Vietnam faces tougher ASEAN competition as China expands cassava logistics
China imported about 1.27 million tonnes of Vietnamese cassava and cassava products worth more than $429 million in the first quarter of 2026. New processing and logistics projects are supporting demand while giving suppliers from Cambodia, Laos and Thailand better access to inland China.
Vietnam remains heavily exposed to Chinese demand
China imported about 1.27 million tonnes of cassava and cassava products from Vietnam in the first quarter of 2026, worth more than $429 million, according to Dân Việt. The shipments represented over 95% of Vietnam’s total cassava export volume, underlining the sector’s dependence on its largest customer.
Chinese demand extends beyond food manufacturing. Cassava starch is used in animal feed, biofuel, chemicals and biomaterials. Domestic cultivation is concentrated in Guangxi, Yunnan, Guangdong and Hainan, but climate, available land and economic returns limit the expansion of large-scale cassava production.
The wider market is also growing. Mordor Intelligence forecasts that the global cassava starch market will rise from about $5.93 billion in 2026 to $8.06 billion in 2031, an average annual growth rate of more than 6%. Asia-Pacific is expected to remain both the largest and fastest-growing region, with China acting as a major demand driver.
Processing centers and transport corridors move inland
China is building infrastructure to secure raw materials and process more cassava domestically. In Huaihua, Hunan province, local authorities are promoting a large cassava starch industrial center intended to support an industry worth about 100 billion yuan. The planned complex could consume as much as 1 million tonnes of cassava starch annually.
Chongqing is developing as another distribution hub. Its cassava starch facilities connect with the New International Land-Sea Trade Corridor, which links western China with ASEAN through railways, roads and seaports. By the end of 2024, more than 120,000 tonnes of cassava starch had moved through the corridor.
The China-Laos Railway can carry Lao cassava starch to Chongqing in about five days. Faster access gives inland processors more procurement options and reduces the geographic advantage previously enjoyed by suppliers closest to China’s traditional border and coastal gateways.
Cambodia and Thailand increase competitive pressure
Chinese state-owned companies are advancing plans to purchase up to 1 million tonnes of cassava in Cambodia while studying investment in local processing plants, Dân Việt reported. China had previously signed a contract to buy 500,000 tonnes of Cambodian dried cassava chips for 2025-2026.
Thailand is also pursuing a larger share of Chinese demand. Thai companies secured prospective orders worth more than $63 million during a 2026 trade promotion program in Chongqing. The country had also negotiated the sale of about 1.68 million tonnes of fresh cassava to China for animal feed production.
Vietnam retains advantages from geographic proximity, established processing capacity and long commercial relationships with Chinese buyers. However, improved regional transport is making competition more direct. Suppliers will increasingly be assessed on consistent quality, traceability, delivery reliability and their ability to fulfill large orders rather than distance alone.
For Vietnamese processors and exporters, the emerging opportunity is therefore tied to supply-chain performance as much as shipment volume. China’s new inland hubs could sustain demand for years, but they will also make it easier for buyers to switch among Vietnamese, Lao, Cambodian and Thai sources. Moving from raw-material sales toward dependable, higher-value supply partnerships will be central to defending Vietnam’s position.
