Vietnam takes measures to promote sustainable development of cinnamon industry

On the morning of November 15, the Forestry Bureau of the Ministry of Agriculture and Rural Development of Vietnam, the IDH Organization, and the Vietnam Pepper and Spice Tree Association jointly held a national seminar on the sustainable development of Vietnam’s cinnamon industry in Hanoi. At the meeting, the Pepper and Spices Public-Private Partnership (PPP) Working Group and the Cinnamon Industry Subcommittee were officially unveiled.

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Vietnam is a global leader in cinnamon production and exports, with a planting area of about 180,000 hectares. In 2022, Vietnam accounted for 18.2% of global production but held a significant 34.4% of the export market share, making it the largest exporter of cinnamon, with exports surpassing US$292 million. As of October 2023, the export volume reached 74,744 tons, valued at US$220 million. Although the export volume grew by 19.2% year-on-year, the export value decreased by 1.3%. The average export price was US$2,948 per ton, a 17.2% decline from the same period in 2022. India is the primary export market, accounting for 43.9% of the share, followed by the United States, Bangladesh, and others.

Hoang Thi Lien, chairman of the Vietnam Pepper and Spice Tree Association, emphasized the need for a strategic direction for the sustainable development of the cinnamon industry and a responsive research mechanism to meet market demands. Additionally, the organization of the cinnamon supply chain, especially the formation of cooperative groups and their connection with enterprises, requires attention.

Zhao Wenli, deputy director of the Forestry Department of the Ministry of Agriculture and Rural Affairs of Vietnam, outlined the development direction for the cinnamon industry. This includes land allocation and planning, system improvement, policy research, variety selection, raw material area development, production organization, and market development. These measures signify Vietnam's commitment to the sustainable development of its cinnamon industry, ensuring its continued growth and contribution to the global market.

Vietnam is the world's largest cinnamon producer, with a planting area of approximately 180,000 hectares. In 2022, Vietnam's cinnamon production accounted for 18.2% of global cinnamon production, but accounted for 34.4% of the global cinnamon export market share. Vietnam is also the world's largest exporter of cinnamon, with exports exceeding US$292 million.