Đà Nẵng City: Adding value to Saigon cinnamon exports beyond raw exports

Saigon cinnamon exports

Being proud for their high essential oil, Saigon cinnamon exports have yet to fully realize their economic potential. This is due to fragmented production, limited processing capacity, and a disconnected value chain. To unlock their full potential, the industry needs to develop a more integrated and sustainable multi-value ecosystem. This will enhance product quality, processing, and market value of Vietnamese cinnamon.

At the seminar “The Trà My Cinnamon Journey – From Historical Value to Sustainable Development,” experts acknowledged that the region currently has only about 3,000 hectares of cinnamon. This is equivalent to just 30% of its 2030 target of 10,000 hectares, including 7,500 hectares of production forests and 2,500 hectares of new plantations.

Although several products—such as cinnamon essential oil, cinnamon powder, and handicrafts—have earned OCOP certification, the value chain has yet to match the crop’s potential. Production remains fragmented and small-scale, putting the unique characteristics of Trà My cinnamon at increasing risk. Meanwhile, deep-processing capacity, logistics infrastructure, and market linkages remain underdeveloped.

Vũ Thị Bích Hậu is the Deputy Director of the Đà Nẵng Department of Agriculture and Environment. She noted that for many years Saigon cinnamon exports have primarily been a high-value forestry crop. However, under current circumstances, she argued that it should be recognized from a broader perspective. It should be valued as an endemic biological resource and a valuable medicinal plant. At the same time, it should also be recognized as a cultural and ecological asset of the region.

Saigon cinnamon exports

Saigon cinnamon exports

According to Ms. Hậu, Trà My Saigon cinnamon exports should be developed within a comprehensive cinnamon economy. Rather than focusing solely on raw material production or individual products, this approach would create greater long-term value. This approach would foster a multi-value ecosystem encompassing improved varieties, production areas, processing, branding, cultural heritage, tourism, and community livelihoods.

Nguyễn Thế Phước is the Secretary of the Party Committee of Trà Leng Commune. He said that Trà My cinnamon, particularly that grown in Trà Leng, represents a unique heritage region of Vietnam’s Central Highlands and Central Coast. For centuries, cinnamon has been more than a valuable forest product. It has become an integral part of the cultural identity, spiritual life, and history of local ethnic communities, preserving rich indigenous knowledge and traditions.

Saigon cinnamon exports features prominently in traditional festivals, wedding customs, folk medicine, and stories passed down through generations. Nevertheless, the industry continues to face significant challenges, including fragmented production and weak value chain linkages. In addition, processing technology remains limited, product diversification is insufficient, and branding efforts have yet to reflect its true potential.

In addition to production constraints, cooperatives engaged in Vietnamese cinnamon cultivation continue to face difficulties in securing stable markets because of the lack of sustainable commercial partnerships. Explaining this situation, Nguyễn Thị Kim Hoa, a representative of the Trà My Minh Phúc Cooperative, said that the cooperative has established retail distribution channels in many provinces and cities across Vietnam.

It achieved this through trade fairs, business networking events, and supply-demand matching programs. However, its market outlets remain unstable, and its products have yet to reach international export markets.

Saigon broken cinnamon

Saigon broken cinnamon

To overcome market access challenges, the People’s Committee of Trà Leng Commune has signed a strategic cooperation agreement with the Đà Nẵng Hotel Association. It has also partnered with the University of Science and Education – The University of Đà Nẵng and Furama Resort Đà Nẵng. Under this tripartite partnership model, the parties will work together to develop cinnamon-growing areas and provide cultivation and processing support.

They will also strengthen branding, train local workers, and expand market access through tourism services. Demonstrating the association’s commitment, Nguyễn Đức Quỳnh, Chairman of the Đà Nẵng Hotel Association, said the organization hopes to collaborate with the people of Trà Leng, the University of Science and Education, and businesses. Through this partnership, it aims to promote the sustainable development and commercial value of Saigon cinnamon exports.

Together, they will introduce Trà My cinnamon and other local specialties to both domestic and international visitors. The initiative aims to enhance the value of local gifts and agricultural products while promoting cultural and heritage tourism. It will also contribute to regional socio-economic and tourism development.

Dr. Võ Văn Minh is the Rector of the University of Science and Education, The University of Đà Nẵng. He noted that the value of Trà My cinnamon remains fragmented. Most products are still sold as raw materials, and indigenous knowledge has yet to be systematically documented. In addition, scientific research and technology have not been fully applied. As a result, local communities have not received the full economic benefits generated by the crop.

According to Dr. Minh, elevating Trà My cinnamon requires building a new development ecosystem. In this ecosystem, local communities preserve forests, genetic resources, and cultural heritage. Meanwhile, Saigon cinnamon businesses invest in processing and market development, while government authorities establish supportive policies and protect the ecological landscape. Universities and researchers also generate knowledge, technological innovation, and higher value-added products.

Saigon whole cinnamon

Saigon whole cinnamon

Professor Dr. Trịnh Đăng Mậu is also from the University of Science and Education, The University of Đà Nẵng. He argued that cinnamon’s value once lay primarily in its bark. However, its future value must come from the knowledge and technology embedded in its products. He emphasized that Trà My cinnamon should move beyond exporting raw materials or cinnamon sticks. Instead, it should expand deep processing into products such as essential oils, natural cosmetics, herbal teas, health-care products, and locally inspired gifts.

He also stressed the importance of accelerating the digital transformation of Saigon cinnamon exports. This includes developing digital databases for production areas, GIS mapping, QR codes, blockchain-based traceability systems, and digital quality management platforms. These measures would improve product transparency. They would also significantly strengthen the competitiveness of Saigon cinnamon exports in international markets.

Vietnamese source: https://thuonghieusanpham.vn/que-tra-my-thoat-vong-luan-quan-nguyen-lieu-tho-ra-sao

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