Vietnam’s cashew industry plays a central role in the global cashew supply chain. According to the Vietnam Cashew Association (VINACAS), Vietnam imports nearly 65% of raw cashew and accounts for nearly 80% of cashew kernel exports in the world market.
Raw cashew nuts are imported from Cambodia, Africa – Photo: Nguyen Quang
By 2023, Vietnam’s cashew industry is expected to import approximately 3 million tons of raw cashews and process and export over 600,000 tons of cashew kernels. However, the price of raw cashews has been increasing while the price of cashew kernels has also increased but not proportionally, causing many businesses to incur losses.
As we enter the 2024 cashew season, this concern is looming as the situation continues with domestic cashew processing factories and businesses showing signs of racing for raw materials, competing to set prices, which may further drive up the price of raw cashews.
VINACAS Chairman Pham Van Cong bluntly stated that Vietnamese businesses are “shooting themselves in the foot” by pushing up the cost of raw cashew nuts higher than the selling price. This situation has caused most domestic cashew processing and exporting businesses to suffer losses or not make a profit, with many processing plants having to temporarily suspend operations or reduce production.
Vietnam imports nearly 65% of the world’s raw cashew production – Photo: Nguyen Quang
Pham Van Cong believes that actively reshaping the global cashew supply chain, with the participation of domestic businesses and many cashew-producing countries, is necessary to find a common voice and link together to address uncertainties and maintain stable and sustainable development.
