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Creating export positions for industrial crop products

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1 month ago

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Vietnam had seven agricultural products or groups with export turnover of more than 3 billion USD in 2024. Of which, the industrial crop sector contributes three products: Coffee, 5.4 billion USD; cashew nuts, 4.38 billion USD; and rubber, 3.46 billion USD. In addition, pepper products officially returned to the billion-dollar club after many years of absence, reaching a turnover of 1.3 billion USD.

Currently, the increasing demand of many countries for these products is an opportunity for Vietnam to increase production and export, creating a new position for the industries in the world market.

The main export markets for Vietnam’s industrial crop products are currently the European Union (EU), the US, Japan, and the Republic of Korea. In addition, Vietnam is also expanding exports to Southeast Asia, the Middle East, and India.

Global “heat”

According to the Import-Export Department (Ministry of Industry and Trade), the global pepper supply is currently very scarce, and demand is expected to continue to increase, so Vietnam’s pepper export prices have increased in most major markets since the beginning of the year.

In 2024, Vietnam’s pepper export prices reached a record high with an average price of 5,280 USD per tonne. Of which, black pepper prices reached 5,269 USD per tonne, up 51.4%, and white pepper reached 6,503 USD per tonne, up 29.9% compared to 2023. In the first two months of 2025, pepper exports decreased by 9.4% in volume but increased by nearly 52% in value, reaching 28,000 tonnes at 188.7 million USD.

The main export markets for Vietnamese industrial crop products are currently the European Union (EU), the US, Japan, and the Republic of Korea. In addition, Vietnam is also expanding exports to Southeast Asia, the Middle East, and India.

Hoang Thi Lien, Chairwoman of the Vietnam Pepper and Spice Association, said that Vietnam currently maintains its position as the world’s largest pepper exporter, accounting for about 40% of global output, with key export markets such as the US, EU, India, the Middle East, and China.

In 2025, global pepper output is forecast to continue to decrease compared to 2024, marking the fourth consecutive year of decline since 2022. This will provide conditions to push pepper prices up, so farmers and export enterprises need to take advantage of the opportunity to focus on production, processing, and consumption.

Along with pepper, coffee prices have not shown any signs of cooling down. In February 2025, Robusta coffee prices in the domestic market continued to increase compared to the end of January 2025, ranging from 128,000-129,000 VND per kilogram.

According to the Ministry of Agriculture and Environment, in the first two months of 2025, Vietnam’s coffee exports reached 284,000 tons at 1.58 billion USD, down 28.4% in volume but up 26.2% in value compared to the same period in 2024. The average export price of coffee in the two months is estimated at nearly 5,575 USD per tonne, up 76.3% over the same period in 2024. Germany, Italy, and Japan are the three largest coffee consuming markets of Vietnam.

According to the forecast of the US Department of Agriculture (USDA), world coffee output in the 2024/2025 crop year will reach 174.9 million bags, an increase of 6.9 million bags over the same period last year. However, global consumption is expected to increase by 5.1 million bags, reaching 168.1 million bags, while ending inventory is expected to decrease by 1.5 million bags down to 20.9 million bags. This is also the main reason for the heat in demand and the export price of coffee that cannot be reduced in the near future.

Tea harvesting in Gia Nghia City, Dak Nong Povince. (Photo by NGUYEN DANG)
Tea harvesting in Gia Nghia City, Dak Nong Povince. (Photo by NGUYEN DANG)

In addition, rubber products are also forecast to continue to grow strongly in 2025 due to high demand in most countries, especially in the EU region. In recent years, the EU has always maintained its third position in Vietnam’s rubber export market.

In 2024, Vietnam will rank 11th among non-EU markets supplying rubber to the EU, with a volume of 87,164 tonnes, worth 158.65 million USD, up 28% in volume and up 60.7% in value compared to 2023. Vietnam’s rubber market share in total rubber imports to the EU from non-EU markets in 2024 will increase to 3.8%, from 3.2% in 2023.

Meeting requirements of sustainable production and export

According to Phung Duc Tien, Deputy Minister of Agriculture and Environment, the export of agricultural, forestry and fishery products reached 62.5 billion USD in 2024, while the export of industrial crops such as rubber, coffee, cashew, and pepper reached more than 14.5 billion USD, contributing a huge economic value to the whole industry. Currently, the potential for these products is still very large.

However, like many other export goods, the market is increasingly demanding on product quality, especially standards on green and sustainable production, reducing greenhouse gas emissions and protecting the environment. Therefore, Vietnamese enterprises need to pay attention to complying with regulations on origin, product quality, and environmental standards set by the EU.

