Bắc Hà District in Vietnam’s Lào Cai province has long been a hub for cinnamon cultivation, but 2024 marked a milestone with the industry generating nearly 257 billion VND (approx. $10.5 million USD). This represents an increase of over 40 billion VND compared to 2023. Key contributors to this growth include expanding cultivation areas, organic certifications, and steady market demand.
Current State of Cinnamon Cultivation
The district has a total of 10,422 hectares of cinnamon plantations, categorized as follows:
- Over 10 years old: 1,270 hectares
- 5–10 years old: 3,806 hectares
- Under 5 years old: 5,000 hectares
Among these, 2,247 hectares are organically certified, predominantly in Nậm Đét, Nậm Lúc, and Bản Cái communes. This certification has increased the marketability of Bắc Hà cinnamon, allowing farmers to sell at premium prices.
In 2024, the district harvested 18,330 tons of cinnamon, generating nearly 257 billion VND. The value came from various products: bark, leaves, branches, seeds, saplings, and essential oils. Key market prices included:
- Dry cinnamon bark: 35,000–50,000 VND/kg
- Four-slit cinnamon: 80,000–110,000 VND/kg
- Cinnamon wood: 900,000–1,300,000 VND/m³
- Cinnamon essential oil: 300,000–380,000 VND/kg
Socioeconomic Impact
Cinnamon farming has become a lifeline for many households, contributing to poverty alleviation and economic stability. It has also empowered communities to recover from natural disasters, such as the aftermath of Typhoon No. 3. Beyond income, cinnamon cultivation has fostered cooperative development and rural modernization, further solidifying its role in Bắc Hà’s agricultural economy.
Vision for 2025
Looking ahead, Bắc Hà aims to expand its cinnamon-growing area to 11,025 hectares by 2025. A particular focus is on increasing the organic-certified area to over 2,700 hectares, ensuring sustainability and enhancing product quality. Additionally, the district plans to attract investment in deep-processing facilities, enabling higher-value cinnamon products and building a national brand.
Bắc Hà’s cinnamon industry showcases how strategic planning, organic certification, and stable market dynamics can transform agriculture into a lucrative and sustainable enterprise. With ambitious expansion goals and continued support for value-added processing, Bắc Hà is poised to lead Vietnam’s cinnamon market in both domestic and international arenas.
