In 2022, Vietnamese cassia accounted for 18.2% of output but 34.4% of global cassia export market share. Vietnam’s cassia exports rank number one in the world, with a turnover of more than $292 million.
In addition, Vietnam is also the world’s leading cassia producer. With an area of 180,000 hectares, Vietnamese cassia is mainly planted in the Northern mountainous region and North Central region.
Cassia exports from Vietnam
By the end of October 2023, Vietnam exported 74,744 tons of cassia, up 19.2% in volume. However, the export value only reached $220.3 million, down 1.3% in value compared to the same period last year. The average export price of cassia was worth at $2,948/ton, down 17.2% compared to the same period in 2022. The main market of Vietnam’s cassia exports is India, which accounts for 43.9% of the market share.
Many localities identify cassia as one of the non-timber forest products with high economic value. Cassia trees are currently the livelihood of hundreds of thousands of ethnic minority households in remote provinces. Also, cassia trees contribute to the socio-economic development of these localities.
Long stick cassia from Vietnam
Cassia is a product with great export potential. However, Vietnamese cassia products are also affected by the trend of green consumption and reducing emissions. These products must have origin traceability, ensure quality and especially pesticide residues. For example, the US, Japan, South Korea, and European countries, which strictly controls the use of pesticides.
Although leading the world in cassia exports, Vietnam does not have a strategic orientation for sustainable development at the national level. In addition, Vietnam lacks a mechanism to conduct research to promptly respond to market demands.
The quality of seedlings is still open and there is no research on original varieties. This is also the main reason why Vietnam’s cassia output is still much lower than the world’s cassia yield, especially China.
A cassia factory in Vietnam
In addition, there are no leading organizations that act as focal points to connect organizations together. Such leading organizations will link packing houses, exporting enterprises, and growers.
Although Vietnam has more than 600 companies operating in the spice sector, but they mainly do in trading business. Moreover, there are no supply chains that work effectively. Especially, there are no processing cooperatives that to connect with exporting businesses of cassia.
Vietnamese source: https://baotintuc.vn/kinh-te/viet-nam-xuat-khau-que-dung-dau-the-gioi-20231115113707521.html