In addition to meeting new market regulations to bring these products from dominating the market to dominating the market, and creating a new position, it is necessary to pay special attention to trade promotion and diversifying export markets instead of focusing only on a few traditional markets.

Regarding coffee, Nguyen Thi Hoang Thuy, Trade Counsellor of the Vietnam Trade Office in Sweden who is concurrently in charge of the Northern European market, said: “Nordic countries such as Norway, Denmark, and Sweden currently consume the most coffee in the world per capita.

“However, Vietnamese coffee exports to this regional market have not yet met expectations. The reason is that this market is mainly interested in organic coffee and coffee with sustainability certification, typically certifications such as Rainforest Alliance and Fairtrade certification (UTZ).

“Vietnamese businesses should invest in this segment to build brands, enhance the value of national coffee products; thereby having more opportunities to export to many other markets outside of Northern Europe.”

As for pepper products, in addition to the main markets such as the US, Germany, and India, businesses need to pay attention to expanding exports to the Middle East because this is a market with high demand for pepper due to the habit of using spices in cuisine and the development of the food industry.

Notably, under the conditions of the Vietnam-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement signed at the end of October 2024, this will be an important premise for Vietnam to promote the export of its strong agricultural products to the Middle East and Africa.

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Billionaire Trần Bá Dương’s VND 2,000 Billion, 200-Hectare Industrial Park in Thái Bình Could Begin Operations This Year

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3 weeks ago

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March 31, 2025

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The Thaco – Thái Bình Industrial Park, covering more than 194 hectares with an investment of over VND 2,100 billion, is expected to become operational within this year, according to the development plan.

Recently, provincial leaders of Thái Bình conducted an on-site inspection of land clearance efforts and infrastructure construction progress at the Thaco – Thái Bình Industrial Park located in Quỳnh Phụ District.

To date, Quỳnh Phụ District has completed compensation and land clearance for nearly 192 hectares of agricultural land, involving the land recovery of 1,067 households to hand over to the investor for project implementation.

Currently, the district is focusing on clearing the remaining land, involving 94 households in Lương Cầu Hamlet, An Cầu Commune. At the same time, it is coordinating with the electricity sector to relocate a 220kV high-voltage power line.

On the investor’s side, groundwork construction is underway, including roadbeds, internal roads, stormwater and wastewater drainage systems, and communication infrastructure within the industrial park.

The Thaco – Thái Bình Industrial Park is a specialized high-tech agricultural industrial park proposed by THACO Group (chaired by billionaire Trần Bá Dương) since 2017, originally planned to cover 250 hectares. By July 2017, the provincial authorities agreed to incorporate the project into Thái Bình’s industrial development master plan.

In August 2020, THACO officially broke ground on the industrial park’s infrastructure. A year later, in August 2021, the project’s investment certificate was revised, confirming a total investment of over VND 2,100 billion and a land area of more than 194 hectares. The project is being developed across An Thái, An Ninh, and An Cầu communes in Quỳnh Phụ District.

According to the roadmap, the investor is determined to complete and officially launch the project in 2025.

The Thaco – Thái Bình Industrial Park is designed as a dedicated high-tech agricultural zone, featuring various functional subdivisions including an administration center, agro-food processing zone, high-tech agricultural training center, experimental farms, agricultural materials production area, and a cargo transport port.

This project is considered one of the key developments in Thái Bình Province, playing a crucial role in the region’s socio-economic growth strategy.

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Carbon labels: a gateway to high-value global markets

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4 weeks ago

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March 27, 2025

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In an era where sustainability is not just a choice but a requirement, carbon labelling is emerging as a crucial factor for exporters.

Carbon labels: a gateway to high-value global markets
Vu Trung Kien, director Climate Change Resilience Centre

Countries like the US and the European Union are implementing stringent carbon regulations, such as the EU’s Carbon Border Adjustment Mechanism and increasing scrutiny on supply chain emissions.

Vietnamese businesses that fail to adopt carbon labelling risk losing access to lucrative markets. However, those that proactively integrate carbon footprint transparency into their products can gain a competitive advantage, enhance brand reputation, and secure long-term profitability.

Across the world, forward-thinking countries have embraced carbon labelling as a strategic tool for trade success. These efforts have not only helped businesses comply with regulations but have also opened doors to new investment and consumer markets.

Japan has implemented a government-backed carbon labelling programme that allows companies to display detailed carbon footprint information on their products. This has strengthened consumer trust and made Japanese goods more attractive in environmentally conscious markets such as the EU and North America.

The South Korean government incentivises businesses to adopt carbon labelling through tax benefits and green export support schemes. Companies that participate gain access to new trading partners, particularly in Europe, where sustainable supply chains are becoming the norm. Thailand, a key competitor to Vietnam, has integrated carbon labelling across industries such as food processing, textiles, and electronics. Thai exporters, particularly in agriculture, now benefit from preferential treatment in European supermarkets and trade agreements.

