and investment ties betweenVietnam and the EU, and to create new opportunities for businesses on both sides Theagriculture section of the EVFTA is an essential aspect of the agreement, as it covers awide range of agricultural products, including pepper Pepper is among the most crucialagricultural export products in Vietnam, and the country is one of the world's leadingproducers and

exporters of black and white pepper EVFTA provides substantial opportunities forVietnam's exports of agricultural products to the EU market Tariffs on key Vietnameseagricultural exports, including pepper, seafood, coffee, and tea, are expected to decreasesignificantly over time.

1.2 Vietnam's pepper export industry

1.2.1 Introduction of pepper products in Vietnam

In the seventeenth century, Vietnamese pepper emerged as a significant crop inVietnam In recent years, there has been a growing demand for high-quality pepper,particularly from the European Union (EU) market Consequently, Vietnam's pepperexports' value increased from 752 million USD in 2018 to 925 million USD in 2021(Trade map), eventually becoming a dominant force in both the country's agriculture andthe global market

Vietnamese pepper has flourished due to several favorable conditions, includingabundant natural resources such as fertile basalt soil, a subtropical climate with highhumidity and rainfall, diligent and eager-to-learn Vietnamese farmers, governmentsupport for farming investments and technology and the effective operation of theVietnam Pepper Association, a non-profit organization dedicated to the development ofthe pepper industry

However, there are challenges that Vietnam's pepper industry faces Weatherfluctuations, pests, and diseases pose risks to crop yields and quality Limited marketaccess, low quality and safety standards, and weak supply chain management are alsosignificant obstacles Vietnam's pepper exports face difficulties due to competition frompepper produced in Brazil and India, as well as the impact of the COVID-19 pandemic onexport volumes to American and European markets

1.2.2 The significance of pepper export for Vietnam's economy

Vietnam's pepper industry remains a crucial component of the country's economy,serving as a prominent export commodity and ranking among the top ten agriculturalexports The Central Highlands region, where pepper is a major cash crop, particularlybenefits from this industry and relies on it as a significant income source

The export of pepper also contributes to Vietnam's trade surplus, which has beenconsistently growing in recent years In 2020, Vietnam recorded a trade surplus of 19.1billion USD, with total exports turnover of goods reaching 281.5 billion USD andimports turnover of goods amounting to 262.4 billion USD Pepper played a vital role inthis surplus as one of the top ten agricultural exports (General Statistics Office of VietNam) Its export value in 2021 stood at 925 million USD, further contributing to thecountry's overall trade surplus

Moreover, the pepper industry holds significant importance within Vietnam'sagricultural sector as a whole Vietnam ranks as the world's sixth-largest exporter ofagricultural products, with the sector contributing approximately 14% to the country'sGDP The Vietnamese government has actively promoted the development of high-valueagricultural goods, including pepper, to enhance the sector's contribution to the nationaleconomy.

1.2.3 Vietnam's pepper export performance to other countries

Vietnam has emerged as one of the largest global producers and exporters ofpepper, playing a significant role in the international pepper trade The country's pepperexports have been steadily increasing, and it has been diversifying its market presencebeyond its traditional trading partners

In 2020, the European Union (EU) remained a crucial market for Vietnamesepepper exports, accounting for approximately 17% of the total export value Additionally,the United States, India, and China are major markets for Vietnamese pepper Vietnam'spepper exports to the US reached 143 million USD in 2020, making it the largest non-EUmarket for Vietnamese pepper (Figure 1)

Figure 1 List of five markets importing the most export products of Vietnam - Source:

Trade map

Vietnam has also been expanding its pepper exports to other Southeast Asiancountries, including Philippines, Malaysia, and Thailand The export figures to Thailand

and Philippines in 2020 were 16 million USD and 15 million USD (Trade map),respectively, indicating a notable increase compared to previous years The country'sefforts to develop new markets for Vietnamese pepper have resulted in positive exportperformance.

Furthermore, Vietnam has made significant improvements in the quality and safety

of its pepper through the implementation of measures to enhance production andprocessing standards This has led to a growing demand for Vietnamese pepper in globalmarkets, particularly in the EU, where the European Union-Vietnam Free TradeAgreement (EVFTA) has facilitated easier access for Vietnamese pepper

1.2.4 The demand of consuming pepper of the EU’s population

Black pepper holds a significant position as a highly consumed spice in Europe Itplays a crucial role in various dishes and has maintained its popularity over time due toits unique qualities, making it irreplaceable Therefore, pepper is named as "the king ofspices" in European cuisine

Europe heavily relies on imports to meet its demand for black pepper since it doesnot produce this spice domestically As the largest importers globally, both Europe andthe USA together account for approximately one third of the world's black pepperimports European imports of black pepper have witnessed a stable increase, with anannual growth rate of 5% since 2016, reaching 76.7 thousand tons in 2020 (CBI Ministry

of Foreign Affairs) Within Europe, around half of the internal trade consists of exports of black pepper originating from producing countries, while the other halfincludes processed (ground) pepper

re-The consumption of black pepper in Europe is projected to continue growingsteadily, aligned with the population growth of the region Over the next two years,imports are expected to rise with an annual growth rate of 1-2% European markets offer

a price advantage for exporters of high-quality and sustainably produced black peppercompared to Asian markets For instance, Vietnam's average export unit value toGermany, the largest European market, was 10% higher than that to the USA and 20%higher than to China in 2019 and 2020 (CBI Ministry of Foreign Affairs)

