Việt Nam is the third-largest cinnamon producer and exporter in the world after Indonesia and China, and the future is full of potential. However, challenges need to be carefully navigated to ensure sustainable development.
Vietnamese star anise and cinnamon are consumed by markets in India, the Middle East, Japan, South Korea, the US, and Europe with annual export revenue reaching about US$400 million.
A report from Việt Nam Timber and Forest Products Association revealed a partner from the UK is looking for a reputable cinnamon supplier to import 50 containers of Vietnamese cinnamon to Kenya including rolled, chopped, and crushed products.
Last November, customers from Saudi Arabia imported powdered and split cinnamons from Việt Nam with a volume of about 5-10 tonnes over two or three months by transportation to Jeddah Port of Saudi Arabia.
With a total area of about 200,000ha, cinnamon cultivation employs hundreds of thousands of ethnic minority households in remote areas and contributes to the socio-economic development of many municipalities.
Despite these advantages, the Vietnamese cinnamon industry is still facing difficulties and challenges.
A workshop titled “Sustainable Development of Việt Nam’s Cinnamon” was co-organised recently in Hà Nội by the Việt Nam Administration of Forestry (VNForest), the Ministry of Agriculture and Rural Development and the Stitchting Sustainable Trade Initiatives (IDH).
Speaking at the event, Nguyễn Quế Anh, Chairman of the Board of Directors of Vietnam Staraniseed Cassia Manufacturing and Exporting Joint Stock Company (VINASAMEX ), said that cinnamon growers still employ old practices and do not pay much attention to the application of advanced science and technology in cultivation and production.
This leads to their products’ quality not being high enough to meet standards for international export, according to Anh.
Anh also said about 70 per cent of cinnamon and anise varieties are produced by farmers based on their own experience, so their quality is not guaranteed. The remaining 30 per cent are supplied by agricultural companies or new planting projects of the local authorities.
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urrently, the country has more than 600 companies operating in the field of spices. However, most of them are trading and only interested in buying and selling, but not in building a connection with farmers. Only a few are cooperating with farmers in the value chain. Because of this, farmers often face price issues similar to other agricultural products.