Promoting deep processing to export cashew nuts is a way to help businesses take advantage of FTAs and increase the value of this industry.
THERE IS PLENTY OF ROOM FOR EXPORT GROWTH
According to the General Department of Customs, Vietnam’s cashew nut exports in January 2024 reached 65,142 tons, equivalent to 351.2 million USD, a slight increase of 3.3% in volume and 2.3% in turnover compared to the last month. However, compared to the same period last year, Vietnam’s exports increased by 139.4% in volume and 126% in turnover. This is the strongest growth among all agricultural products.
Export of cashew nuts: Promote deep processing to take advantage of FTAs.
Mr. Tran Cong Khanh – Cashew Research and Development Center – said that the challenges for Vietnam’s cashew nuts today are that the products are not diversified, the added value is low, and the competitiveness is poor. The linkage and cooperation for development along the value chain is weak, especially the trade promotion with foreign partners with potential markets; the linkage of raw materials for processing and export is limited. Geographical indications, brand development, brand protection, and international intellectual property for cashew nuts have not been much implemented. In addition, the technique has certain limitations. Cashew development also faces the risk of being impacted by disasters and climate change.
Currently, the cashew industry is fiercely competed when Cambodia, West, and East African countries are promoting the development of cashews, and gradually investing in processing and exports.
However, experts said that the demand for cashew nuts in many markets has improved since the end of 2023, opening up brighter prospects for Vietnam’s cashew exports in 2024. Therefore, Vietnam’s cashew sector still has plenty of room for export growth. Now, cashew prices are low, which will help promote the consumption of this healthy item, while the yield and harvest output are quite stable.
PROMOTE DEEP PROCESSING TO TAKE ADVANTAGE OF FTA
The Vietnam Cashew Association believes that the world market will grow by an average of 4.6% in the period 2022 – 2027. The global trend towards vegan and plant-based diets has increased the demand for nuts and nut-processed foods, including cashews.
The demand for deep-processed cashew nuts.
According to forecasts, in the 2023 – 2024 crop, despite unfavorable weather and many pests and diseases, cashew nut production maintains about 170,000 tons. Now, Vietnam holds the No.1 position in the world in the field of cashew nut export, accounting for 80% of total global production for 16 consecutive years.
The demand for deep-processed cashew nuts is increasing and FTAs are promoting Vietnam to export this product. The exploitation of FTAs for the export of preliminarily processed cashew in general did not have much effect because before the agreement, the import tax on this item into markets was zero.
However, FTAs have a positive impact on the export of deep-processed cashews because governments previously taxed the import of this item to protect domestic production. But in FTAs that Vietnam has signed, deep-processed cashew nuts from Vietnam have been taxed at 0%.
Therefore, enterprises need to promote investment and production of deep-processed and high-quality cashew nut products to reach more customers and sell at better prices./.