The growth prospect of cashew nut industry in Vietnam in 2022 is optimistic

Vietnam’s Ministry of agriculture and rural development has set a target of cashew nut export of US $3.8 billion in 2022. The association also said that Vietnam is currently the largest cashew nut Market in the world. At present, Vietnam is still the world’s largest exporter of cashew nuts.

Advantages brought by various free trade agreements

Free trade agreements such as the Vietnam EU free trade agreement (evfta), the Vietnam UK free trade agreement (ukvfta) and the trans Pacific Partnership Comprehensive and progress agreement (cptpp), which have recently entered into force, have created conditions and opportunities for Vietnamese products to enter the markets of Europe, the United States and China.

According to the cashew nut Association of Vietnam, the average growth rate of the global cashew nut market is expected to reach 4.6% from 2021 to 2026. It is estimated that the global unprocessed cashew nut market will reach about US $7 billion by 2025. Vietnam is currently the country with the largest cashew nut Market in the world. At present, Vietnam is still the world’s largest exporter of cashew nuts.

2021 is considered to be a bumper year for Vietnam’s cashew export, with an export volume of 579800 tons and an export volume of US $3.64 billion. Compared with 2020, the export volume and export volume increased by 12.6% and 13.3% respectively. Vietnam’s exports to all markets have increased sharply, with 35% in Africa and 24% in Asia. Especially in the European market, Vietnam’s cashew nut imports account for 22%, while the US market accounts for 23% of Vietnam’s cashew nut exports.

The representative of Vietnam cashew Association revealed that Vietnam can take advantage of the advantages brought by evfta and cptpp. Since evfta came into effect on August 1, 2020, the tariff on European imports of Vietnamese cashew nuts has been reduced to zero (previously 7-12%), so Vietnam’s exports to Europe this year and subsequent years have broad prospects. In addition to Europe, Vietnam’s cashew nut export to China has a good prospect. In 2021, Vietnamese cashew nuts accounted for 89% of China’s total cashew nut imports.

Prepare materials for production and processing

In order to meet the orders of customers in Europe, America, China and Africa, cashew nut processing and export enterprises must first prepare for processing raw materials. At present, the supply of cashew raw materials in China can only meet less than one third of the demand of factories. Therefore, it is inevitable to import cashew raw materials from cashew producing countries.

Deng Huangjiang, Secretary General of the cashew nut Association of Vietnam, said that the goal set by the Ministry of agriculture and rural development of Vietnam for the export volume of cashew nut industry to reach US $3.8 billion in 2022 is the basis and driving force for cashew nut enterprises to promote production, processing and export activities.

Deng Huangjiang added that among the cashew raw material producing areas in China, Pingfu province has the largest cashew output and uniform quality. Therefore, in order to realize the sustainable production, processing and export of cashew nuts, especially to achieve the goal of cashew nut export of US $3.8 billion in 2022, Pingfu province plans to promote an efficient and sustainable cooperation model so that at least 50% of cashew nut planting areas produce according to Certified Technology.

Source: Vietnam people’s daily

Post time: Mar-03-2022