These case studies highlight an important lesson: carbon labelling is not just about compliance – it is a business strategy that enhances market access, builds consumer confidence, and future-proofs exports.

For businesses in Vietnam, waiting until carbon labelling becomes a legal requirement would be a mistake. Many international corporations have already set ambitious sustainability targets, requiring suppliers to provide verifiable carbon footprint data. Voluntary carbon labelling can position Vietnamese enterprises as reliable, future-ready partners.

It works by companies conducting a life cycle assessment to measure emissions from production to disposal. Products are labelled with a carbon footprint score, helping consumers and businesses make informed choices. Labels are often verified by third-party certifiers to ensure credibility and compliance with global standards.

The benefits include a boost for green supply chains. Companies like Nestlé and Unilever prioritise suppliers that provide carbon footprint transparency. Vietnamese food and beverage exporters can gain an edge by aligning with such demands.

Businesses with carbon-reduction strategies attract funding from international banks and investors that focus on increasing environmental, social, and governance (ESG) investment.

It also leads to improved consumer trust and higher sales. Studies indicate that climate-conscious consumers prefer labelled products. In markets like the EU, organic rice, seafood, and textiles from carbon-labelled brands command higher prices.

For Vietnamese companies looking to integrate carbon labelling into their strategy, a step-by-step approach can make the transition smooth and effective.

Pilot carbon labelling programmes in key sectors are critical, with a focus on industries where carbon labelling is already gaining momentum, such as textiles, seafood, agriculture, and furniture.

The process must start with one or two high-export products and conduct a carbon footprint analysis to understand emissions sources. Industry associations must also work with international partners to ensure the label aligns with EU and US standards.

Collaboration with certification bodies is also key, and partnering with recognised organisations such as the Carbon Trust (UK), TÜV Rheinland (Germany), or SGS (Switzerland) for certification is advised, as is engaging with Vietnamese regulatory bodies to advocate for government incentives similar to South Korea’s model.

Another vital part of the process is to leverage green financing and government incentives to access ESG-linked loans and grants that support supply chain improvements. Alongside this, there needs to be a move to propose carbon labelling incentive programmes through the Vietnam Chamber of Commerce and Industry or the Ministry of Industry and Trade.

The future of Vietnam’s export competitiveness is green. The world is moving towards sustainable trade, and carbon-labelling is no longer optional for businesses that want to thrive in international markets. By learning from successful global initiatives, Vietnamese companies can turn carbon transparency into an economic advantage rather than a compliance burden.

The time to act is now. Companies that lead in carbon labelling will not only future-proof their businesses but also shape Vietnam’s reputation as a responsible trade leader.

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Industrial parks in Binh Duong increase FDI attraction by 232%

Published

4 weeks ago

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March 27, 2025

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In the first quarter of 2025, an additional 588 million USD in foreign direct investment (FDI) poured into Binh Duong Province’s industrial parks, marking a 232% increase compared to the same period in 2024 and reaching 53.43% of the 2025 annual plan, as reported by the provincial Management Board of Industrial Parks on March 26.

Of the 588 million in FDI USD invested in industrial parks during the first quarter, there were 25 new investment projects with a total registered capital of more than 60.2 million USD and 26 projects with additional capital adjustments, contributing nearly 528 million USD in increased capital.

With this positive investment attraction in the first quarter, industrial parks in Binh Duong have so far attracted 3,252 active projects, including 2,561 FDI projects with total registered capital of 31.57 billion USD and 691 domestic investment projects with total registered capital of 93.664 trillion VND.

According to the Management Board of Industrial Parks in Binh Duong, 10 new projects have become operational in the first quarter. Currently, the province’s industrial parks have 2,706 active business and production projects, including 507 domestic projects and 2,199 FDI projects.

With effective operations, the estimated business and production targets for the first quarter of 2025 in the province’s industrial parks exceeded 11 billion USD, increasing by 7.72% compared to the same period last year and reaching 31.49% of the annual plan. Export turnover surpassed 6.34 billion USD, up 9.22% year on year, achieving 25.36% of the annual plan. Taxes and budget contributions reached nearly 175.4 million USD, increasing by 10.23% year on year and fulfilling 25% of the annual target.

Binh Duong currently has 29 industrial parks with a total planned area of 12,746 hectares. Of which, 28 industrial parks are already operational, covering a total of 12,046 hectares.

According to the Binh Duong Provincial Master Plan for 2021-2030, with a vision to 2050, which was approved by the prime minister, the province is planned to develop 48 to 50 industrial parks with a total planned area of 25,000 hectares.

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