Vietnam Basil Oil’s First Harvest 2025 and Second Half Outlook

1. INTRODUCTION TO VIETNAM BASIL OIL

Vietnam Basil oil, specifically Ocimum basilicum L., is known for containing over 85% Methyl Chavicol. This annual plant is primarily grown for essential oil distillation and prefers slightly moist soil, often found along river banks. The traditional growing areas include the Red River Delta provinces such as Hanoi, Hung Yen and Ha Nam. Basil seeds are typically sown in February, with young plants ready for planting in March. The annual crop for Basil oil generally runs from June to September, with plants harvested 3 times if conditions are favorable.

Vietnam Basil oil, specifically Ocimum basilicum L., is known for containing over 85% Methyl Chavicol

Before the COVID-19 pandemic, basil cultivation was concentrated along the Red River’s bank in northern provinces like Hanoi, Hung Yen and Ha Nam. However, rapid urbanization in these areas led to a significant shrinkage in basil growing areas, as farmers pursued more opportunities in alternative crops like bananas or non-agricultural jobs. This shift, combined with competition among trading companies, caused basil prices to decrease, leading farmers to stop growing it.

2. FROM PRE-PANDEMIC SHIFTS TO POST-COVID REVIVAL

The onset of the COVID-19 pandemic in 2020 introduced new market dynamics, with clients, particularly distributors, accumulating more stock due to fears of supply chain disruptions. This heightened demand, coupled with limited supply, caused a record price surge in 2022, tripling the price of basil oil. This unexpected price increase attracted farmers and new exporters back into the basil market. However, the market is now seeing a correction.

3. CULTIVATION AND SUPPLY CHAIN CHALLENGES

4. ADDRESSING THE DEHP CHALLENGE: TECHVINA’S PROACTIVE QUALITY ASSURANCE

5. CONCLUSION AND OPPORTUNITY

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