Concerned about the global political instability, Vietnam’s cashew sector asked for a reduction in export target

Vietnam Cashew Association (Vinacas) will propose to the Ministry of Agriculture and Rural Development (MARD) to reduce the export target of cashew nut in 2022 to 3.2 billion USD.

(Cashew Nut WW320 Vietnam Original)

On Feb 28th, 2022, Mr. Pham Van Cong, Chairman of Vinacas, said: The export target in 2022 that MARD has set to cashew sector is 3.8 billion USD. However, the political situation on the world now has many instabilities. The war between Russia and Ukraine is affecting the global economy, especially the economy of European countries, which is the major export market of Vietnam’s cashew nut. Therefore, it is difficult for our cashew sector to achieve the goal assigned by MARD at the end of 2021.

Previously in the meeting in early January 2022, Vinacas was very optimistic about cashew export in 2022 since the export turnover of cashew nut in 2021 reached a record of 3.64 billion USD. Regarding the plan in 2022, the cashew sector showed high expectations for cashew trade despite the impact of COVID-19. Vinacas has also set a goal in 2022 of 3.8 billion USD for cashew export which fulfills the target assigned by MARD.

However, by the end of Feb 2022, the COVID-19 pandemic in Vietnam became more complicated. Besides, the political situation on the world, especially in Europe is likely to be more unstable when the conflict between Russia and Ukraine is very tense. According to Mr. Pham Van Cong, it is necessary to adjust the export quotas in this context.

“In terms of cashew export, the EU market accounts for about 35% of production. If the political conflict between Russia and Ukraine prolongs, cashew export in 2022 will be seriously impacted. Hence, we need to reduce the target to a level consistent with the actual situation “, Mr. Pham Van Cong informed.

Mr. Pham Van Cong also said that MARD assigned an export target of 3.8 billion USD to Vinacas when the new political situation in Europe and the world had not happened yet. For now, the situation is different. The initial target of 3.8 billion USD is difficult to achieve due to the above reasons.

“Vinacas’ Information Council has determined that risks in the future are unpredictable since the political situation on the world is very complicated right now. Therefore, Vinacas will propose MARD to reduce the export target of cashew nut in 2022 from 3.8 billion USD to 3.2 billion USD. If the global situation becomes stable by the middle of 2022 and the consumption of cashew nut is better, Vinacas will continue to adjust the plan with MARD”, Mr. Pham Van Cong added.

According to the Export-Import Department (Ministry of Industry and Trade), after the US, the EU is Vietnam’s second-largest cashew export market, accounting for 23% of the total volume and 22% of the total export value. Vietnam’s cashew export now has market shares in 23 EU member markets. In particular, Germany and The Netherlands are currently important trading partners since these markets import for both domestic consumption and re-export to other markets in the bloc.