Vietnam's cinnamon exports hits over 96.3 million USD in five months
Vietnam exported 11,176 tonnes of cinnamon, worth for 31.1 million USD in May, up 75% in volume and 63% in value month-on-month.
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| Processing cinnamon. (Source: VNA) |
India, Bangladesh and the US were the three main export markets of Vietnamese cinnamon with 4,514 tonnes, 1,693 tonnes, and 1,043 tonnes respectively. Notably, cinnamon exports to some markets saw a sudden increase in May, for example Indonesia up 600% and China by 513.6%.
But over the whole five months the export of cinnamon reached 33,528 tonnes, worth 96.3 million USD, marking modest decreases of 1.1% and 4.4% compared to last year.
Hoang Thi Lien, President of the Vietnam Pepper and Spice Association (VPSA), said farmers have been continuously developing new farming techniques to improve the quality and productivity of cinnamon trees.
In addition links between the farms and businesses have grown to gradually expand sustainable raw material areas.
Vietnam has dozens of companies investing in modern cinnamon processing lines for more quality products to meet market requirements.
Among the 16 signed free trade agreements, many are of a new generation, such as the EU-Vietnam FTA, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) , and the Regional Comprehensive Economic Partnership (RCEP), which have helped Vietnam maximise its tax advantage over other regions.
Currently, Vietnamese unprocessed cinnamon is exported to nearly 100 countries around the world, accounting for 95% of the Indian market's market share, 36.5% of the US market's market share, and 35% of the European market's market share.
However, the export rate of processed cinnamon is only 18.6%, or 18,659 tonnes, of which 70% is exported to the US and 12% to Europe.
The sector aims to continue to improve post-harvest processing quality to increase exports to demanding markets in Europe and the US.
It will step up trade promotion activities, build a brand identity on a national scale, encourage public-private partnership models and seek support resources and policy consultations in a long-term strategy of turning Vietnam into the leading sustainable cinnamon supplier in the world.
(Source: VNA)
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