Asia represents Vietnam’s largest cinnamon import market

According to preliminary statistics released by the Vietnam Pepper and Spice Association (VPSA), the nation’s cinnamon imports in July alone hit 245 tonnes valued at US$0.7 million, marking a drop of 13.1% in volume compared to the previous month earlier.

The past seven months of the year saw the nation import 2,979 tonnes of cinnamon, with a turnover of over US$7.1 million, marking a drop of 75.2% compared to the same period from last year. Of which, imports from Indonesia and China reached 1,299 tonnes and 1,242 tonnes, respectively.

Cinnamon is mainly grown in Vietnam, China, Indonesia, and Sri Lanka. Cinnamon cultivation is currently the livelihood of hundreds of thousands of ethnic minority households in remote provinces, while simultaneously contributing to the socio-economic development of many localities.

Cinnamon has many uses in terms of production and general life, such as being used as a spice, flavouring, medicine, used to process food, raise livestock and poultry, or used as fertilizer.

Vietnam boasts a diverse array of medicinal resources, many of which are both precious and rare. However, this is not a source of goods that has a high export turnover. The main reason is that there is no planning for the development of medicinal plants in the nation, which is spontaneous without specific output, so there is still a situation of destruction due to lack of consumption.

In 2023, the country exported nearly 90,000 tonnes of cinnamon with a total export turnover of more than US$260 million, an increase of 14.6% in output but a fall of 10.7% in value compared to 2022. Vietnam's major export markets in 2023 were India, the United States, and Bangladesh.

The world's demand for spices remains high, not only in the food industry, but also due to its uses in the research and development of applications in the pharmaceutical, cosmetic, and functional food industries. Vietnam has dozens of companies investing in modern cinnamon processing lines, producing ground cinnamon and cinnamon powder which can fully meet market demand.

Statistically, the Vietnamese cinnamon growing area is up to 180,000 hectares in the northern mountainous provinces and the northcentral region. Indeed, the country’s cinnamon bark reserves are estimated at about 900,000 tonnes to 1,200,000 tonnes, with an average harvest of 70,000 tonnes to 80,000 tonnes per year. Vietnam is also the world's leading cinnamon exporter with a turnover of over US$ 292 million in 2022.

However, in addition to domestic production, Vietnam also imports a quantity of cinnamon from neighbouring countries for exports.