“The Billion-Dollar Tuber: How Vietnam Became the World’s Second-Largest Producer, Supplying China’s Insatiable Demand with 10 Million Tons Annually.”

Vietnam holds an advantage in agricultural products, from fruits, timber to spices, earning billions of USD annually… Notably, our country also boasts a billion-dollar root crop – cassava.

Currently, over 40 provinces in Vietnam cultivate cassava, concentrated in five key regions: the Mid-Mountainous Region of the North, North Central Coast, South Central Coast, Central Highlands, and Southeast, with an area ranging from 520,000 to 550,000 hectares. The yield reaches 19-20 tons/ha, and the output surpasses 10 million tons of fresh cassava roots.

Regarding export status, according to preliminary statistics from the General Department of Customs, the export of cassava and cassava products in August reached over 191,000 tons, valued at more than $86 million, a decrease of 12.4% in volume and a drop of 17.8% in value compared to the previous month.

For the first eight months, Vietnam earned more than $822 million from cassava exports, with a volume of over 1.7 million tons. Although the volume decreased by 3.8%, the value increased by 7% compared to the same period in 2023.

In terms of market distribution, China remains the largest importer of Vietnamese cassava, with a volume of over 1.65 million tons and a value of more than $75 million, a decrease of 2% in quantity but an increase of 9% in value compared to the previous year. The export price averaged $454/ton, up 12% from the previous year.

South Korea ranked second, with over 36,000 tons and a value of more than $11 million, a decrease of 54% in volume and 62% in value. The price also dropped by 17% from the previous year, settling at $312/ton.

Taiwan was the third-largest export market, with nearly 34,000 tons and a value of over $18 million, an increase of 5.5% in volume and 15% in value. The export price also rose by 9%, reaching $550/ton.

Along with Thailand, Vietnam dominates the global export supply, with a turnover of over $1.3 billion in 2023. However, according to experts, the export of cassava and cassava products from Vietnam is still heavily dependent on the Chinese market, which entails considerable risks.

The most significant challenge in the billion-people market is the decreasing demand for cassava due to the lower price of corn starch compared to cassava, leading to higher purchases of corn starch.

Cassava has multiple industrial uses, including animal feed and food products. The roots are consumed fresh, used for animal feed, and processed into dried cassava slices, crushed cassava flour, cassava starch, modified cassava starch, and various products derived from cassava starch.

The stems are utilized for propagation, mushroom cultivation, firewood, and cellulose industry raw material. Cassava leaves serve as animal feed for fish farming and silkworms and are then exported to markets in South Korea, Japan, and regions with a high Asian population.

The stockpile of dried cassava slices by enterprises in the 2023-2024 season is estimated to be only 60% of the previous year’s stockpile. This could be attributed to high input costs, lackluster consumption demand, and low output prices, posing significant risks to enterprises storing goods in warehouses.