The African Deluge: How Vietnam Became a Global Export Powerhouse with a $2 Billion Shopping Spree

Vietnam boasts a range of agricultural products that rank highly in global exports, including rice, coffee, rubber, pepper, and cassava. Among these, cashew nuts are a key export commodity, with the country maintaining its position as the world’s largest exporter of cashew kernels for 16 consecutive years, accounting for nearly 80% of global production.

According to the Food and Agriculture Organization of the United Nations, in 2018, Vietnam produced approximately 2.66 million tons of cashew nuts, a 23% increase from the previous year. This figure is 3.4 times higher than that of India, the second-largest producer, with 790,000 tons. This cements Vietnam’s position as the king of cashew nuts globally.

However, Vietnam relies heavily on imports of raw cashew nuts from various suppliers worldwide. The country’s cashew processing plants depend on imported raw materials, with over 3 million tons sourced internationally, of which approximately 2.2 million tons originate from Africa, mainly West Africa. Domestic supply meets only 10% of the demand.

Preliminary statistics from the General Department of Customs indicate that cashew nut imports to Vietnam in July reached 291,413 tons, valued at over $346 million. This represents a 1.9% increase in volume and a 7% surge in value compared to the previous month.

Cumulative imports during the first seven months of the year exceeded 1.7 million tons, with a value of over $2.1 billion. This reflects a 2.5% increase in volume and a 0.6% rise in value compared to the same period in 2023.

In terms of market share, Cambodia emerged as Vietnam’s largest cashew nut supplier during this period, providing over 786,000 tons, with a turnover of over $1.01 billion. This signifies a substantial increase of 34% in volume and 26% in value compared to the previous year. Notably, the price per ton was lower, at $1,287, a decrease of 6%.

In addition to Cambodia, two African countries, Ivory Coast and Ghana, are emerging as significant suppliers of cashew nuts to Vietnam. Specifically, Ivory Coast, the second-largest provider, exported over 325,000 tons, valued at more than $368 million. This represents a decrease of 20.5% in volume and a drop of 22% in value compared to the previous year. The average price stood at $1,134 per ton, a 2.7% decline, and was considerably lower than the import price from Cambodia.