Vietnam is now leading in terms of cashew exports. At the same time, the country has purchased up to 98% of Cambodia’s output for export processing.
Cashew is an outstanding item of Vietnam when the country is currently holding the No. 1 position in the world for 16 consecutive years in cashew export and accounting for nearly 80% of the total global production.
Despite being the world’s top exporter of cashew, in recent years, Vietnam has had to increase its import of raw cashew nuts due to the shortage of domestic processing materials. Now, 90% of raw materials for the production of Vietnam’s cashew industry are imported from Cambodia and Africa.
Vietnam has to import cashew for export processing.
According to the General Department of Customs, Vietnam’s cashew imports in October reached more than 141,000 tons, worth more than 220 million USD. This was down 16.9% in volume and 9.3% in value compared to the last month.
In the first nine months of the year, this import volume of cashew reached more than 2.3 million tons, worth more than 2.89 billion USD, down 8.5% in volume and 1.1% in value over the same period in 2023.
In terms of market, Cambodia is Vietnam’s largest supplier of cashew with more than 815,000 tons, worth more than 1.06 billion USD, up 33% in volume and 27% in value over the same period last year.
The average import price reached 1,300 USD/ton, down 5% over the same period last year. In 2022, Cambodia exported 471,520 tons of raw cashew and earned more than 1.07 billion USD. Of which, up to 98.5% of Cambodia’s cashew exports were to Vietnam.
Ivory Coast ranked second among suppliers with more than 547,000 tons, worth more than 678 million USD, down 30% in volume and 20% in value over the same period last year. The average import price was 1,239 USD/ton, up 14%.
Gana was the third-largest supplier of cashew with more than 264,000 tons, worth more than 301 million USD, up 12% in volume and 18% in value over the same period in 2023. The average import price reached 1,141 USD/ton, up 6% compared to the same period last year.
Both cashew import and export prices have been fluctuating continuously since the beginning of the year. One of the biggest reasons is supply chain disruptions due to decreased growing area. While supply has become scarce, demand in emerging markets such as China and other parts of Asia has increased sharply due to an expanding middle class and increasingly health-conscious consumers. Increased competition for available supply has pushed up prices.
Regarding the export situation, in 2023, Vietnam earned more than 3.6 billion USD with 644,135 tons, a strong increase of 24% in volume and 18.1% compared to last year. In 2024, Vietnam aims to export a record of 3.8 billion USD (about 200 million USD higher than in 2023).
The biggest barrier now is the rising price of input materials. The supply of raw cashew in the country has also decreased sharply. According to the Ministry of Industry and Trade, businesses need to actively monitor market developments and invest in improving quality to maintain export momentum.