Vietnam's spice industry continues to thrive as both cinnamon and pepper exports experience significant growth. In May, cinnamon exports surged by 75% in volume and 63% in value compared to the previous month. The country exported 11,176 tons of cinnamon worth $31.1 million, with India, Bangladesh, and the U.S. being the main export markets. Notably, cinnamon exports to Indonesia increased by 600% and to China by 513.6% in May. However, over the five-month period, cinnamon exports reached 33,528 tons, worth $96.3 million, marking modest decreases of 1.1% and 4.4% from a year ago. The Vietnam Pepper and Spice Association (VPSA) stated that farmers have been improving farming techniques and expanding sustainable raw material areas. Vietnam has dozens of companies investing in modern cinnamon processing lines to meet market requirements. The export rate of processed cinnamon is only 18.6%, with 70% exported to the U.S. and 12% to Europe. Vietnam aims to improve post-harvest processing quality, increase trade promotion activities, and become the leading sustainable cinnamon supplier in the world.
In addition to cinnamon, Vietnam's pepper industry has also seen positive growth. Despite a 2.2% decline in export volume, pepper export earnings surged by 40.8% to $764.2 million in the first seven months of 2024. This growth was driven by rising global pepper prices. The United States remained the top importer, purchasing 43,349 tonnes of Vietnamese pepper, a 48.4% increase from the previous year. Germany, the UAE, India, and China were also major importers. To maintain growth, the Vietnam Pepper and Spice Association recommends stabilizing cultivation areas, enhancing product quality, diversifying processed products, adopting international standards, and leveraging digital technology.
Vietnam's spice industry is thriving, with both cinnamon and pepper exports experiencing significant growth. The country's efforts to improve farming techniques and expand sustainable raw material areas have contributed to the success of the industry. With rising global pepper prices and a focus on enhancing product quality, Vietnam aims to maintain its position as a leading supplier of spices in the world.