May 2024 Sees Significant Surge in Cinnamon Exports

Vietnam's cinnamon exports reached 11,176 tons in May 2024, bringing in $31.1 million. This marked a sharp increase of 75% in volume and 63% in value compared to April. India, Bangladesh, and the US were the top destinations, accounting for 4,514 tons, 1,693 tons, and 1,043 tons, respectively.

Certain markets saw remarkable growth in May. Exports to Indonesia skyrocketed by 600%, while shipments to China jumped by 513.6%, showcasing Vietnam’s expanding global reach. During the first five months of 2024, Vietnam exported 33,528 tons of cinnamon, earning $96.3 million. While these figures demonstrate strong performance, they represent a slight year-on-year decrease of 1.1% in volume and 4.4% in value compared to 2023.

Enhancing Quality and Sustainability in Cinnamon Farming

According to Ms. Lien, President of the Vietnam Pepper and Spice Association, farmers are adopting advanced farming techniques to boost both the quality and productivity of cinnamon trees. Collaborations between farmers and businesses have also strengthened, supporting the development of sustainable raw material zones.

Vietnamese companies have invested heavily in modern processing facilities to produce high-quality cinnamon that meets the demands of international markets. These improvements are positioning Vietnam as a key player in the global cinnamon industry.

Leveraging Trade Agreements for Market Expansion

Vietnam's participation in 16 free trade agreements has given its cinnamon industry a significant competitive edge by reducing tariffs in key markets. The country now exports cinnamon to nearly 100 countries, with substantial shares in major markets:

• 95% of India’s market share
• 36.5% of the US market share
• 35% of the European market share

Aiming for Leadership in Global Cinnamon Supply

Vietnam’s cinnamon sector is focused on improving post-harvest processing to meet the stringent requirements of markets like Europe and the US. Key strategies include:

1. Trade Promotion: Expanding international outreach and building a national brand identity.
2. Public-Private Partnerships: Encouraging collaboration to ensure sustainable growth.
3. Strategic Policy Support: Seeking resources and expert consultation to maintain competitiveness.

These efforts aim to solidify Vietnam’s position as the world’s leading supplier of sustainable cinnamon.

Conclusion: A Promising Future for Vietnam’s Cinnamon Exports

Despite minor setbacks in overall export figures, Vietnam’s cinnamon sector shows strong potential for growth. With improved farming techniques, modern processing capabilities, and strategic use of trade agreements, the country is well-positioned to lead the global cinnamon market in the years to come.





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