The Ultimate Guide to the World’s Most Expensive Timber: A Rare Tree Species Found in Abundance in Vietnam, with 180,000 Hectares of Forest.

Vietnam boasts a versatile and economically valuable tree: the cinnamon tree. With an estimated 180,000 hectares of cinnamon plantations in the northern mountainous regions and north-central coast, Vietnam is a significant producer of this spice.

Interestingly, while cinnamon is widely cultivated in Vietnam, only a handful of other countries have successfully grown this tree. These include China, Laos, Myanmar, India, Sri Lanka, and some South American nations.

Scientifically known as Cinnamomum loureirii Nees, from the Lauraceae family, this tree can grow to impressive heights of 10-20 meters. Its bark is rough and fissured, and the tree branches out profusely. Growing wild in forests or cultivated from seeds, cuttings, or layers, cinnamon trees can be harvested after just five years, but the best bark is obtained from trees that are 20-30 years old. The ideal time to peel the bark is in April-May or September-October when the tree is producing resin.

Typically, cinnamon trees in shorter forests can be harvested after 3-5 years. However, for premium quality, the trees should be at least 15 years old. All parts of the cinnamon tree, including the bark, branches, leaves, flowers, wood, and roots, are usable. However, the primary focus is on harvesting the bark, branches, and leaves, which are then dried or used for essential oil extraction.

Vietnam’s estimated cinnamon bark reserves stand at 900,000-1,200,000 tons, with an average annual yield of 70,000-80,000 tons. In 2022, Vietnam was the world’s leading cinnamon exporter, with a turnover of over $292 million.

According to preliminary statistics from the Vietnam Pepper Association (VPA), cinnamon exports in June reached 11,333 tons, earning over $30.6 million, a 1.4% increase from the previous month. As of June 2024, Vietnam has exported 44,528 tons of cinnamon, with a turnover of $126.9 million. Compared to the same period in 2023, the export volume has increased by 3.9%, while the turnover has decreased by 1.8%. India is the largest market for Vietnamese cinnamon, accounting for 33.5% of exports, or 15,040 tons.

India imports approximately 11-12 million tons of spices annually, and Vietnam is the leading supplier of cinnamon to this market. In the 2022-2023 financial year, Vietnam exported 32,650 tons of cinnamon, accounting for 85% of India’s cinnamon imports.

Vietnamese cinnamon is favored in India due to its high essential oil content and distinctive flavor. India imports cinnamon from Vietnam for two main purposes: domestic consumption and re-export after processing.

According to the Ministry of Industry and Trade, Vietnam is recognized as a country rich in medicinal plants, with a diverse range of natural and rare medicinal resources. It is estimated that Vietnam is home to over 5,100 species of medicinal plants, presenting significant potential for developing the medicinal plant industry into a thriving economic sector.

The cinnamon essential oil industry holds immense growth potential due to the high global demand for cinnamon oil, which consistently outstrips supply. Cinnamon is primarily cultivated in a handful of Asian countries, ensuring a constant demand for this valuable spice.

Experts predict that the global market for organic spices will expand by at least 4.6% annually over the next decade, reaching a total value of $15 billion. Specifically, the cinnamon market is expected to grow by an average of 14% per year until 2025, presenting a significant opportunity for Vietnam, as cinnamon is a beloved spice in many countries.