The Vietnam - UAE Comprehensive Economic Partnership Agreement (CEPA) along with a massive food import demand are opening up new growth room for Vietnamese pepper, creating opportunities for enterprises to expand market shares in the Middle East in the coming period.

According to the Vietnam Pepper and Spice Association (VPSA), Vietnam's pepper exports are standing before a notable growth opportunity as the Middle East and South Asia continue to emerge as leading spice consumer markets in the world.

After many years of being evaluated as rich in potential but having not fully exploited all available room, this region is becoming an attractive destination thanks to stable purchasing power and new-generation free trade agreements (FTAs).

The most notable driver comes from the Vietnam - UAE Comprehensive Economic Partnership Agreement (CEPA), which entered into force on February 3, 2026. The agreement is expected to create additional competitive advantages for Vietnamese agricultural products, including pepper, in one of the largest food importing regions in the world.

According to VPSA, in 2025, Vietnam's pepper and spice exports reached more than 2.1 billion USD, the highest level ever recorded. The Middle East and South Asia regions specifically hold a particularly crucial role, as Vietnam accounts for about 60% of the Middle East's imported pepper volume and supplies up to 90% of South Asia's cinnamon demand, primarily to India and Bangladesh.

The growth momentum has continued to be maintained during the first 5 months of 2026 when pepper and spice exports reached over 982 million USD, up 9.5% compared to the same period last year. Pepper alone achieved a value of nearly 790 million USD, an increase of nearly 14% over the same period.

Mr. Le Viet Anh - General Secretary of the Vietnam Pepper and Spice Association, stated that the Middle East and South Asia are spice consumer markets belonging to the largest groups globally.

“Pepper, cinnamon, star anise, ginger, or turmeric are all familiar components in the daily meals of people in this region, so the demand is relatively stable,” Mr. Le Viet Anh assessed.

Not only that, many nations belonging to the Gulf Cooperation Council (GCC) must import over 80% of their food demands. Besides, the UAE serves as the largest logistics and cargo re-export hub in the region as approximately 40-50% of imported goods continue to be distributed to GCC countries, Africa, and South Asia.

However, experts argue that enterprises cannot rely solely on tariff advantages. To effectively utilize opportunities during the 2026-2030 period, enterprises need to satisfy Halal standards, rules of origin, and step up deep processing. This is regarded as the key helping Vietnamese pepper elevate its export value, instead of merely competing by volume.

Source: Tap chi Kinh te - Tai chinh