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The Sustainable Development of Fresh Chili Industry in Thanh Binh District

Updated: Aug 25, 2023

With an annual production scale of over 1,300 hectares, supplying approximately 18,400 tons of fresh chili to the domestic and export markets, Thanh Binh District is considered the largest "chili hub" in Dong Thap Province. Alongside the advantages, this industry also faces challenges due to its significant dependence on the export market. Therefore, in order to help farmers maintain stable production and increase income from fresh chili cultivation, in recent years, the agricultural sector in Thanh Binh District has implemented various solutions to develop the chili industry in a more sustainable and profound manner.

Local businesses have been actively promoting the processing of chili products
Local businesses have been actively promoting the processing of chili products

In Thanh Binh District, fresh chili is commonly grown in the areas of Cu Lao Tay commune and some surrounding communes such as An Phong and Tan Thanh. According to chili farmers' assessment, fresh chili plants bring three times higher economic efficiency than rice and double that of other vegetable crops. This is the reason why the cultivation area of fresh chili continues to expand in the region.


Parallel to the strong development of fresh chili cultivation, in recent years, many related industries and services within the chili value chain have also thrived in the locality. According to the Department of Agriculture and Rural Development of Thanh Binh District, there are 10 enterprises in the district involved in purchasing and exporting fresh chili. Additionally, in recent years, local businesses have been actively promoting the processing of chili products. Currently, Thanh Binh District has several chili-derived products such as chili powder, chili sauce, dried chili, and chili salt. Among them, Ngoc Yen dried chili salt, produced by Ngoc Yen Salt Production Facility, is one of the most renowned and quality products on the market. For many consecutive years, Ngoc Yen dried chili salt has been honored as an outstanding rural industrial product at the regional and national levels, meeting the standards of the province's One Commune One Product (OCOP) program.


18,400 tons of fresh chili to the domestic and export markets
18,400 tons of fresh chili to the domestic and export markets

Determining the standardization of fresh chili cultivation areas to serve exports and processing is an important foundation for the sustainable development of the fresh chili industry at the local level. In recent times, the agricultural sector in Thanh Binh District has implemented various comprehensive measures, including guiding farmers to produce chili in a safe manner, supporting farmers in establishing cultivation area codes, assisting enterprises in obtaining packaging facility codes eligible for export, and more. With the strong involvement of the local authorities, in recent years, many enterprises have come to invest in Thanh Binh District, establishing fresh chili purchasing and processing centers. Notably, at the end of 2022, Thanh Binh District had three enterprises, namely Cam Long Dong Thap Co., Ltd., Quoc Viet Chili Hub Co., Ltd., and Dung Ot Co., Ltd., which were granted official registration numbers for exporting fresh chili to China by the General Department of Customs of China. This is good news and an important foundation for facilitating the consumption and export of chili products in the locality.


At present, chili prices range from 30,000 to 50,000 VND per kilogram
At present, chili prices range from 30,000 to 50,000 VND per kilogram

Mr. Vang Thanh Viet, the Director of Quoc Viet Chili Hub Co., Ltd. in Thanh Binh District, stated, "China is the largest export market for our company's chili products. On average, Quoc Viet Chili Hub Co., Ltd. exports 10,000 to 20,000 tons of fresh chili to this populous market each year. However, in recent years, changes in import policies for agricultural products in the Chinese market have posed many difficulties for exporting enterprises. Therefore, in order to continue exporting agricultural products to this market, both the companies themselves and the exported agricultural products must meet the strict criteria of our Chinese partners."


The fresh chili industry in Thanh Binh District
The fresh chili industry in Thanh Binh District

Since the beginning of this year, the Chinese market has reopened for Vietnamese chili products, which has helped stabilize chili prices. At present, chili prices range from 30,000 to 50,000 VND per kilogram, ensuring profits for farmers. To maintain this market, it is essential to ensure the quality of chili products and continuously improve the added value of these products through processing and diversifying product types.


In order to promote the sustainable development of the fresh chili industry in Thanh Binh District, local authorities have focused on disseminating advanced cultivation techniques and encouraging farmers to apply Good Agricultural Practices (GAP) standards, thereby minimizing the use of pesticides and fertilizers, ensuring food safety, and increasing product quality. In addition, the district has actively supported farmers in accessing preferential loans for investment in high-tech chili cultivation and has coordinated with research institutes and agricultural extension agencies to introduce new chili varieties with high economic efficiency and resistance to diseases. The application of scientific and technological advances in chili cultivation not only helps increase yields and improve product quality but also reduces production costs and enhances the competitiveness of chili products in the market.


Overall, the sustainable development of the fresh chili industry in Thanh Binh District reflects the district's commitment to promoting agricultural development and improving farmers' lives. By implementing comprehensive strategies, from cultivation techniques, processing, and export promotion, Thanh Binh District has made significant strides in developing the fresh chili industry sustainably. The fresh chili industry not only contributes to the local economy but also helps improve farmers' income and livelihoods. With continuous efforts and the support of the local authorities, it is expected that the fresh chili industry in Thanh Binh District will continue to thrive and become an important agricultural sector in Dong Thap Province.

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