Vietnam overtakes Thailand in China’s cassava starch market as Laos gains ground

Vietnam takes the lead in China

Vietnam accounted for about 48.84% of China’s cassava starch imports in 2025, overtaking Thailand to become the market’s largest supplier, according to market research cited by Dan Viet. China is the world’s biggest importer of cassava starch, making access to its buyers a central measure of competitiveness for Southeast Asian producers and processors.

Geography is a major part of Vietnam’s advantage. Its land border and direct crossings into southern China allow cargo to reach consumption centres in about 10 days, roughly half the time required on many routes from Thailand, where most cassava starch is shipped by sea. Shorter delivery times give Chinese buyers greater flexibility and reduce their inventory costs. Vietnam also benefits from access to Cambodian raw material and from commercial relationships built with Chinese customers over many years.

Trade is large, but Thailand remains stronger in scale

China consumed about 3.76 million tonnes of Vietnamese cassava and cassava products in 2025, generating trade worth $1.17 billion, Dan Viet reported. Those figures show how closely Vietnam’s cassava sector is tied to one destination. This concentration strengthens the case for reliable border logistics, but it also leaves processors exposed to changes in Chinese demand, purchasing standards and delivery requirements.

Thailand remains a formidable competitor despite losing the leading share in China. Its exports of cassava products were worth about $2.5 billion in 2025, nearly twice the size of Vietnam’s cassava exports. Thailand previously displaced Vietnam as China’s largest cassava starch supplier in 2014, 2018, 2021 and 2022. Its share reached 52.8% in 2021, showing that leadership in the market can shift rapidly.

Quality and processing reshape the competition

Thai suppliers retain an advantage in consistent quality and higher-value processing. Dan Viet said some international customers had moved from Vietnamese starch to Thai products because of greater uniformity. Companies including Thai Wah, SMS, Siam Starch and Ubon Sunflower have developed modified starch for food, pharmaceuticals, paper, textiles, plastics and other industries. SMS alone offers hundreds of modified starch varieties serving almost 30 manufacturing sectors, while most Vietnamese companies remain focused on conventional cassava starch or are only beginning to enter the modified segment.

Laos is adding a third dimension to the contest. The China-Laos railway is integrating the country more deeply into China’s supply chain, while an import and distribution centre for Lao cassava starch has opened in Neijiang, Sichuan. Initial imports are expected to reach about 50,000 tonnes a year, with output value exceeding 500 million yuan. Chinese companies are also investing in Lao plantations and processing plants; one has developed a 6,000-hectare cultivation area, while Sichuan groups are expanding by several thousand additional hectares. Market research cited by Dan Viet indicates that Lao cassava starch exports rose by more than 30% in 2025. Vietnam’s delivery advantage therefore remains valuable, but maintaining leadership will increasingly depend on consistent quality, processing technology and tighter control of the raw-material supply chain.