Vietnam maintains its position as the principal cinnamon exporter worldwide, dispatching nearly 90,000 tonnes last year to generate over $260 million. This represents a 14.6% boost in volume but a 10.7% reduction in value relative to 2022, with an average price drop of 22.1% to $2,918 per tonne.
India tops the list of Vietnamese cinnamon importers, buying over 38,000 tonnes, or 42.6% of Vietnam’s total exports. The U.S. and Bangladesh follow, with imports exceeding 10,100 tonnes and approaching 6,000 tonnes, respectively. Early this year, Vietnam secured $30 million from exporting 10,500 tonnes of cinnamon.
Hoang Thi Lien, president of the Vietnam Pepper and Spice Association (VPSA), emphasized the adoption of advanced farming techniques and the creation of production linkages between businesses and farmers. These developments aim to elevate cinnamon quality and productivity, while expanding areas for sustainable raw materials.
Vietnam hosts a number of enterprises investing in contemporary cinnamon processing lines to produce superior products meeting diverse market demands. The country benefits from 16 free trade agreements, including major ones like the EU-Vietnam FTA, CPTPP, and RCEP, which offer tax advantages, enhancing Vietnam’s market competitiveness.
Vietnamese cinnamon reaches nearly 100 countries, commanding 95% of India’s market share, 36.5% of the U.S., and 35% of Europe’s market. However, processed cinnamon constitutes only 18.6% of exports, predominantly to the U.S. and Europe.
The strategy moving forward includes refining post-harvest processes and product quality to appeal to the exacting markets of Europe and the U.S. The sector plans robust trade promotion, brand development at a national level, and the enhancement of public-private partnerships. These efforts are designed to secure Vietnam’s future as the foremost sustainable cinnamon supplier on the global stage, reinforcing its dominant position in the spice industry.
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