+84 (24) 3200 3356Vietnam’s cashew exports
Written by Harley Trinh
The biggest advantage of the Vietnamese Cashew Industry
April 12, 2021
“The biggest advantage of the Vietnamese cashew industry is the advanced processing technology produced by Vietnamese people. However, this is not enough …”
From a country that exports raw cashew with a small quantity, Vietnam’s cashew industry has transformed and maintained its No. 1 position in the world for 15 consecutive years (2006-2020). Up to now, Vietnam has exported cashew to more than 90 countries and territories, accounting for about 80% of cashew exports in the world.
According to information from the Ministry of Industry and Trade, the export of cashew nuts in March 2021 was estimated at 41 thousand tons, worth $ 240 million, up 86.5% in volume and 88.2% in value compared to February 2021. Generally in the first quarter of 2021, the export of cashew nuts was estimated at 108 thousand tons, worth $ 634 million, up 13.2% in volume, but down 5.8% in value over the same period in 2020.
In the first quarter of 2021, the cashew industry still exported well, sharply increased in volume, but the export price was lower than that of the first quarter of 2020.
However, the Vietnam Cashew Association said that in the first quarter of 2021, the cashew industry still exported well, strongly increased in volume, but the export price was lower than in the first quarter of 2020, so the export turnover increased disproportionately. with volume increase. The cashew industry in Vietnam has a big conflict that needs to be resolved: the processing stage is strongly developed, the market is expanding globally, the Vietnamese cashew nuts are of good quality in the top of the world but only partially satisfy. It is very small for processing and the life of cashew farmers is still difficult.
Along with that, our country’s cashew processing industry for export is under great pressure from the policy of supporting cashew growers, restricting the export of raw cashew nuts from African countries such as Ivory Coast, Tanzania … Meanwhile , the major cashew consuming markets in the world such as India and China are also applying policies to limit the output of cashew kernel imported from Vietnam. On the other hand, in the global cashew value chain, Vietnam mainly exports low-value pre-processed cashews, about 10 USD / kg, while the finished cashew kernels reach consumers in countries about 30 USD. / kg.
According to Mr. Pham Van Cong, Chairman of the Vietnam Cashew Association, the biggest advantage of the Vietnamese cashew industry is the advanced processing technology produced by Vietnamese people. However, this is not enough. To overcome the above difficulties and challenges, the cashew industry needs to have a methodical strategy to increase the value of cashew nuts, shifting from preliminary processing of cashew nuts and exporting semi-finished products to refined processed products, going directly into the market.
The Vietnam Cashew Association also wants the Government and ministries to have a branding strategy and promote communication through diplomatic channels, trade promotion to enhance the position of processed cashew products of Vietnam on the international market.
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