Vietnam owns hundreds of thousands of hectares of cinnamon and has earned nearly 250 million USD since the beginning of the year from this tree.
Statistics from the Vietnam Pepper Association (VPA) show that Vietnam’s cinnamon exports in November reached over 10,700 tons with a value of over 28.8 million USD. This was an increase of 5.8% in volume compared to October. India and the US were the two main markets for Vietnam’s cinnamon exports, accounting for 41.2% and 11.7%, respectively.
From the beginning of the year to the end of November, Vietnam exported 90,270 tons of cinnamon, worth 249.2 million USD, an increase of 10.2% in volume and 4% in value. The main export markets for Vietnamese cinnamon included India with 31,829 tons, the US with 9,867 tons, and Bangladesh with 7,536 tons.
Cinnamon tree has a lot of potential.
According to data from Tridge, the production of cinnamon by the four largest producers in the world is as follows: Indonesia with 89,000 tons, China with 82,000 tons, Vietnam with 41,000 tons, and Sri Lanka with 24,000 tons.
Vietnam has a cinnamon production of about 41,000 tons per year, only half of that of China and Indonesia; however, the country is now leading the world in cinnamon export value. In 2022, Vietnamese cinnamon accounted for 18.2% of the production but 34.4% of the global cinnamon export market share, with a turnover exceeding 292 million USD.
The total cinnamon area in Vietnam is currently about 180,000 hectares, mainly in the northern mountainous region. Yen Bai is the province with the largest area of cinnamon nationwide, with over 80,000 hectares, accounting for one-third of the province’s planted forest area. Annually, the yield of cinnamon bark reaches about 18,000 tons; cinnamon branches and leaves exceed 85,000 tons; and cinnamon wood (after harvesting) is about 200,000 m³. Annually, the yield of harvested cinnamon bark reaches about 18,000 tons; cinnamon branches and leaves exceed 85,000 tons; and cinnamon wood (collected after harvesting) reaches 200,000 m³.
Many uses of the cinnamon tree exist in production and daily life, including its use as a spice, a medicinal herb, in food processing, and as fertilizer. The parts of the tree, including leaves, bark, branches, and wood, are utilized.
According to the VPA, the cinnamon tree has a lot of potential because the demand from high-quality markets such as the US and Europe continues to increase. Besides, Vietnam also benefits from many new-generation FTAs, such as CPTPP and the VPA/FLEGT Agreement. Many types of tariffs on wood and wood products have been reduced or eliminated.
Because of limited scale, financial resources, and technologies, cinnamon in Vietnam only reaches a production value of 40 million VND/ha/year. To boost cinnamon exports in the coming time, experts advise domestic cinnamon-exporting enterprises on the levels of heavy metal residues. To adapt to this requirement, it is necessary to ensure quality and food safety while promoting organic cinnamon cultivation for sustainable development.