Figure 2 European imports of pepper by origin (in tons) - Source: CBI Ministry of

Foreign Affairs

2 Analysis of Vietnam’s pepper export industry and EVFTA agreement

2.1 Vietnam's pepper exports before the signing of the EVFTA agreement

2.1.1 The status of Vietnam’s pepper produced before the EVFTA

In terms of pepper production and export, Vietnam has consistently ranked first inthe globe Implement crop restructuring in the direction of agricultural sectorrestructuring, whereby the goal for pepper in the period 2016-2020 is to stabilize an area

of about 98 thousand hectares, primarily concentrated in advantageous regions(Southeast, Central Highlands), and intensive farming to improve productivity andproduct quality In 2010, there were just 51.3 thousand hectares of pepper farming(General Statistics Office, 2021)

However, due to the continual growth in pepper prices from 2010 to 2016,individuals concentrated on massively increasing the planting area, leading the pepperarea in the entire nation to increase fast, and certain areas developed "hottest." This leads

to over planning The pepper acreage reached 101.6 thousand hectares in 2015, nearlydouble that in 2010 The area of pepper increased sharply in 2017, 2018, the highestreached over 150 thousand hectares in 2017, then due to price decrease and instability, by

2020 it will be 131.8 thousand hectares, an increase of 30.2 thousand hectares over theprevious year and an increase of 80.5 thousand hectares over 2010 (General StatisticsOffice, 2021)

During the pepper price boom, the planted area expanded far too rapidly, even inplaces unsuitable for pepper cultivation Many people cultivate pepper; however, it canonly be harvested after 3-4 years When pepper is harvested, it is also the period whenpepper prices fall, so efficiency is low, and farmers abandon the garden without caringfor it, diminishing production and quality of pepper goods and harming the Vietnamesepepper brand in the market

2.1.2 The status of Vietnam’s pepper export before the EVFTA

Vietnam accounts for more than 40% of global pepper output and approximately60% of global pepper export market share The remaining 5% of Vietnam's peppervolume is consumed in the local market Pepper prices peaked in 2015 and 2016, with anaverage of 8000-9500 USD gained per ton of exporting pepper Since 2016, pepper priceshave steadily declined, leaving producers with little or no care and no pest management,resulting in poor production, quality, and efficiency (Figure 3)

Figure 3: List of importing markets from European Union (EU 27) for a product

export by Viet Nam – Trade map

By 2019-2020, each ton of pepper for export will only earn 2,300-2,500 USD onaverage At this pricing, pepper producers confront several challenges, including lossesand the inability to repay loans acquired to engage in pepper planting Domestic andexport pepper prices grew steadily in the early months of 2021 Pepper is slowlyimproving after a lengthy period of decline This is encouraging news for the peppersector as a whole, and for pepper producers in particular

Despite ranking first in the world in pepper production, Vietnam faces severaluncertainties and is not sustainable Vietnam sold pepper to 105 countries and territories,with the largest export turnover in 2016 of 1,429.2 million USD, then steadily declining

in 2017, 2018, 2019, and 2020 to just 660,6 million USD, while the export volume hit ahigh of 285.3 thousand tons

2.2 Vietnam's pepper exports after the signing of the EVFTA agreement

After the EVFTA came into effect, pepper export volume to international marketsdecreased, but export value increased And Vietnam still remained one of the biggestpepper exporters in the world

According to data from Vietnam Customs, the export volume in 2020 reached285,292 tons, but the value was only 660,569 million USD In 2021, the export volumedecreased to 260,000 tons - decreased for the first time in 6 years since 2015, but theturnover increased significantly Pepper output decreased by 9% but export valueincreased by 42%, reaching a total value of about 950 million USD After a four-yeardecline in value, Vietnam's pepper export price increased substantially again in 2021,rising 55.2% (equivalent to 1,278 USD per ton) over 2020 to an average of 3,593 USDper ton (Table 1)

Viet Nam’s pepper export (2019 - 2022)

Table 1 Viet Nam’s pepper export (2019 - 2022) - Source: Vietnam Customs

The worldwide pepper market has been challenging since the third phase of 2022due to low demand and falling prices The downtrend lasted until October 2022 due tohigh inflation and slow consumption demand despite abundant supply According toVietnam Customs, Vietnam's pepper exports in the third quarter of 2022 were 51.57thousand tons, valued at 213 million USD, a 27% decrease in volume and a 31.8%decrease in value By the end of 2022, the export volume continued to decrease by 12%

to 230,000 tons, but the export turnover increased by 4%, reaching 970 million USDcompared to 2021 (Table 1)

Besides the rising value factor, Vietnam's pepper export structure has improved in

a good direction, gradually shifting to exporting highly processed pepper instead of raw