Pepper Association urges caution before signing export contracts

Friday, Aug 09, 2013 07:50

HA NOI (Biz Hub)— Pepper enterprises needed to be aware of the risks in considering export volumes, prices, payment methods and delivery times when signing export contracts, the Viet Nam Pepper Association suggested.

The world economic recession along with the social and political changes in North Africa and the Middle East had influenced import/export, particularly when it came to payment, the association said.

Domestic pepper supply this year was estimated to reach only 115,000 tonnes, 87,600 tonnes of which had already been shipped abroad by July 15, the association said. It left a limited amount for export by year-end.

Viet Nam is currently the world leader in terms of pepper output. However, 70 per cent of its pepper exports are in the form of raw materials with low value.

The country exports pepper to more than 90 countries and territories but most consumers are unaware that it originated from Viet Nam because it is processed and packaged overseas.

Six foreign-invested businesses currently buy and process pepper in Viet Nam, accounting for nearly 40 per cent of the country's total pepper export turnover last year.

Association chairman Do Ha Nam said pepper businesses should work together to maintain their global market share while exporters must hone their competitive edge to stay ahead of foreign rivals. — VNS

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