The coming into force of major free trade deals such as the EU-Vietnam Free Trade Agreement (EVFTA), the UK-Vietnam FTA (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), has also brought about many chances for Vietnamese products to access the European, America and Chinese markets.
According to the Vietnam Cashew Association (Vinacas), the cashew nut market is predicted to expand 4.6 percent each year in the 2021-2026 period. In Vietnam, the market is expected to reach 7 billion USD in 2025. Vietnam is currently the top exporter of cashew nut in the world.
Last year was a successful year for Vietnamese cashew sector with export volume of 579,800 tonnes and value of 3.64 billion USD, year-on-year rises of 12.6 percent and 13.3 percent, respectively.
The highest growth in cashew export earnings was seen in the African market with 35 percent, followed by the Asian market with 24 percent. Vietnamese cashew took 22 percent of market share in Europe and 23 percent in the US and even 89 percent in the Chinese market.
A Vinacas representative said that Vietnam can make use of advantages from the EVFTA and the CPTPP to boost cashew exports.
In order to complete orders from Europe, the US, China and Africa, local cashew producers and processors are advised to make careful preparations, especially in materials, as domestic supplies currently meet only one third of the processing demand.
Dang Hoang Giang, Vinacas General Secretary said that the target of 3.8 billion USD in cashew exports for this year given by the MARD is a motivation for local firms to speed up their production, but also a pressure on them due to the material sources.
Vinacas Vice Chairman Ta Quang Huyen said that COVID-19 pandemic is not a problem for the sector, but material source is.
However, Huyen expressed belief that the sector will overcome difficulties in 2022 like it did in 2021 to complete its target.
