Vietnamese cinnamon exports surge over 10-month period
VOV.VN - Vietnam raked in more than US$220 million from exporting 74,744 tonnes of cinnamon during the ten-month period, representing a rise of 19.2% in volume and a drop of 1.3% in value against the same period from last year, according to details given by the Vietnam Pepper Association.
The average export price of cinnamon throughout the reviewed period dropped by 17.2% to US$2,948 per tonne on-year.
The main export markets of Vietnamese cinnamon include India with 32,795 tonnes, up 4.7%, followed by the United States with 8,379 tonnes, up 11.2%, Bangladesh with 4,780 tonnes, up 25.7%, Brazil with 2,538 tonnes, up 30.6%, and Indonesia with 2,202 tonnes, up 75.7%.
Nguyen Nhu Tiep, director of the Agro-Forestry Fisheries Quality Assurance Department under the Ministry of Agriculture and Rural Development, said that due to the growing demand for raw materials in the food and cosmetic industries, Vietnamese cinnamon, and anise have been widely consumed in many regions such as South Asia in India and Bangladesh, the Middle East in the UAE and Pakistan, East Asia in Japan and Taiwan (China), the Republic of Korea, the US, and the EU.
Le Viet Anh, chief of Office of the Vietnam Pepper Association, pointed out that despite Vietnam boasting advantages in exporting spices due to free trade agreements such as the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnamese spice industry faces many challenges.
Specifically, the cinnamon industry has yet to devise a sustainable national development strategy, while local businesses still lack technology and capital to invest in deep processing as a means of increasing their product value, Anh said.
Furthermore, geopolitical instability may lead to price instability rather than supply and demand factors while local firms have faced tough competition from other manufacturing countries such as Indonesia and China.
Insiders analysed that there remains plenty of room to boost cinnamon exports to the EU and US markets, noting that local businesses are required to abide by stringent requirements in terms of controlling toxic substances, pesticide residues, heat treatment, plant quarantine, food safety, and transparent supply chain to make further inroads into the market.
