中文 (中国)Vietnam is the third largest cinnamon producer in the world, after Indonesia and China. Currently, the demand is greater than the supply, the market is in favor of the producer. The potential for market development for cinnamon is great, however, it also poses many challenges for the sustainable development of cinnamon in Vietnam.
Cinnamon export turnover is still modest
According to the World Spices Association, Vietnam ranks third in the world in cinnamon production, second after China in star anise production. Cinnamon and anise are sold strongly in the markets of India, the Middle East, Japan, Korea, the US and European countries with export revenue of about 400 million USD/year. In countries with a developed processing industry, cinnamon and anise are the main ingredients in the production of cosmetics and pharmaceuticals. Although the export turnover of cinnamon and anise products is relatively modest compared to other wood products, with more than 200,000 hectares of cinnamon and star anise forest, it is currently a sustainable livelihood for more than 200,000 ethnic minority households in remote provinces.
Fear of unsustainable development
Currently, Vietnam’s total cinnamon output reaches 41,408 tons, accounting for 17% of global production. Demand for cinnamon is growing faster than global supply, currently estimated at 8-12%. The imbalance between supply and demand has caused the price of cinnamon to increase, especially since 2016 until now. This situation may lead to the massive transformation of cinnamon development in Vietnam.
Besides production activities, there is also an increase in activities related to purchasing, processing and exporting cinnamon between domestic and foreign enterprises. If there are no strategic, timely and sustainable directions for management and development of the cinnamon industry, it may lead to confusion for local management agencies, difficulties in meeting the quality barriers, price risks, and output market risks and may lead to negative consequences and impacts for cinnamon growers and businesses related to cinnamon processing and export in Vietnam.
Making recommendations for the development of cinnamon in Vietnam, experts said that it is necessary to focus on producing high-value, certified raw materials, according to international technical standards, with guaranteed and stable quality. In addition, it is necessary to control the supply chain as well as increase export output to the EU and North America.
And the establishment of Vietnam Anise Cinnamon Association is a really necessary thing to ensure the rights as well as share market information and development orientation for member units.