Economics

Cinnamon is an agricultural product with multi-layered value chains: bark for spices/beverages; essential oil for food – pharmaceutical – cosmetic; cinnamon powder for processing; by-product wood for handicrafts and biomass.

Consumption markets range from India, the Middle East to North America – Europe;

the increasing trend of “natural ingredients/clean label” gives cinnamon products a strong position. In Phu Tho – Tuyen Quang, the cinnamon cluster model (growing area – preliminary processing – drying/packaging – essential oil) optimizes logistics, quality control, opening pathways into retail/tourism/OCOP.

Geographic positioning “Cinnamon of Phu Tho – Tuyen Quang” and traceability help elevate value, selling not just raw materials but the story of the growing region.

Ecology

Cinnamon trees suit low hill – midland terrain; canopy cover helps reduce erosion and retain soil moisture; fallen leaves create humus to improve fertility.

Cinnamon trees are organized under an agroforestry model with native tree strips and contour lines to stabilize terrain, supplementing buffer zones along streams to retain water and limit runoff.

The cinnamon area contributes to increasing biomass and biocarbon stock for the region.

Social Significance

Seasonal employment chain: planting, harvesting bark, essential oil distillation, drying – packaging; mobilizing local labor, especially women’s groups.

Allocating revenue to establish a “green scholarship fund” supporting books, uniforms, bicycles for students; organizing environmental education classes in the cinnamon village.

Cinnamon villages can offer tours experiencing harvesting – drying cinnamon, selling local products, increasing ancillary income and community pride.