Vietnam's cashew nut export target this year is $3.8 billion, only slightly up from 2021, according to the Vietnam Cashew Association (Vinacas).

Speaking at Vinacas’ 10th congress in Ho Chi Minh City late last month, chairman Pham Van Cong said the focus is on keeping the cashew nut cultivation area unchanged while improving quality and value.

Despite the challenges caused by the Covid-19 pandemic, exports topped $3.66 billion last year, a year-on-year increase of 14 per cent and higher than the exports of any other farm produce like cashew nuts, fruits and vegetables, rice, coffee or pepper.

Vietnam accounted for a whopping 80 per cent of the entire global cashew nut exports.

The exports went to over 100 countries and territories, with the US, China, the Netherlands, and Germany being the largest markets.

But Vietnam remains a big importer of raw cashew nuts to process for exports since domestic supply is inadequate, he said.

Vietnam has around 300,000ha under cashew trees and an average annual output of 370,000 tonnes a year, or just 25-30 per cent of local processors’ demand.

Last year enterprises imported 3.1 million tonnes of raw cashew nuts from many countries, mostly in Africa but also Cambodia, an 81.4 per cent increase over 2020.

This year around two million tonnes are expected to be imported.

Ta Quang Huyen, chairman of Binh Phuoc province-based Hoang Son 1 Co and Vinacas’ deputy chairman, said global demand for cashew nut would continue to increase by eight-to-10 per cent per year in the coming years.

But with supply being higher than demand, prices are unlikely to increase this year, he said.

Vietnam Trade Promotion Agency director Vu Ba Phu said: “The cashew nut market will continue to be good for the next 10 years. Enterprises need to focus more on promoting their products in large markets such as the US and EU and those that have free trade agreements [FTA] with Vietnam.”

Demand in the EU, which accounts for 40 per cent of the world’s total, is expected to grow by five per cent a year, and Vietnamese exporters have an advantage there thanks to the EU-Vietnam FTA, he said.

He called on enterprises to focus more on raising product quality and meeting requirements in terms of corporate social responsibility and food safety and hygiene in importing countries.

Vinacas chairman Nguyen Minh Hoa said African countries are increasing their own exports of processed cashew nuts to Europe thanks to their geographical advantage, resulting in increased competition.

Huyen said: “We don’t know when the Russia-Ukraine war will come to an end. If it prolongs, all industries will be badly affected.”

Phu said that to sustain its position in the world market, Vietnam’s cashew nut industry needs to control the quality of inputs, keep abreast of market information and consumption trends, enhance linkages between stakeholders, invest more in processing, building brands, and developing products with higher added value.

Minister of Agriculture and Rural Development Le Minh Hoan told the congress the cashew nut industry needs to change its thinking to cope with current challenges and difficulties and enhance added value.

Raising value by increasing productivity and output is old, and adding value by extensive processing is no longer new, and the industry needs creative thinking such as creating stories for their products that evoke emotions in consumers.

The congress chose the association’s 17-strong executive committee, with Cong re-elected as chairman until 2026.

VIET NAM NEWS/ASIA NEWS NETWORK