Vietnam aims for US$10.5 billion in cashew nut exports

Wednesday, 2018-05-09 12:00:29
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Processing cashews for exports at the Phuc An Processing & Trading Company in Binh Phuoc province.
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NDO – Vietnam will make great efforts towards increasing the export value of the intensively processed cashew nut products and byproducts (cashew nut shell liquid) by US$7 billion by 2030, while bringing the total export revenues of cashew nuts to US$10.5 billion.

It is one of the targets set out in a project for the restructuring of Vietnam’s cashew industry intended to increase added value and sustainable development until 2025, with a vision to 2030, which was recently submitted to the Ministry of Agriculture and Rural Development (MARD) by the Vietnam Cashew Association (VINACAS).

According to VINACAS, since 2006, Vietnam has risen to become the largest cashew exporter in the world, making the cashew industry among the country’s key farming items with an export turnover of more than US$1 billion since 2010.

Vietnam exported US$3.62 billion worth of cashew nuts in 2017, the highest value recorded so far, while maintaining its 60% market share of the total of global cashew nut export revenues (about US$5.5 billion) and remaining the world no. 1 in terms of cashew nut processing and exports.

Despite its concerted efforts, Vietnam’s cashew industry is also being confronted with numerous difficulties, as the growth rate of farming production has yet to keep up with the growth rate of the processing industry. Last year, the output of raw cashews only met about 20% of the demand for export processing of businesses.

In addition, competition in this industry is becoming ever more fierce, with the penetration risks posed by potential opponents, especially those from China, African countries (East Africa and West Africa), and other Southeast Asian nations (Thailand and Cambodia). The consumption demand is increasing with stricter requirements in terms of quality and food safety.

Given that fact, VINACAS has consulted with the MARD to consider the issuance of another restructuring project for Vietnam’s cashew industry, which aims to draft a restructuring and development strategy and vision for the cashew sector from now until 2025, with a vision to 2030.

According to the project, the planned area for cashew cultivation is expected to reach 380,000 hectares nationwide by 2025, generating a productivity of two tonnes of cashew nuts per hectare. Up to 2030, Vietnam will stabilise its cashew growing area at around 400,000 hectares, with an output of 2.2 tonnes of cashew nuts per hectare.