Cinnamon: A Spicy Journey from Vietnam to the World
Illustrative image
Cinnamon, a precious spice with a limited growing range, is abundantly found in Vietnam. Only a handful of countries can cultivate this aromatic tree, primarily in Indonesia, China, and Sri Lanka. In Vietnam, cinnamon is grown in the provinces of Yen Bai, Lao Cai, Bac Kan, Quang Ninh, Quang Nam, Quang Ngai, and Thai Nguyen, spanning an impressive 180,000 hectares.
According to statistics from the Vietnam Pepper Association (VPA), Vietnam’s cinnamon export volume in July 2024 reached 9,871 tons, earning a revenue of $27.3 million.
Cumulative figures for the first seven months of the year show that Vietnam exported over 54,000 tons of cinnamon, equivalent to $154.1 million, marking a 6% increase in volume and a 0.2% rise in value. Prosi Thang Long led the way in exports, accounting for 14% with 7,660 tons.
India remains the largest export market for Vietnamese cinnamon, and Vietnam is the dominant supplier to this market. In the 2022-2023 financial year alone, Vietnam exported over 32,000 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 aroma. India imports cinnamon from Vietnam for two primary purposes: domestic consumption and re-export after processing.
Cinnamon is the oldest spice in the world, first discovered and used in ancient China. It later made its way to Europe and spread globally through trade. Typically, cinnamon trees in lower-altitude forests can be harvested after 3-5 years, but for premium quality, the trees must mature for at least 15 years. All parts of the cinnamon tree, including the bark, leaves, flowers, wood, and roots, are usable.
To increase the market share of Vietnamese spices in the global arena, experts suggest that in addition to raw materials, there is a need to diversify spice products to cater to the food industry and the cosmetics, pharmaceutical, and perfumery sectors.
Spice crops not only provide economic value but also contribute to poverty alleviation and the conservation of biodiversity under forest canopies. These are crucial factors that businesses can emphasize to promote Vietnamese spices in the context of green consumption, environmental protection, and emission reduction.
One challenge faced by cinnamon-derived products is the hurdles encountered by cinnamon essential oil. In late 2023, its selling price dropped to a range of 280-330 million VND/ton due to low demand. The product couldn’t be exported due to incompatible regulations.
However, in recent months, the price of cinnamon essential oil has started to recover, now ranging from 360-400 million VND/ton. This improvement is expected to continue as issues regarding export codes are actively addressed by relevant authorities.
The Korean Real Estate Tycoon’s Vision: A Sprawling 184-ha Golf Course Near Vietnam’s Busiest Airport
On August 29, 2024, the People’s Committee of Tho Xuan district held a working session with the Korea Land Corporation (LH Group) regarding the construction of a golf course within the planned Lam Son – Sao Vang township and the district’s new administrative center project.
The Approaching Storm: Northern Central Provinces Brace for Typhoon No. 3
Amidst predictions of Storm No. 3’s impending impact, authorities in the North Central provinces swiftly mobilized their resources to brace for the oncoming storm.
The Art of Refining State Treasury Securities Issuance
The credit institution is mandated to purchase the treasury bills issued by the State Bank, as per the directive of the Governor of the State Bank.
The $165 Million Industrial Park Project: Aiming for $2 Billion in Investments and 18,000 New Jobs
The Thai Binh province is set to establish Vietnam’s first-ever Pharmaceutical and Biologics Industrial Park by next year. This innovative hub will serve as a magnet for foreign pharmaceutical and medical device companies, inviting them to establish a presence in Vietnam. The park presents a unique opportunity for technology transfer and research collaborations, fostering an environment conducive to high-value inventions and exports.
