In 2022, Vietnam’s cinnamon export turnover will reach nearly 300 million USD, accounting for 18.2% of output and 34.4% of the global cinnamon export market share. With this result, Vietnam becomes the number 1 cinnamon exporter in the world…
On November 15, 2023 in Hanoi, the Department of Forestry (Ministry of Agriculture and Rural Development), in collaboration with the IDH Organization and the Vietnam Pepper – Spice Association, organized the “National Development Workshop”. sustainability of Vietnam’s cinnamon industry”. At the same time, the Public Private Partnership (PPP) Working Group on pepper and spices and the Cinnamon Industry Subcommittee were launched.
VIETNAM LEADS THE WORLD IN CINNAMON EXPORT
Speaking at the opening of the conference, Mr. Trieu Van Luc – Deputy Director of the Forestry Department (Ministry of Agriculture and Rural Development) said that Vietnam is the country with the third largest cinnamon growing area in the world, with 180,000 acres. ha.
Cinnamon growing is currently a livelihood for hundreds of thousands of ethnic minority households in remote provinces, while contributing to the socio-economic development of many localities. Cinnamon has many uses in production and life such as being used as a spice, flavoring, medicine, used to process food, raise livestock and poultry or used as fertilizer…
“Through monitoring, the potential advantages of the cinnamon industry have not been adequately promoted. The reason is that production organization and value chain linkages do not exist, and planting, care, pre-processing and preservation techniques are still weak. Besides, there is still a lack of high quality cinnamon products. In addition to traditional markets such as the United States, India, China, and Japan, to enter the EU market, cinnamon quality must be high and meet the Non-Deforestation Regulations set by the European Commission (EC). This is something people must pay attention to in organizing cinnamon production,” Mr. Trieu Van Luc shared.
Ms. Hoang Thi Lien, President of the Vietnam Pepper and Spice Association, said cinnamon is mainly grown in Vietnam, China, Indonesia like Casia and Madagascar, and Sri Lanka like Ceylon. In Vietnam, cinnamon is grown in provinces such as Yen Bai, Lao Cai, Bac Kan, Quang Ninh, Quang Nam, Quang Ngai, Thai Nguyen.
In 2022, Vietnamese cinnamon accounts for 18.2% of output but 34.4% of the global cinnamon export market share. Vietnam is also the number 1 cinnamon exporter in the world with a turnover of over 292 million USD.
By the end of October 2023, Vietnam exported 74,744 tons of cinnamon, with 220.3 million USD, up 19.2% in volume and down 1.3% in value compared to the same period last year. The 10-month average cinnamon export price reached 2,948 USD/ton, down 17.2% over the same period in 2022. The main export market for Vietnamese cinnamon is India, accounting for 43.9% of the market share, followed by America, Bangladesh…
According to Ms. Lien, in our country there have been a number of enterprises investing in modern cinnamon processing factories, especially some FDI enterprises, but this is still not enough compared to the whole cinnamon industry in Vietnam.
LAUNCHING THE SUBGROUP OF PUBLIC – PRIVATE PARTNERSHIPS IN CINNAMON GOODS INDUSTRY
Talking about the problems of Vietnam’s cinnamon industry, Ms. Hoang Thi Lien said that Vietnam does not have a strategic direction for sustainable development at the national level; lack of mechanism to produce research to promptly respond to market requirements; chemical residues glyphosate (found in herbicides) and active ingredient chlorpyrifos (found in pesticides) and metal content: lead and mercury; The quality of seedlings is still unclear, there is no research on new breeds; There is no organization that acts as a focal point to connect organizations together, leading to individual activity programs.
Meanwhile, there is still a lack of technology and capital to invest in deep processing to increase the value of cinnamon products; The specialized technical capacity of agricultural and forestry extension does not meet practical requirements and lacks experts and documents.
At the seminar, Ms. Laura Shumow – Executive Director, American Spice Trade Association (ASTA) updated new regulations related to exporting cinnamon to the US market. Accordingly, cinnamon is a product with a lot of export potential, but the product is also affected by the trend of green consumption, reducing emissions and carbon; Products must have traceability; quality assurance, especially pesticide residues. For example, in the US, this market strictly controls the use of banned substances.
At the workshop, the Forestry Department announced the Decision of the Ministry of Agriculture and Rural Development to adjust the Public-Private Partnership (PPP) Working Group on Pepper into the Public-Private Partnership (PPP) Working Group on Pepper. and Spices; At the same time, introducing the co-chairs of the PPP Group of Cinnamon Industry Subcommittee.
Mr. Trieu Van Luc, representative of the PPP Working Group, gave directions for the development of the cinnamon industry including; Determine land fund and planting area size; perfect institutions, policies, and mechanisms specific to cinnamon; research, select, create, and produce cinnamon tree varieties; develop raw material areas; Organize production, develop primary processing and processing facilities and product consumption markets.
With the establishment of the Public-Private Partnership Working Group, Mr. Huynh Tien Dung, Country Director, IDH Organization in Vietnam, said that public and private sector parties are not just now starting to discuss cooperation and cooperation. support the cinnamon industry.
In recent times, with the connection of the IDH Organization and a number of non-governmental organizations, the public and private sectors have coordinated to implement many dialogue activities and cooperate to develop training materials for farmers. Coordinate with cinnamon companies to carry out many projects linking sustainable cinnamon production, piloting carbon emission measurement tools in the cinnamon supply chain.
“Many businesses have linked with farmers to transfer technology and train on organic cinnamon cultivation, but they are still small; Some businesses have initially linked up in production and processing, but the cinnamon industry has not received adequate investment attention. The official decision of the Ministry of Agriculture and Rural Development has raised the level of commitment to public-private cooperation to a new, more comprehensive level,” Mr. Huynh Tien Dung emphasized.