Vietnam's cashew industry targets to achieve 3.8 billion USD from export this year. (Photo: VNA)Speaking at the recent 10th congress of the association (Vinacas) in HCM City,Pham Van Cong, its chairman, said the focus is on keeping the cashewcultivation area unchanged while improving quality and value.
Despite the challenges caused by the COVID-19 pandemic, exports topped 3.66billion USD last year, a year-on-year increase of 14 percent and higher thanthe exports of any other farm produce like cashew, fruits and vegetables, rice,coffee, or pepper.
Vietnam accounted for a whopping 80 percent of the entire global cashewexports.
The exports went to over 100 countries and territories, with the US, China, theNetherlands, and Germany being the largest markets.
But Vietnam remains a big importer of raw cashew to process for exports sincedomestic supply is inadequate, he said.
The country has around 300,000 hectares under cashew and an average annualoutput of 370,000 tonnes a year, or just 25-30 percent of local processors’demand.
Last year enterprises imported 3.1 million tonnes of raw cashew from manycountries, mostly in Africa but also Cambodia, an 81.4 percent increase over2020.
This year around two million tonnes are expected to be imported.
Ta Quang Huyen, chairman of Binh Phuoc province-based Hoang Son 1 Company andVinacas’ deputy chairman, said global demand for cashew nut would continueto increase by 8-10 percent per year in the coming years.
But with supply being higher than demand, prices are unlikely to increase thisyear, he said.
Vu Ba Phu, director of the Vietnam Trade Promotion Agency, said: “The cashewmarket will continue to be good for the next 10 years. Enterprises need tofocus more on promoting their products in large markets such as the US and EUand those that have free trade agreements with Vietnam.”
Demand in the EU, which accounts for 40 percent of the world’s total, isexpected to grow by 5 percent a year, and Vietnamese exporters have anadvantage there thanks to the EU-Vietnam FTA, he said.
He called on enterprises to focus more on raising product quality and meetingrequirements in terms of corporate social responsibility and food safety andhygiene in importing countries.
Vinacas chairman Nguyen Minh Hoa said African countries are increasing theirown exports of processed cashew to Europe thanks to their geographicaladvantage, resulting in increased competition.
Huyen said: “We don’t know when the Russia-Ukraine war will come to an end. Ifit prolongs, all industries will be badly affected.”
Phú said to sustain its position in the world market Vietnam’s cashew industryneeds to control the quality of inputs, keep abreast of market information andconsumption trends, enhance linkages between stakeholders, invest more inprocessing, building brands, and developing products with higher added value.
Minister of Agriculture and Rural Development Le Minh Hoan told the congressthe cashew industry needs to change its thinking to cope with currentchallenges and difficulties and enhance added value.
Raising value by increasing productivity and output is old, and adding value byextensive processing is no longer new, and the industry needs creative thinkingsuch as creating stories for their products that evoke emotions in consumers.
The congress chose the association’s 17-strong executive committee, with Congre-elected as chairman until 2026./.
VNA
