Pepper Market on August 3, 2025

 

Domestic price increased by 1,500 - 3,000 VND last week, mixed export price

Last week,  domestic pepper prices  increased by VND1,500 to VND3,000 per kilogram, reaching VND139,000 to VND140,000 per kilogram. In contrast, export pepper prices decreased by USD300 per ton compared to last week. The downward trend was also recorded in the Indonesian market, while Brazil increased again.

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In the domestic market

At the end of last week,  pepper prices  in the domestic market fluctuated between 139,000 - 140,000 VND/kg, an increase of 1,500 - 3,000 VND/kg compared to the previous week.

Specifically,  pepper prices   in Dak Nong increased by a total of 2,000 VND/kg and are currently being purchased at the highest price of 140,000 VND/kg.

Next is Dak Lak at 139,500 VND/kg, an increase of 1,500 VND/kg compared to last week.

Meanwhile, Gia Lai recorded the strongest increase, up to 3,000 VND/kg, reaching 139,000 VND/kg.

In the Southeast region, pepper prices are currently at 139,000 VND/kg in Ba Ria - Vung Tau, Dong Nai and Binh Phuoc, an increase of 2,000 VND/kg over the past week.

Market (survey area)	Purchase price on August 3 (Unit: VND/kg)	Change compared to last week (Unit: VND/kg)
Dak Lak	139,500	+1,500
Gia Lai	139,000	+3,000
Dak Nong	140,000	+2,000
Ba Ria – Vung Tau	139,000	+2,000
Binh Phuoc	139,000	+2,000
Dong Nai	139,000	+2,000

Source: Hoang Hiep synthesis

In the world market

According to data from the International Pepper Community (IPC), Indonesian black pepper prices closed last week at $7,063 per tonne, down 1.02% ($73 per tonne) from a week earlier.

 Vietnam's black pepper  export  price also decreased by 300 USD/ton, ranging from 6,140 - 6,270 USD/ton for 500 g/l and 550 g/l black pepper.

In contrast, the price of Brazilian black pepper ASTA 570 increased by 100 USD/ton, to 6,000 USD/ton.

In particular, Malaysian ASTA black pepper remained stable at USD 8,900/ton, unchanged from last week.

Type name	World black pepper price list
	August 3 (Unit: USD/ton)	% change from last week
Lampung Black Pepper (Indonesia)	7,063	-1.02
Brazilian Black Pepper ASTA 570	6,000	+1.69
Kuching Black Pepper (Malaysia) ASTA	8,900	–
Vietnamese black pepper (500 g/l)	6.140	-4.66
Vietnamese black pepper (500 g/l)	6,270	-4.57

At the same time of survey, the price of Indonesian Muntok white pepper decreased by 102 USD/ton last week, down to 9,873 USD/ton.

Similarly, Vietnam's white pepper export price also decreased by 300 USD/ton, reaching 8,850 USD/ton.

Meanwhile, Malaysian ASTA white pepper remained stable at 11,750 USD/ton.

Type name	World white pepper price list
	August 3 (Unit: USD/ton)	% change from last week
Muntok Indonesian White Pepper	9,873	-1.02
ASTA Malaysian White Pepper	11,750	–
Vietnam white pepper	8,850	-3.28

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Speaking with  Ho Chi Minh City Law Newspaper , Mr. Le Viet Anh, General Secretary of the Vietnam Pepper and Spice Association (VPSA), said the pepper industry is facing difficulties when the VAT Law takes effect from July 1.

The main problems are related to the VAT refund mechanism and the impact of VAT regulations on exports and businesses in the industry.

VPSA representative said that through feedback from businesses in the association, it is seen that applying 5% VAT on agricultural products in general, including pepper and spices, is not appropriate.

According to Mr. Viet Anh, the current production output of the Vietnamese pepper industry is estimated at about 200 thousand tons per year. Of which, 95% is exported and only 5% is consumed domestically. Of this 5%, only about 2.5% is deeply processed and consumed domestically. Therefore, the state only collects VAT from this part of the product. Most of the remaining output will be exported so it is not subject to VAT, so exporting enterprises will be refunded VAT.

Mr. Viet Anh said that the problem arising from the current tax mechanism is that although VAT on 5% of domestically consumed spices is fully collected, the 95% exported portion, equivalent to 2,135 billion VND in VAT, will be refunded by the state.

However, the tax refund mechanism has recently revealed many loopholes that facilitate tax refund fraud, affecting legitimate export businesses. These incidents have caused damage to businesses and reduced transparency in tax collection.

"Therefore, the export business community is very worried that this risk may continue to recur when implementing the tax refund mechanism as prescribed in the new VAT Law," said Mr. Viet Anh.

In the face of the above situation, VPSA representatives proposed that the government adjust the VAT mechanism towards applying 0% VAT on input materials used for export. Eliminate the export tax refund mechanism for pepper and spices, because the tax refund is not commensurate with social resources and greatly affects the working capital flow of enterprises.

While waiting for the Ministry of Finance to review and report to the superior agency for consideration, permission to postpone the implementation of the VAT Law after July 1, 2025.

According to VietnamBiz.vn