Pepper Market on July 31, 2025:

 Domestic and world prices increase simultaneously

Pepper prices today increased by VND1,000/kg in some localities, fluctuating between VND139,000 - 140,000/kg. In the world market, pepper prices from Indonesia and Brazil also recovered.

In the world market

At the end of the most recent trading session, according to the International Pepper Community (IPC), the price of Indonesian black pepper was listed at 7,109 USD/ton, up 0.07% (equivalent to 5 USD/ton) compared to the previous trading session.

Similarly, the price of Brazilian pepper ASTA 570 also increased by 100 USD/ton, to 5,900 USD/ton.

Meanwhile, the price of Malaysian ASTA black pepper remained stable at USD 8,900/ton.

 Vietnam's black pepper  export  price ranges from 6,140 - 6,270 USD/ton for 500 g/l and 550 g/l black pepper.

Type name	World black pepper price list
	July 31 (Unit: USD/ton)	% change from previous day
Lampung Black Pepper (Indonesia)	7.109	+0.07
Brazilian Black Pepper ASTA 570	6,000	+1.67
Kuching Black Pepper (Malaysia) ASTA	8,900	–
Vietnamese black pepper (500 g/l)	6.140	–
Vietnamese black pepper (500 g/l)	6,270	–

At the same time of survey, the price of Indonesian Muntok white pepper increased by 7 USD/ton, up to 9,937 USD/ton.

Vietnam white pepper remained stable at 8,850 USD/ton, while Malaysian ASTA white pepper reached 11,750 USD/ton.

Type name	World white pepper price list
	July 31 (Unit: USD/ton)	% change from previous day
Muntok Indonesian White Pepper	9,937	+0.07
ASTA Malaysian White Pepper	11,750	–
Vietnam white pepper	8,850	–

Update pepper information

On July 30, 2025, the Vietnam Pepper and Spice Association (VPSA) sent Official Dispatch No. 77/CV-VPSA to relevant agencies, including the Government Office, the National Assembly, the Ministry of Finance, the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade and relevant ministries and branches, requesting a review of the value-added tax (VAT) policy applicable to the pepper and spice industry.

According to VPSA, the Vietnamese pepper industry currently produces about 200,000 tons per year, of which 95% (190,000 tons) is exported. However, only about 2.5% of output (5,000 tons) is deeply processed and consumed domestically – the only part subject to VAT. The rest is exempt from tax and businesses are refunded VAT.

With an export turnover of 1.3 billion USD, the 5% VAT for the whole industry is equivalent to 65 million USD. However, only about 1.625 million USD of tax is actually collected from domestic consumption, the remaining 63 million USD must be refunded to exporting enterprises.

The same situation applies to other spice groups. Of the total of more than 400,000 tons of spices exported in 2024, only 10,000 tons will be consumed domestically, generating about VND55 billion in VAT, while the expected tax refund is about VND2,135 billion.

VPSA expressed concern that the current tax refund mechanism is creating loopholes, giving rise to fraud, causing damage to legitimate businesses and affecting transparency in tax administration. Therefore, exporting enterprises are concerned that these shortcomings will continue when the new VAT Law takes effect from July 1, 2025.

To support sustainable industry development, VPSA proposes a number of solutions:

– Apply 0% VAT to 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.

– It is possible to consider the possibility of applying a 0.5% export tax. This solution will immediately help the State collect taxes on export transactions, contributing to supporting the implementation of the task of  collecting budget   from taxes while helping businesses have proactive business capital, fast capital turnover, and not having to wait for suspended tax refunds.

– Maintain 5% VAT on input materials for production, processing and domestic consumption.

- Propose that the Ministry of Finance consider and report to the superior agency for consideration and permission to postpone the implementation of the VAT Law after July 1, 2025.

The association emphasized that in the context of the industry's export profit margin of only 1-3% and great competitive pressure from countries such as Indonesia, India, and Brazil, continuing to apply the current tax refund mechanism will be a major barrier to the industry's sustainable development.

According to VietnamBiz.vn