India, Bangladesh and the US are the three main importers of Vietnamese cinnamon. — Photo vnbusiness.vn
Việt Nam exported 11,176 tonnes of cinnamon, worth for US$31.1 million in May, up 75 per cent in volume and 63 per cent in value month-on-month.
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 per cent and China by 513.6 per cent.
But over the whole five months the export of cinnamon reached 33,528 tonnes, worth $96.3 million, marking modest decreases of 1.1 per cent and 4.4 per cent compared to last year.
Hoàng Thị Liên, 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.
Việt Nam 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 Việt Nam maximise its tax advantage over other regions.
Currently, Vietnamese unprocessed cinnamon is exported to nearly 100 countries around the world, accounting for 95 per cent of the Indian market's market share, 36.5 per cent of the US market's market share, and 35 per cent of the European market's market share.
However, the export rate of processed cinnamon is only 18.6 per cent, or 18,659 tonnes, of which 70 per cent is exported to the US and 12 per cent 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 Việt Nam into the leading sustainable cinnamon supplier in the world.— VNS