SUSTAINABLE CASSIA DEVELOPMENT IN VIETNAM

SUSTAINABLE CASSIA DEVELOPMENT IN VIETNAM

1. Cassia Development in Vietnam

With an area of approximately 180,000 hectares, mainly in the northern mountainous provinces, in 2023, Vietnam exported over 89,000 tons of cassia products, worth over 260 million USD, becoming the world's leading cassia-producing country. Cassia has become a high-value forestry tree, helping people in many localities to escape poverty and become rich.

Yen Bai is the province with the largest cassia planting area in Vietnam with over 80,000 hectares. Every year, the output of cassia bark exploited is about 18,000 tons; cassia branches and leaves are over 85,000 tons; cassia wood (harvested after exploitation) is 200,000 m3. Cassia has become the main forestry tree of the province, making an important contribution to the economic structure and helping to improve the environment and mitigate natural disasters.

2. Difficulties facing Vietnam's cassia industry

Along with its strong development, the cassia industry also faces several difficulties and challenges that need solutions to be overcome and developed sustainably.

Cassia products from Vietnam have been exported to 30 countries around the world; demand is still large and stable. Markets such as the US, Canada, Europe, and India have a high demand but require high-quality standards, so there needs to be a fundamental change in the production and processing of cassia, focusing on deep processing and refining to bring about high-value products. The government needs to issue a specific plan for cassia growing areas with geographical indications and clear origin; and create conditions for land and infrastructure to plan the production and processing of cassia products with standards, quality, and environmental sanitation. Cassia is developing rapidly in some localities such as Lao Cai and Yen Bai.

3. Proposed solutions

To support people, local governments have fully implemented economic development policies from forests; guide people to produce safely and sustainably, and develop organic cassia areas with product traceability.

Solutions to link cassia production to the value chain from production, exploitation, processing and consumption of products. Expand and promote the effectiveness of existing value chain linkage projects, and at the same time build new value chain linkage projects. Vietnam is also planning cassia bark, cassia wood and cassia essential oil processing facilities in a sustainable direction, towards applying good processing technologies and quality management processes to improve the quality and value of cassia products.

4. Role and responsibility of Techvina

As the leading company in Vietnam with 15 years of experience in producing high-value cassia essential oil and aroma chemicals, exporting to 25 countries on the world, Techvina understands our role and responsibility in developing the cassia industry.

Techvina has a good grasp of market information, creates consumption links and supports cassia growers in cooperatives on the cassia production process according to Organic standards.

With farmers, based on information from the market, customers and international regulations on cassia essential oil products, Techvina cooperates with local authorities to organize training with farmers on planting techniques, regulations on the use of pesticides, distillation and effective essential oil preservation.

With cassia essential oil factories, developing along the value chain is a top priority. Building close relationships, ensuring output for factories based on annual framework contracts. At the same time, guide factories to apply production according to international standards that Techvina is applying, which is FSSC 22000 and periodic audit.

With local authorities, Techvina provide accurate data information to build development policies for cassia trees in the locality in a sustainable direction, especially for high-quality organic cassia growing areas. Participate in seminars and discussions to contribute to perfecting the institutional, policy, and special mechanisms for cassia products.