TECH-VINA AND THE STORY OF THE VIETNAMESE STAR ANISE OIL BUSINESS

Wednesday, 14:25 Date 13/07/2022
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Vietnam is a tropical country with diverse terrain and climate. The vegetation here grows extremely rich. The agricultural economy accounts for 12.79% of the country's GDP (in 2021) and receives many development policies from the state.

Tech-Vina, in a 13-year operation, has affirmed its position and name in the flavor and fragrance industry market. The popular strategy products are Cassia oil and aroma chemicals extracted from cassia oil such as Cinnamic aldehyde, Coumarin, Benzaldehyde, and Cinnamyl acetate. Although certain successes have been achieved, with the first and only mission being to improve the value of Vietnamese agricultural products, the company's leadership has always tried to constantly develop new products, to stabilize livelihoods for more farmers.

Raw materials for making essential oils in Vietnam are many which are high quality and attractive scents and high value. However, farming practices are undeveloped, small, and with low technology. To have a stable chain of high-quality products for customers, Tech-Vina needs to perform a lot of work such as surveying planting areas, farming practices, distillation techniques, packaging, purchasing; assessing the development ability, linking planting areas, distillery areas; technical training to ensure quality; sign contracts purchasing products to create a stable supply chain; development orientation for farmers in the long term…

Since the beginning of 2019, ascertaining that Vietnamese star anise oil is a potential product that can be developed and promoted, Tech-Vina has embarked on researching this product. The implementation process has surveyed many materials growing areas such as Lang Son, Quang Ninh, Ha Giang, Cao Bang, etc. There are areas where star anise is very developed, and many areas of organic star anise for export fruit to the international market. However, the star anise growing area for essential oil production is still quite small and mainly sells oil by border trade to China. Tech-Vina is not easy to enter in this market. In 2020 and 2021, the Covid epidemic originating from China takes place all over the world, this is a difficulty and also an opportunity for Tech-Vina. When countries implemented strict lockdown, the sale of star anise oil through border trade to China was halted, a big of volume star anise oil could not be consumed, and the price of oil dropped. Consuming star anise oil is a hard problem than ever. At this time, no one else, Tech-Vina has stood out to commit to the output products for farmers in the long term, the first place is Bao Lac district, Cao Bang province, Vietnam. From that orienting farmers on sustainable agricultural production, sustainability in quality, volume, and price, under any circumstances, Vietnamese star anise oil can survive and develop.

Star anise oil in Bao Lac, Cao Bang, Vietnam

After completing the necessary processes, in July 2022, Tech-Vina officially started trading star anise oil and made star anise oil be strategic product. It is expected that from 2023, Tech-Vina will provide more Anethole extracted from star anise oil to the world market.

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