Looking at the statistics, it can be seen that cashew exports are showing signs of recovery after three years of decline due to common difficulties in the world. However, the internal situation of Vietnamese cashew nut enterprises is rocking on the waves.
In the last 2-3 years, the cashew processing industry has been facing difficulties due to the pandemic, political conflicts in the world, and the global economic downturn, causing cashew consumers to cut their spending. Despite maintaining the position as the largest exporter of cashew nut in the world, the size and growth rate of Vietnam’s cashew industry is on the decline.
Surprisingly, within the first 03 months of this year, when most of Vietnam’s key industries such as fishery, furniture, coffee, rubber, etc all declined, cashew products had a growth step.
Cashew enterprises are facing difficulties because of capital pressures.
The Import-Export Department (Ministry of Industry and Trade) said that Vietnam’s cashew exports in March 2023 reached 60,000 tons, worth 355 million USD. This result is up 50.4% in quantity and 48.6% in value over the same period last year. In the first quarter of 2023, Vietnam’s cashew exports are estimated at 122,000 tons, worth 708 million USD, which is up 16.6% in quantity and 14.2% in value over the same period in 2022.
In terms of growth, cashew products can be said to be leading, higher than the fruit and vegetable industry.
In some markets, Vietnamese cashews are showing good competition signals. For example, in Japan, Vietnam has surpassed India to become the largest exporter of cashews to this country. Similarly, in the two most important markets, the US and China, Vietnamese cashews are still dominating with the No.1 position.
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Although the export of the cashew industry is quite optimistic, regarding the situation of Vietnamese cashew businesses, representatives of the Vietnam Cashew Association (Vinacas) had to exclaim: “Enterprises are losing money, the loss is very heavy. A paradox today is that the more the business sells, the more it losses. But if the business does not sell, it can’t make money. ”
Another business said: “The general situation of businesses today is that there is no capital to operate. Interest rates are too high while the price of cashew nuts cannot be increased, even the price is forced to lower because consumers tighten their spending. Meanwhile, our business itself has been burdened with debt since the previous year, so far has not been able to struggle anymore, forced to sell to rotate capital. We have to sell despite losses, so in general, the exports increase but in fact, most businesses lose money. “
Statistics show that the average export price of Vietnam’s cashew in March 2023 is estimated at 5,913 USD/ton, up 2.6% compared to Feb 2023, but down 1.2% compared to the same time last year. In the first quarter of 2023, the average export price of our country’s cashew nuts is estimated at 5,826 USD/ton, which is down 2.1% over the same period in 2022.
Nervousness and debts cycle have made many cashew businesses like sitting on a fire.
Mr. Vu Thai Son, Chairman of Long Son Joint Stock Company, Chairman of Binh Phuoc Cashew Association, said: “Many enterprises face difficulties because of pressures. Some are stuck in real estate investment with capital difficulties. Some have to pay high-interest rates to invest in factories and warehouses; high costs but low selling prices lead to losses. And there are many enterprises importing raw materials for sale, but so far they have not been able to complete tax procedures so they face the risk of legal. ”
Recently, the Provincial Police Department of Binh Phuoc issued a decision to prosecute and arrest temporarily Mr. ĐV.T. (47 years old, Director of T.T. Trading and Production Co., Ltd. at Long Phuoc Ward, Phuoc Long Town, Binh Phuoc) to investigate the smuggling of cashew nuts. According to Mr. Vu Thai Son, there are currently many cashew businesses with similar circumstances. They are still operating but don’t know when they will be dealt with.
In terms of the market, Vinacas representatives said that the demand for consumption in the world is still there, but the competitiveness is now great because supermarket systems prioritize buying cheap goods, and it is difficult to accept price increases at present./.