Promote the export of cinnamon, anise and medicinal plant products

Attending the conference were delegates from agencies under the Ministry of Industry and Trade, Trade Offices, Vietnam Trade Office Branches, Vietnam Trade Promotion Offices abroad, Department of Industry and Trade, Department of Agriculture and Development Rural areas, industry associations, businesses and news and press agencies register to attend.

The conference took place in a combination of live and online methods, to create favorable conditions for a large number of delegates from overseas Vietnamese Trade Offices, relevant agencies and businesses from 63 provinces and cities nationwide. participating country.

Many potentials and advantages

Speaking at the conference, Mr. Vu Ba Phu – Director of the Department of Trade Promotion – said that on the world map of medicinal herbs, Vietnam is considered to have diverse sources of medicinal herbs; The ratio of rare natural medicinal herbs is still quite abundant. According to statistics, our country currently has over 5,100 species of medicinal plants. With this medicinal source, Vietnam has many potentials and advantages to develop medicinal herbs into an economic industry. As for cinnamon, the cinnamon area in Vietnam currently reaches about 150,000 hectares, accounting for 17% of the global cinnamon area. Currently, Vietnam is the world’s third largest producer and exporter of cinnamon in terms of output, after Indonesia and China. Anise is a native plant that very few countries possess, the majority being Vietnam and China.

Items and products from cinnamon, anise and medicinal plants are increasingly receiving attention and expanding export markets due to changes in consumer awareness, opinions and tastes towards green lifestyles, clean, good for health and helps increase immunity. Besides, it can be mentioned that there is a strong development of the pharmaceutical manufacturing industry, functional foods, food processing, cosmetics, and pharmaceutical products globally and is widely used in cuisine in Vietnam. many country.

Currently, Vietnamese cinnamon and anise are strongly consumed in many regions of South Asia (such as India, Bangladesh), the Middle East (UAE, Pakistan), East Asia (Japan, Taiwan – China, Korea), America and countries of the European Union – EU. With the trend of increasing demand for raw materials in the food, cosmetics, pharmaceutical industries… and many free trade agreements being signed, Vietnamese cinnamon and anise products have more motivation and opportunities. develop.

India is the world’s leading consumer of cinnamon and anise products and is also a major producer of medicinal herbs. Currently, Vietnam dominates the Indian market with more than 80% of cinnamon and anise imports. Mr. Bui Trung Thuong – Commercial Counselor, Vietnam Trade Office in India – said that Vietnam is the largest supplier of cinnamon products to this market. In the fiscal year 2022 – 2023 alone, Vietnam exported 32,650 tons of cinnamon, accounting for 85% of India’s cinnamon imports. “Vietnamese cinnamon is popular in India due to its good essential oil content and unique flavor. On the other hand, the advantage to exporting this product to India is thanks to preferential tariffs from the ASEAN – India FTA Agreement. In particular, with a large population, India has a very large market demand for cinnamon, anise, and medicinal herbs” – Mr. Thuong informed.

Or in the United States, cinnamon and anise are potential export products of Vietnam in this market. Do Ngoc Hung – Commercial Counselor, Vietnam Trade Office in the United States, in 2022, Vietnam’s cinnamon export turnover to this country will reach about 50 million USD, accounting for 35% of the US’s total cinnamon import turnover.

“Thanks to good quality and stable quantity, this product is popular in many markets, especially the US market where there is a large population, diverse ethnicities and consumer demand for special products. product, has health value. Cinnamon anise is not only a popular spice, but is also widely used in the food, pharmaceutical and cosmetic industries, and is added to tea, coffee and other drinks” – Mr. Hung emphasized. strongly and added that, in the post-pandemic context, consumers’ top concerns are products that increase resistance and are easy to prepare and use at home. In particular, the demand for cinnamon essential oil is increasing, bringing great potential for Vietnamese cinnamon and anise export businesses.

Another potential cinnamon and anise import market is Pakistan. According to information from Ms. Nguyen Thi Diep Ha – Head of Trade Affairs, Vietnam Trade Office in Pakistan, Pakistan has high demand for cinnamon and medicinal herbs. In 2022, Pakistan imports 7,000 tons of cinnamon, of which Vietnamese cinnamon accounts for more than 4% of the market share. Cinnamon exports from Vietnam to Pakistan increased by more than 200% in 2022 compared to 2021.

Invest in production, deep processing and have appropriate promotion strategies

It can be seen that Vietnam’s export value of cinnamon and anise has continuously increased over the years and in 2022 alone will reach about 276 million USD, but this number is still small compared to the market share of medicinal herbs worldwide. One of the reasons why Vietnamese medicinal herbs account for a very small market share of the total global pharmaceutical market revenue is that the majority of Vietnamese medicinal herbs are exported in the form of raw materials. In addition, strong export products such as cinnamon, anise, cardamom, turmeric, honeycomb… are still fragmented, small-scale, and everyone does their own thing.

