Despite numerous challenges, Vietnam’s cashew industry continues to thrive, solidifying its position as a leading agricultural export. Recent statistics from the Vietnam Cashew Association (Vinacas) reveal that cashew exports for the first six months of 2023 reached $1.6 billion, underscoring the resilience of this vital sector.
In 2023, the total cashew cultivation area nationwide encompassed approximately 320,000 hectares, a slight decrease of 2,300 hectares compared to 2022. However, the projected cashew yield is set to reach 345,000 tons, marking a noteworthy increase of 3,300 tons. The average productivity per hectare stands at 1.15 tons, demonstrating a 30 kg per hectare increase.
During the first half of this year, Vietnam imported around 1.44 million tons of raw cashew nuts worth approximately $1.8 billion, marking a 19.79% increase in volume and a 5.16% increase in value. The raw cashew nut inventory of essential businesses is sufficient to meet production demands until the end of this year and the first quarter of 2024.
Moreover, Vietnamese exporters managed to ship over 279,000 tons of various cashew products during the first half of 2023, generating about $1.6 billion in export revenues. This represents a 9.49% increase in volume and a 7.65% increase in value compared to the previous year.
This achievement is even more remarkable, given the challenging global landscape. The cashew industry has maintained positive growth and belongs to the category of agricultural products, with over a billion dollars in export revenue in Vietnam for the first half of 2023.
Vinacas offers insights into the cashew market and competitive nuts like almonds, pistachios, walnuts, and macadamias. According to Vinacas, 2023 to 2024 may witness a slowdown in global consumption of various nuts. Nevertheless, the overall production and yield of most nuts remain stable.
Looking ahead, Vinacas anticipates significant challenges for the cashew industry, primarily due to external factors such as declining raw material prices, conflicts in Ukraine, persistent inflation, and the tight monetary policies of various countries, all of which have dampened purchasing power in key markets.
Vinacas has presented two scenarios for the industry in the latter half of 2023 and the first quarter of 2024. In the optimistic scenario, increased demand and accelerated consumption would reduce inventory levels in major consumption markets, including the United States and Europe, thus boosting year-end sales.
Furthermore, enhancing the quality control of cashews in key markets is essential to ensure that low-quality and substandard products have difficulty accessing these markets. This would contribute to stabilizing the price and quality of Vietnamese cashew exports.
However, in an unfavorable scenario where the global economy remains challenging, cashews may not be a priority item for consumers, leading to reduced demand. Consequently, importers in various markets might delay purchases until demand picks up again.
Based on Vinacas’ latest plan, if the prices of raw cashew nuts remain stable and continue to decrease from now until the end of 2023 and the beginning of 2024, Vietnam’s cashew nut export revenue for 2023 is projected to reach approximately $3.05 billion, a $50 million reduction from the previous plan.
Given the current circumstances and future projections, Vinacas recommends several solutions to support the cashew industry:
- Import Policies: Vinacas suggests that relevant government departments consider implementing import policies that ensure fairness and prevent a surge in cashew nut imports into Vietnam.
- Support for Businesses: Local authorities and government bodies should create the most favorable conditions for cashew businesses, especially concerning bank credit, tax policies, and customs procedures.
- Market Diversification: To boost cashew exports, Vietnam should focus on finding new markets, improving product quality, and building the Vietnamese cashew brand.
- Promotion Efforts: Increased promotion of Vietnamese cashew products to consumers in key markets, such as the EU and CCTPP, with the support of the Ministry of Industry and Trade.
- Business Enhancement: The government should offer programs to help businesses invest in technology, equipment, digital transformation, and upgrading processing facilities to meet international standards.
- Support Against Fraud: Authorities should support cashew, pepper, and spice businesses that have recently been victims of fraud by overseas partners, particularly in Italy, to recover their deposit payments from shipping companies.
- Plant Protection: The Ministry of Agriculture and Rural Development should assist in resolving issues related to electronic phytosanitary certificates (e-Phyto) with Ivory Coast and other countries. Customs inspection offices should increase manpower to facilitate sampling and inspection at warehouses instead of ports on regular and weekend days, thus expediting cargo clearance.
- Standards and Regulations: Develop specialized and technical regulations for cashews and related products. The government should also coordinate with relevant agencies to assist the cashew industry in complying with new food safety regulations in foreign markets, especially China, the EU, and the United States.
- Research and Planning: Conduct surveys, assessments, and long-term planning for cashew cultivation areas. In situations with limited acreage, explore cooperative solutions and develop raw material sources in Cambodia and Southern Laos.
- Market Information: Improve information sharing about foreign markets, customers, consumption trends, and trade risks with relevant government departments, the Ministry of Foreign Affairs, and Vietnam’s trade offices abroad to support cashew, black pepper, and spice businesses during challenging times.
Despite its ups and downs, the Vietnam cashew industry remains a vital contributor to the country’s economy. By implementing these recommendations, Vietnam can further fortify its position as a global cashew leader, adapt to changing market dynamics, and continue to thrive in adversity.
Source: baochinhphu.vn