Agarwood containers stuck at border gates

For many years, Vietnam has been considered one of the major production and processing hubs for agarwood in Asia. Agarwood-based products such as essential oil, incense, cosmetic ingredients, medicinal materials, and handicrafts have been present in many major markets including China, Japan, the UAE, India, and Europe...

However, since the end of 2025, many businesses have reported that export documentation is being subjected to stricter scrutiny due to issues related to the scientific identification of the species Aquilaria crassna – the agarwood-producing tree species commonly grown in Vietnam.

Speaking with VOV reporters, Mr. Pham Minh Tam – Director of Tram Thanh Tam TTA Joint Stock Company, stated that the business recently experienced a serious incident when a shipment exported to the East Asian market was requested by the partner to be put on hold to provide additional documentation proving the species identification.

“The partner requested an explanation because some international documents do not clearly reflect Aquilaria crassna as an independent identifier. They were concerned about legal risks related to CITES, so they temporarily suspended customs clearance. The container sat at the port for weeks, causing the business to incur hundreds of millions of VND in additional storage and yard costs,” Mr. Tam said.

According to Mr. Tam, the worrying part is that many foreign partners are currently applying an “absolute risk management” mechanism; if there is any inconsistency between the scientific name in the permit and the international database, the goods may be held back.

“Some partners even requested that we provide DNA results, international research documents, and additional confirmation from specialized management agencies. These are procedures that go far beyond standard commercial practices,” Mr. Tam shared.

It is not just large enterprises facing difficulties; many small and medium-sized production facilities are also falling into a passive position.

Ms. Nguyen Thi Thu – Director of Vietnam Agarwood Production Co., Ltd. (AGARVINA), said that her business once had a shipment of agarwood raw materials worth billions of VND returned by a Middle Eastern customer because the importing agency requested additional explanations regarding the scientific name.

“The partner said they did not dare to accept the goods when the scientific name verification system triggered an alert. Just one technical issue, but the business has to suffer huge consequences. The goods were returned, transportation costs skyrocketed, and our reputation with customers was also heavily affected,” Ms. Thu said.

According to Ms. Thu, what worries businesses most is the risk of losing long-term markets.

“The Vietnamese agarwood industry has spent decades building its brand. But if importing countries do not have a full or synchronized understanding of species identification, Vietnamese businesses will be at a great disadvantage in international competition,” Ms. Thu assessed.

The “loophole” in the international identification story

According to the reporter's research, many species in the Aquilaria genus such as A. crassna, A. malaccensis, A. sinensis, or A. agallocha have overlapping distribution areas and have previously been the subject of many scientific debates regarding synonyms or biological similarities.

In the CITES international convention catalog system, the name Aquilaria agallocha is currently used with references related to Aquilaria malaccensis. Meanwhile, Aquilaria crassna – the common agarwood species in Vietnam – has not been fully and clearly represented in some international data systems.

An expert in the field of genetic resource conservation stated that this is not merely an academic story but has become a practical trade barrier.

“When countries build import regulations based on international databases, if the species name is not synchronized, the management system will trigger an alert. This leads to the risk of businesses being required to provide additional documentation, undergo in-depth inspections, or even face import refusal,” the expert analyzed.

Many opinions suggest that the root cause stems from the historical context when Vietnam was not deeply involved in international scientific mechanisms related to CITES in the past, leading to the fact that the updating and protection of the identification of Vietnamese agarwood genetic resources have not been fully implemented.

Vietnam Agarwood Association speaks up to support businesses

Faced with the wave of feedback from businesses, the Vietnam Agarwood Association has issued a document informing members about the issues related to the identification of Aquilaria crassna and proposing many support solutions.

Speaking with VOV, Mr. Nguyen Duc Hoa – Chairman of the Vietnam Agarwood Association, said this is a complex issue involving science, international law, and cross-border commercial activities simultaneously.

“Currently, adding or adjusting identifiers in the international system cannot be done immediately because it must go through a very strict scientific process and procedure. However, the Association will accompany businesses to protect the legitimate rights of the Vietnamese agarwood industry,” Mr. Hoa said.

According to Mr. Hoa, the Association is coordinating with the CITES Management Authority of Vietnam to compile all cases of trade congestion, thereby recommending that relevant ministries such as the Ministry of Agriculture and Rural Development, the Ministry of Health, and diplomatic agencies assist in working with importing countries.

“We recommend that businesses keep full records of rejected shipments, requests for explanations, or warnings from partners. This will be a very important basis for Vietnamese management agencies to work officially with importing countries,” Mr. Hoa emphasized.

In addition, the Association also recommends that businesses proactively coordinate with their importing partners to request specialized agencies in the host country to provide guidance or appropriate confirmation.

“There have been businesses that successfully handled this in the Chinese market. This shows that if there is good coordination between businesses on both sides and management agencies, many obstacles can still be resolved,” Mr. Hoa said.

The race to protect the Vietnamese agarwood brand

According to experts, the story of Aquilaria crassna is not just an immediate difficulty for a few businesses but reflects a larger problem regarding the protection of indigenous resources, building national scientific data, and raising the position of the Vietnamese brand in the international market.

Currently, some DNA studies in Vietnamese raw material areas show biological similarities with Aquilaria malaccensis. However, experts say that the use of these results needs to be very cautious and must fully comply with international legal regulations.

“If there is no methodical strategy for standardizing genetic resource data, traceability, and building international scientific dossiers soon, the Vietnamese agarwood industry may continue to face many commercial risks in the future,” an expert warned.

In the context of global agarwood consumption demand continuing to rise sharply, many businesses hope that authorities will soon have an inter-agency coordination mechanism to remove technical barriers, while building a long-term strategy to affirm the legal, transparent, and sustainable position of Vietnamese agarwood in the international market.

“We are not just exporting a commercial product, but also bringing the brand, culture, and indigenous values of Vietnam to the world. If we cannot protect our own scientific identification, Vietnamese businesses will always be in a weak position,” Mr. Pham Minh Tam worriedly shared.