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Vietnam surpassed India to rise to the number 1 position in the world in cashew kernel export

After 30 years of establishment and development, the cashew processing and exporting industry in Vietnam has gradually moved to the world’s No. 1 position. However, in the integration context, the cashew industry is still facing many difficulties and challenges.

This is a general statement of businesses at the 30th anniversary of the establishment of the Vietnam Cashew Association (Vinacas), held in Ho Chi Minh City, on the evening of November 23.

30 years of cashew exports

According to statistics of Vinacas, in 1990, when Vinacas was established, Vietnam began to export cashew kernels with a volume of 286 tons, worth $ 1.4 million. In 1995, the amount of exported cashew kernel reached 15,000 tons, worth 90 million USD. Immediately after that, in 1996, for the first time, cashew kernel export value reached 110 million USD. In 2004, for the first time, the quantity of cashew kernel exported reached more than 105 thousand tons equivalent to the export value of 436 million USD.

By 2006, for the first time, Vietnam surpassed India to rise to the number 1 position in the world in cashew kernel export when reaching nearly 127 thousand tons, worth $ 504 million. From 2017 up to now, Vietnam has become the world’s No. 1 cashew processing and import-export center, accounting for more than 50% of processed raw cashew.

In 2020, although heavily affected by the COVID-19 epidemic, as of the end of October 2020, cashew nut exports still reached more than 422 thousand tons, up 12% over the same period in 2019, reaching 94%. with the plan of 2020. Export turnover in 10 months will reach more than 2.6 billion USD, down 3% over the same period in 2019, reaching 82.3% compared to the plan.

It is expected that for the whole year 2020, cashew kernel export will reach 450 thousand tons, worth 3.28 billion USD. Thus, from 1990 to the end of 2020, the cashew industry for export is estimated at over 4.6 million tons of cashew kernel, with a total value estimated at more than 31 billion USD.

[Opportunity to bring Vietnamese cashew products to the world level]

Mr. Pham Van Cong, Chairman of Vinacas said that the biggest advantage of the Vietnamese cashew industry is the world’s most advanced processing technology produced by Vietnamese people. Since the establishment of the cashew processing industry up to now, technology and equipment are constantly being improved and innovated, so in a short time, the cashew industry has grown impressively.

“Especially in the past 10 years, thanks to the application of science and technology, mechanization, and automation of the cashew processing industry, it has solved many previously raised problems such as labor scarcity and environmental pollution. product quality management, especially the issue of ensuring food safety and hygiene, is of great concern to cashew importing countries.From a low starting point, after many countries, cashew industry has become one of the agricultural commodities Vietnam’s main export production. Now, when it comes to cashew nuts, importers of all countries think of Vietnam, “emphasized Mr. Pham Van Cong.
No less challenges

Although being at the top of the world, many businessmen in the cashew industry have acknowledged that Vietnam is only known for its No. 1 position in cashew nut processing and export, but most of the export processing enterprises. small and super small scale.

In the global value chain, Vietnam mainly exports semi-processed cashews for $ 10 / kg, while the finished cashew kernels sold in supermarkets around the world cost about $ 30 / kg. Thus, Vietnam only accounts for 30% of the cashew industry value chain, the remaining value belongs to international roasters and distributors.

Vietnam has not been able to actively source raw materials, having to import most of the raw cashew for processing, especially from Africa. Meanwhile, all import and export transactions must go through intermediaries, so they are always passive in cost.

Mr. Nguyen Minh Minh, Vice Chairman of VINACAS, said that at present, Vietnam’s export cashew processing industry is under great pressure from the new policy of cashew producing and processing countries. If African countries started to develop domestic processing instead of exporting raw materials, India, one of the largest cashew nut consuming markets in the world, which was a counterbalance to Vietnam was applying a tax policy to limit. Cashew imported, mainly from Vietnam.

With the Chinese market, which is considered “easy-going” but currently tightening the quality of agricultural products through quota, if not improving the quality, it is very difficult for Vietnam to enter this large market. Meanwhile, European countries and the US are also raising food safety standards for cashews imported from Vietnam.

Experts say that these market requirements are a challenge but also an opportunity to help the Vietnamese cashew industry restructure to adapt, perfect equipment, technology as well as improve governance capacity; at the same time, proceed to deep processing, increase the holdings in the value chain of the cashew industry.

Therefore, the cashew industry needs a methodical strategy to increase the value of cashew nuts, shifting from preliminary processing of cashew kernels and exporting semi-finished products to refined processed products, going directly to the supermarket.

Mr. Pham Van Cong said that in order to contribute to the cashew industry to take advantage of opportunities, advantages and overcome difficult challenges, Vinacas is promoting the construction and proposing to the Government to issue the “Development Strategy of the Vietnamese cashew industry Male in new situation. “

Accordingly, proposing the State’s mechanisms and policies to strongly develop deep processing, meet the diverse needs of the world market and win a worthy position in the global value chain. Besides, to strongly develop material areas in the direction of quality and efficiency; creating a proactive position in quality raw materials for processing, while contributing to the successful implementation of the three-farm policy.

Mr. Nguyen Trong Thua, Deputy Minister of the Interior, said that in order to develop a sustainable cashew industry, maintain a stable cashew acreage, it is necessary to pay attention to increasing income for cashew farmers. Specifically, to improve the productivity and quality of cashew orchards, and to renovate low-yield cashew orchards. For processing, deep processing must be strengthened, to keep quality and price competitiveness in the context of world trade facing many difficulties. In the coming time, the cashew industry needs to review and comprehensively evaluate opportunities and challenges to have an effective plan for production, processing and trade.

Meanwhile, many businesses share, improving corporate governance capacity and market forecasting are issues that Vietnamese cashew processing and exporting enterprises need to improve immediately to grasp the law of the market. market, have production and business strategies suitable to market needs./.

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