Cinnamon lined up on the spice shelf. Did you know its growing area is Vietnam?
In fact, Vietnam is a major producer, accounting for about 30–35% of the world's cinnamon exports. It is shipped worldwide for a wide range of uses—food, beverages, pharmaceuticals and more—but this reality is not well known within Japan.
This article explains in detail the growing areas, quality grades and world-market position of Vietnamese cinnamon, as well as its relationship with Japan. It is useful content for importers and food buyers too.
What Vietnamese cinnamon is—the home of the "cassia" type
There are several varieties of cinnamon. Sri Lanka's "Ceylon cinnamon (true cinnamon)" is famous, but what is produced in Vietnam is classified as "cassia": Saigon cinnamon (scientific name: Cinnamomum loureiroi) of organic jasmine rice.
Saigon cinnamon is known, even within the cassia group, as a variety with an especially strong aroma and the highest content of the essential-oil component (cinnamaldehyde). Its content level is as high as 90% or more, levels it can sometimes reach.
Because its flavor as a spice is strong, it is preferred for a wide range of uses—sweets, curry, traditional Chinese medicine and more.
| Variety | Main origins | Characteristics |
|---|---|---|
| Ceylon cinnamon | Sri Lanka and Madagascar | Delicate aroma, lower essential-oil content |
| Saigon cinnamon | Vietnam | Strong aroma and pungency, high essential-oil content |
| Cassia (Chinese cinnamon bark) | China | General-purpose, cheaper in price |
| Indonesian cinnamon | Indonesia | A flavor close to cassia |
The two major growing areas: Yen Bai province and Quang Nam province
Vietnam's cinnamon production is largely concentrated in two areas, the north and the center.
Yen Bai province (Yên Bái)—the leading growing area in the northern mountains
Located about 180 km west of the capital Hanoi, Yen Bai province is Vietnam's largest cinnamon-growing area. Centered on Van Yen (Văn Yên) district, more than about 40,000 hectares of planted area is said to exist.
The climate characteristic of mountainous zones—high annual rainfall and a cool, often-foggy environment—suits the generation of cinnamon's aromatic components. It is also a traditional form of agriculture passed down over generations by local ethnic minorities (such as the Dao people).
Quang Nam province (Quảng Nam)—a central growing area next to a World Heritage site
Quang Nam province in the center is also one of the important growing areas. Cinnamon produced in the Tra My (Trà My) district in particular is high in quality and has established itself as a regional brand.
The province, home to the UNESCO World Heritage site Hoi An, is also known for tourism, but in the inland mountains cinnamon cultivation has taken root since ancient times.
Quality grades—the classification criteria at the export site
Vietnamese cinnamon is traded classified into several grades by use and quality. The main evaluation criteria are bark thickness, color, essential-oil content and moisture content.
| Grade | Shape | Main use |
|---|---|---|
| AA / Special | Thick bark, uniform color | Premium spice, extract extraction |
| A | Standard thickness | Food processing, commercial spice |
| B / C | Thinner, with cracks | For powder processing, feed additive |
| Broken | Offcuts and broken pieces | Essential oil extraction |
| Powder | Powdered | Food, confectionery, seasoning |
As a raw material for extracting essential oil, even lower-grade parts hold high value. Because the price gap between grades is large, checking the specification sheet at import time is important.
Position in the world market—export volume and major destinations
According to data from the Food and Agriculture Organization of the United Nations (FAO), Vietnam's cinnamon exports have in recent years been around 40,000–50,000 tonnes a year and it ranks, alongside Indonesia, among the world's top-class exporters.
The main export destinations are as follows.
| Export destinations | Main use |
|---|---|
| The United States | Spice retail and food processing |
| India | Traditional Chinese medicine and spice processing |
| Bangladesh | Food and beverages |
| Japan | Confectionery, pharmaceuticals, food processing |
| EU countries | Organic food, extracts |
In recent years, demand for products with organic certification (USDA, EU) has been rising, and a shift toward value-added exports is also progressing.
The relationship with the Japanese market—import trends and points to watch
In Japan, cinnamon is widely used as a spice in sweets, bread and curry, and also plays an important role as a raw material for traditional Chinese medicine (cinnamon bark, keihi).
Chinese and Sri Lankan products were once the mainstream, but Vietnamese cinnamon, with its price competitiveness and high essential-oil content as its weapons, is raising its presence. The adoption of Vietnamese products is increasing especially in commercial procurement by food manufacturers and pharmaceutical companies.
As a point of caution, cassia-type cinnamon contains a large amount of a component called coumarin. The EU has set a standard for the maximum intake, so when importing for health-food or supplement use, component analysis and a check of the regulations are required. In Japan, no specific upper limit under the Food Sanitation Act has been set at present, but depending on the use we recommend checking in advance.
Local challenges and the outlook ahead
Vietnam's cinnamon industry keeps growing, but it also faces several challenges.
Challenge 1: Variation in quality
There are many small farmers, and quality differences easily arise in the harvesting, drying and storage steps. Standardization of quality control by the government and private companies is being advanced.
Challenge 2: Price-volatility risk
Because of fluctuations in weather and harvest volume, prices sometimes vary by 20–30% from year to year. Price stabilization through long-term contracts is called for.
Challenge 3: Sustainability
Over-harvesting accompanying rising demand has become a problem in some areas. A shift to sustainable forestry, such as FSC (Forest Stewardship Council) certification, is a challenge.
On the other hand, with rising demand for specialty spices, the expansion of the essential-oil market, and the use of the geographical indication (GI) protection system, there is large room for raising added value.
Summary
Vietnamese cinnamon (Saigon cinnamon) is a spice crop that holds an important position in the world market.
- Yen Bai province and Quang Nam province are the two major growing areas
- High essential-oil content, and high quality even among the cassia group
- Annual exports are on the scale of 40,000–50,000 tonnes, with the United States, Japan and India as the main markets
- Because use and price differ by quality grade, checking the import specifications is important
For those considering sourcing Vietnamese raw material in the food, pharmaceutical and spice industries, understanding the growing area and grade is the first step in doing business.
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