The “Standardization Gap” in agarwood essential oil: When export advantages are eroded by a lack of standardization

VOV.VN – Possessing rare natural raw materials and high export volumes, the Vietnamese agarwood essential oil industry is facing a paradox: the more it develops, the more it reveals a core weakness – the lack of a sufficiently strong national standard system to define its value. While many countries have taken a step forward with “scientific metrics,” Vietnam is still struggling with criteria based on sensory perception and internal company policies.

A billion-dollar market but “every place has its own standard”

According to summaries from international classification systems, to date, there is no specific ISO standard for agarwood essential oil, even though it is one of the high-value commodities in the global fragrance and medicinal industry.

However, it is worth noting that countries are not sitting still waiting for a common standard, but have proactively built their own systems:

• China: Applies essential oil classification based on purity (A+, A, B) and intended use (medicinal, cosmetic, perfume), while controlling it through specific chemical indicators such as 2 characteristic chromone compounds and GC-MS analysis. Standards such as DB46/T 422-2017 or LY/T 2904-2017 are considered the most detailed.

• Malaysia: Has gone further by introducing a system of 11 quality indicator compounds, combining GC-MS and data analysis models (PCA, Z-score). This is a highly scientific approach that reduces reliance on sensory perception.

• Indonesia, Thailand: Maintain the AAA, AA, A… grading system but add geographical origin factors (Kalimantan, Trat…) and chemical testing to increase reliability.

Conversely, the Middle Eastern market – a major consumer of high-end essential oils – has almost no technical standards, relying instead on scent perception, longevity, and brand reputation. This creates a paradox: high value but also very high risk of fraud.

Vietnam: Large exports but lacking a “reference framework”

Vietnam is currently considered one of the important sources of agarwood, especially for the Aquilaria crassna species. However, according to documents, 100% of the current essential oil quality classification depends on the internal standards (TCCS) of each enterprise, with no unified TCVN (Vietnam Standards) or QCVN (National Technical Regulations).

Market reality shows:

• Some enterprises classify by A/B/C/D

• Some units use AAA, Super, Deluxe

• Some places rely solely on sensory descriptions (sweet, deep, smoky scent…)

Even physical and chemical indicators such as:

• Density

• Refractive index

• Optical rotation

…also have no common standard thresholds for comparison.

Notably, although many enterprises have used GC-MS to analyze components, the selection of which compounds to use as a “standard” remains entirely spontaneous, with no mandatory regulations.

Consequences: Not just a technical issue

The standardization gap does not stop at a professional level but has been creating clear consequences:

1. “Mixing gold with brass” domestically
Without a common standard, an essential oil can be classified as “AAA” at one company but only “A” elsewhere. This distorts the market and causes information confusion for consumers.

2. Loss of advantage in international negotiations
In export transactions, partners often require a COA (Certificate of Analysis) based on international or national standards. When Vietnam lacks a standard system, enterprises are forced to “follow the buyer’s rules,” leading to the risk of being pressured on price.

3. Difficulty in controlling counterfeit and adulterated goods
According to global trends, high-quality agarwood essential oil usually has a high content of oxidized sesquiterpenes, along with compounds such as agrosprol, β-agarofuran… However, without standard thresholds, determining authenticity becomes very difficult.

4. Hindrance to building a national brand
While other countries promote “origin-based” identification (such as Kalimantan, Trat…), Vietnam, despite having famous regions like Khánh Hòa, Phú Quốc…, lacks an accompanying standard system to certify quality.

Why is Vietnam slow to standardize?

Some industry experts believe there are three main reasons:

• Reliance on sensory tradition: The long-standing agarwood trade has traditionally relied on “smell – look – feel” experience, creating barriers to transitioning to standardization.

• Lack of foundational scientific data: To build standards, a large database of chemical composition by region and by agarwood-forming method is required.

• No leading agency: Building TCVN requires coordination between the agricultural, scientific, and technological sectors and businesses – something that is currently not synchronized.

Cannot be slower in the race for standardization

Global trends are very clear:

• Standardization using GC-MS

• Identification of marker compounds

• Application of AI, chemometrics for classification

If it does not catch up quickly, Vietnam risks falling into the position of a “raw material supplier” rather than participating deeply in the value chain.

Recommendation: From “spontaneous” to “mandatory standardization”

To remove the “bottleneck,” a clear roadmap is needed:

• Develop TCVN for agarwood essential oil with mandatory indicators (chemical, physical-chemical)

• Establish a national set of standard compounds (marker compounds)

• Regulate specific grading thresholds (A+, A, B…)

• Mandate standardized COA for export products

• Link standards with geographical indications

Without standardization, is sustainable development hard to achieve?

The Vietnamese agarwood industry is at a crossroads: either continue to develop spontaneously, relying on experience and short-term markets; or transform towards standardization, transparency, and science.

The standardization gap – if not filled soon – will not only diminish product value but also cause Vietnam to lose the opportunity to position itself in the global value chain of an industry likened to the “black gold” of the East.