Cashew exports forecast to rise in 2016

Vietnam now has 450,000 hectares of cashew grown mainly in Binh Phuoc, Ba Ria Vung Tau, Dong Nai, and the Central Highlands provinces.

In recent years, cashew has been one of Vietnam’s farm products earning consistently high export revenues. 

Last year Vietnamese exporters shipped 330,000 tons of cashew nuts valued at US$2.5 billion to foreign markets. The major markets include the US, China, and the EU, according to Dang Hoang Giang, secretary general of the Vietnam Cashew Association (Vinacas).

He said, “Cashews are one of the two Vietnamese export items whose volume and value increased last year. With last year’s performance, Vietnam maintained its 10-year lead as the world’s top exporter of raw cashew nuts accounting for half of the total global trade value.”

90% of Vietnam’s cashew export volume consists of raw cashews. The domestic cashew industry now plans to increase processing and diversify its products to boost export values.

At a recent meeting in Ho Chi Minh City, Vinacas said Vietnam’s processed cashew increased from 5% in 2014 to 7% last year. 

Nguyen Van Chieu, President of Long An Seafood-Agriculture Processing Company, noted, “To increase cashew export revenue, the sector plans to raise the value of cashew products. That means Vietnam will reduce exports of raw cashews.”

The industry is focusing on product diversification and investing in processing technology.

Vu Van Tich, head of the science and technology department of the National University in Hanoi, stressed, “Cashew nuts can be extracted into essential oil. Cashew shell can be turned into fuel. Cashew resin can create certain types of paint which resist harsh weather. These are high-tech agricultural products which can bring in higher revenues.”

Nguyen Quang Huyen, director of the Hoang Son Import-Export Company in Binh Phuoc province, said the most important need at the moment was for the government to set policies that encourage domestic cashew exporters to invest in processing technology, diversify export items, and expand markets.

“There are only 160 large-scale processors and less than one third of them have begun to invest in brand building and applying international food hygiene standards in preparation for integration. Those things need to be stepped up,” Huyen said.