Economic value of agarwood

Market and price:

Natural Agarwood is very rare and its value has been affirmed for more than two thousand years.Vietnam is loved by the world because of its high quality, so its price is very expensive compared to Agarwood. Huong is from India, Indonesia and Singapore. Tram Huong is increasingly scarce, so prices have kept increasing over the past few decades. In recent years, Tram Huong Vietnam is no longer available for export.

In the period 1975-1985, natural Tram Huong exported about USD 10-15 million / year, the growth rate was about 5-10 tons / year.

According to Luong Van Tien (1992), in the period 1988-1990, Vietnam's forestry sector exploited period with the following output:

+1986: 78.5 tons
+1987: 81, 5 tons
+1988: 45.5 tons
+1989, exploiting 36.9 tons
+ 1990 exploiting 20.0 tons of

Vietnamese Agarwood exported in the decade (1980-1990) was not small, the peak in 1987 was considered the golden age of Tram Huong.

The above data shows that there has been a serious decrease in the amount of agarwood exploited in recent years. The output in 1990 was only equal to? of 1986 and 1987 and by? of 1988 and 1989.

In an article by the author HAF published on Tuoi Tre newspaper, on Thursday, November 13, 2003, the title: "Laos economy and opportunities for Vietnamese enterprises" has the conclusion: "The industry of cultivating industrial crops as new as Tram Huong (agarwood in English and kestsana in Lao for aromatic oil) For example, a Vietnamese Lao here, Mr. Thong Philavong, is famous for a 20 acre farm of eucalyptus and frankincense. A tree with a commercial value of $ 600-800 after seven years of growing for its essential oil as a perfume in industrialized countries. "

* According to Saigon Economic Times No. 45-2004 (725) 4-11-2004)

- From 1991 onwards, each year Vietnam exported about US $ 10-15 million of frankincense. Because of its high value, the source of agarwood in the wild was depleted. The current,?? By artificial methods, Vietnamese incense has a chance to return to prosperity.
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One liter of essential oil is worth nearly 1 billion VND.

"A liter of agarwood essential oil costs up to US $ 50,000 (more than 750 million VND), but if there is origin in Vietnam, the price can be up to 1 billion VND because Vietnamese incense is of higher quality than international standards" - Mr. Hoang Van Duoc - General Secretary of the Essential Oils-Flavoring Association -? Vietnamese cosmetics, confirmed so in every conference on agarwood trees with the sponsorship of the Rainforest Rain project (TRP_a non-profit organization based in the Netherlands). With such a price, it can be said that frankincense is a very potential market.

Previously, Agarwood was a product of South Asia, but, about 10 years ago, only Malaysia, Indonesia, Thailand, Myanmar had agarwood and recently the output of frankincense? 432; this estimate is low Probably because the source of exploitation has been almost exhausted. There are only 3 countries that supply frankincense to the world market, namely Vietnam, Laos and Cambodia, of which Vietnamese incense is considered to be of the highest quality. In 1991, Vietnam exported about US $ 10-15 million of agarwood per year. Despite being valued for its quality, Vietnamese frankincense is only exported raw or in the form of fine art furniture, so the value is not high.

Vietnam - a major supplier to the market:

Demand for using frankincense in the world averaged from 250-250 tons / year and this number is constantly increasing. But due to the limited material area, the supply and demand in the world for this luxury product has not been balanced. According to Taiwan data, the situation of importing frankincense from Vietnam of Taiwan (the import market of Vietnamese frankincense, to 1994 increased to 85 tons, in 1995 it was 103 tons and in 1998? To reach 137 tons.

However, after a long time of exploitation, by the late 1990s, Vietnam's sources of agarwood were almost exhausted and in order to protect the national resources, the Government completely banned the exploitation and trading of incense and see it as the national banned goods.

Do trees (some places called wind) are more than 10 years old to be able to create agarwood, trees over 50 years old can only find type 3 agarwood. And type 1 or male trees can only be found on trees hundreds of years old, so From ancient times up to now, agarwood is only exploited in the wild and in many countries, it is almost extinct.

Around 1997 began to appear the "transplant" of chemicals or hard objects into the gourd trees to create agarwood with initial success in Quang Nam and some other provinces, gourd plants began to develop on many farms. According to preliminary calculations, the country currently has 6,000 hectares of planted trees, a few of which are 8 years old enough to be able to cultivate agar-forming yeast. Some gardens in Tien Phuoc, Quang Nam have tried to exploit and the production of frankincense is encouraging, although only agarwood types 4 and 5 have been collected.