FDI enterprises dominate pepper export market share

According to the Vietnam Pepper Association (VPA), there are currently 7 FDI enterprises participating in the purchase and export of pepper in Vietnam with a turnover in 2012 accounting for 36.6% of the total export turnover of this item (up 11 .6% compared to 2011).

Mr. Tran Duc Tung – Chief of Office of VPA said that in the first quarter of 2013, FDI enterprises had quite strong growth in export turnover compared to the same period last year, especially some enterprises increased by 280%.

“FDI enterprises are dominating the source of Vietnamese pepper raw materials with the advantage of capital sources and cross-national distribution capabilities. This is good when it comes to creating competition in the industry, but it also has the potential for domestic firms to lose market share. At the same time, some FDI enterprises show signs of transfer pricing by buying pepper at a high price but exporting at a low price to the parent company,” said Mr. Tung.

Regarding policies to help develop Vietnam’s pepper industry in general and domestic enterprises in particular, Mr. Tran Duc Tung said that currently Vietnamese pepper is exported to more than 90 countries around the world but has no brand name. All importers buy pepper from our country to pack their brands.

Therefore, VPA proposes that the Ministry of Industry and Trade coordinate with the Ministry of Agriculture and Rural Development to pay attention to support trade promotion programs, build brands, trace the origin of pepper in localities, and soon introduce pepper plants. VietGAP program.

Proposing the Ministry of Finance and the State Bank to consider adjusting the corporate income tax policy, support to reduce interest rates, create favorable opportunities for farmers and export business enterprises with favorable conditions in the future. access to low-interest capital sources and stable foreign currency loans.