Mr. Nguyen The Thinh – Director of the Department of Medicine and Pharmacy Administration (Ministry of Health) – said that Vietnam is a country with diverse sources of medicinal herbs, many precious and rare types. However, this is not a source of goods with high export turnover. The main reason is that there is no planning for the development of medicinal plants in Vietnam, which is spontaneous, especially because specific outputs have not been determined, so destruction still occurs due to lack of consumption.

Faced with the above situation, Mr. Nguyen The Thinh suggested: Ministries and branches coordinate to develop the medicinal plant processing industry, and Vietnamese trade offices abroad support finding output markets for people in growing areas. Businesses should increase participation in international exhibitions to find partners. At the same time, there should be policies to encourage research into projects to research and conserve genetic resources and medicinal plant varieties to build national gardens. Connecting individuals within and outside the country to develop medicinal materials aimed at export. Determine appropriate marketing and promotion strategies. Increase efficiency of transportation and delivery, exchange of information on trade policies, especially new policies.

Yen Bai is the locality with the largest cinnamon area in the country with 86,000 hectares, output reaching 30,000 tons/year, however, according to Mr. Nguyen Dinh Chien – Deputy Director of Yen Bai Department of Industry and Trade, cinnamon export turnover and products Cinnamon products from Yen Bai are very modest, only worth 50-60 million USD. We hope that Vietnam’s overseas business will continue to introduce Yen Bai’s cinnamon to importers around the world, attracting investors to develop the deep processing industry of cinnamon products in Yen Bai province.

Like Yen Bai, Lai Chau is one of the localities with a large cinnamon and anise growing area, with a processing output of 50-60 tons/year. In addition, Lai Chau also has other potential medicinal herbs such as cardamom and amomum. However, Mr. Nguyen Trong Thuc – Deputy Director of the Department of Industry and Trade of Lai Chau province said that production costs, storage and transportation processes are major obstacles for local businesses to promote cinnamon exports. anise and medicinal herbs to the international market.

With current difficulties, Lai Chau province wants the Ministry of Industry and Trade to support the locality in connecting and promoting cinnamon, anise and other medicinal products to foreign markets; Introducing businesses wishing to come to Lai Chau to seek cooperation. Trade agencies regularly provide information about needs and standards from markets for Lai Chau to disseminate to businesses to build appropriate production and business strategies to meet market requirements.

Also at the conference, representatives of Vietnam Trade Departments and Trade Promotion Offices in the United States, India, China, Pakistan, Hong Kong (China), Taipei (China) – potential markets and there is significant demand for cinnamon, anise, and medicinal plant products. Updated information on the market situation; Some regulations, standards, and market conditions may impact Vietnam’s import and export activities of cinnamon, anise, and medicinal plants; At the same time, make recommendations for localities, associations and import-export businesses. Accordingly, businesses need to boldly develop the market, proactively learn and research market tastes and needs; investment in production and deep processing.

Mr. Do Ngoc Hung said that in order to expand cinnamon market share, in Vietnam in the United States, businesses need FDA certification. Regarding production, domestic businesses and localities need to ensure sustainable raw material sources, build production chains to improve productivity and product quality, and increase processing of refined products. “In addition, promote Vietnamese cinnamon and anise products in the media; Participate in major specialized fairs in the United States and countries around the world…” – Mr. Do Ngoc Hung recommended.

Similarly in the Pakistani market, Ms. Nguyen Thi Diep Ha also said that Pakistan imports cinnamon mainly as a spice, so it prefers thin-skinned cinnamon with low essential oils. Cinnamon imported into Pakistan requires a plant quarantine certificate, Halal certificate, and processed products must have a food hygiene and safety certificate. Along with cinnamon, Vietnamese anise accounts for 1% of the market share and cardamom accounts for 5.8% of the market share in Pakistan. This country imports anise and cardamom mainly as spices, so it prefers low-cost, low-essential oil varieties and requires certification similar to cinnamon and cinnamon products.

In addition, Ms. Nguyen Thi Diep Ha also noted that domestic agencies encourage the development of growing areas with these plants to maintain stable supply output; Establish industry associations and branches in localities to avoid price pressure.

In the coming time, to increase opportunities and create conditions to promote the export of Vietnamese cinnamon, anise and medicinal plant products to the international market, Mr. Vu Ba Phu has raised 5 groups of issues that need to be resolved, including are: Promoting product research and development activities, preserving genes and rare varieties of medicinal herbs; human resource training; promote joint ventures and partnerships, develop export markets; building brands for products and the Vietnamese pharmaceutical industry; developing logistics services; Planning large raw material areas to create commercial output large enough to serve export.

“The Ministry of Industry and Trade will strengthen coordination and promptly grasp the production and export situation of local products; Maintain close connection with the Ministry of Health, create links with Vietnamese medicinal farming and processing enterprises. At the same time, it is recommended that the Vietnamese Trade Offices pay attention, support, and provide information on market needs, regulations, and requirements for cinnamon, anise, and medicinal plants to access and develop export markets and spices. increase brand value in the world market” – Mr. Vu Ba Phu emphasized.

Author: Phương Anh