Vietnam Cashew Association lowers export target amid weak demand

As cashew exports in the first half of 2022 fell by 9.2% against the same period last year, the Vietnam Cashew Association (VCA) has to adjust down its annual export target to 3.2 billion USD.

Cashew exports stood at over 1.5 billion USD in the first half of 2022, down 9.2% from a year earlier. (Photo: VNA)

Hanoi (VNA) — As cashew exports in the first half of 2022fell by 9.2% against the same period last year to over 1.5 billion USD, the Vietnam Cashew Associationhas to adjust down its annual export target to 3.2 billion USD.

Tran Van Hiep, Vice Chairman of VCA, said the Russia-Ukraineconflict is a major cause for the falling exports, as Russia was the 14thlargest importer of Vietnamese cashews and the conflict had the country cut offfrom the SWIFT system, causing payment difficulties for Vietnamese exporters.

Another cause is the mounting inflation in the US and EU. Higher inflationleads to higher prices for essential items, leaving consumers with no choicebut to cut back on non-essential items, such as cashew nuts. The demand forVietnamese cashew fell accordingly.

In addition, China is sticking to its zero-COVID policy, holdingback the importation of the Vietnamese nuts, he added.

Amid contracting demand from abroad, VCA has tolower its export target to 3.2 billion USD for 2022, 600 million lessthan the target set at the beginning of the year.

Cashew exports earned Vietnam over 3.6 billion USD in 2021. In thefirst five months of 2022, Vietnam shippedabroad over 206,000 tonnes of the nuts worth 1.19 billion USD, down 7.81% involume and 6.81% in value, the Vietnam Cashew Association reported.
Although the turnover decreased, the averageexport price increased by 1.45% compared to the same period in 2021, reachingabout 5,792 USD per tonne./.

VNA