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Cashew nut exports to the EU are increasingly open thanks to EVFTA

23/05/2022

The EU is currently Vietnam’s second largest cashew nut export market. Over the past time, the growth of cashew nut […]

The EU is currently Vietnam’s second largest cashew nut export market. Over the past time, the growth of cashew nut exports to the EU has contributed significantly to the overall growth of the industry.

Speaking at the “Consulting session on exporting cashew products to Eastern and Western European markets” on the afternoon of May 13, Ms. Nguyen Thi Thu Thuy, Deputy Director of the Export Support Center (Department of Trade Promotion). According to the Ministry of Industry and Trade, 2021 is considered a successful year for Vietnam’s cashew exports with an export volume of 579,800 tons, worth $3.64 billion, up 12.6% in volume. and increased by 13.3% in value compared to 2020. The goal in 2022 is that cashew nut export turnover will reach 3.8 billion USD, an increase of 200 million USD compared to 2021.

The EU is currently Vietnam’s second largest cashew nut export market, accounting for 23% of the total volume and 22% of the total value of the industry. According to estimates, Vietnam’s cashew exports in 2021 to the EU market will reach 135 thousand tons, worth 816 million USD, up 16.5% in volume and 7.9% in value compared to 2020.

The growth of cashew nut exports to the EU contributed significantly to the overall growth of the industry. The tax rate for cashew nut processing products imported into the EU from Vietnam will be reduced to 0% immediately after the EU-Vietnam Free Trade Agreement (EVFTA) takes effect from August 1, 2020.

“This reduction is very important because before the EVFTA took effect, the tariff on cashew nuts imported into the EU from Vietnam ranged from 7 to 12%. The implementation of the EVFTA is expected to bring great opportunities for the cashew industry,” said Ms. Thuy.

A representative of the Trade Promotion Agency added: in the EU region, Vietnamese cashews are exported to many Western and Eastern European countries.

In Western Europe, Vietnam’s cashew nuts are exported to countries: Germany, the Netherlands, France, Belgium… In which, the cashew industry has well exploited the Dutch and German markets. Germany and the Netherlands are now important trading hubs for imported cashews for re-export.

For the Eastern European region, Vietnamese cashews are present in many countries: Russia, Poland, Romania, Ukraine… In the past time, due to the influence of the Russia-Ukraine conflict, Vietnam’s cashew exports have to face difficulties. the risk of supply chain disruption due to escalating trade and geopolitical tensions; High freight rates create more difficulties for import and export activities.

From a local perspective, Ms. Chau Thi Le, Director of the Department of Industry and Trade of Long An province, said that the export turnover of agricultural products of Long An is about 700-800 million USD/year. In which, cashew nut export turnover is over 100 million USD.

Long An has nearly 50 cashew nut export enterprises. Enterprises are invested in modern technological lines, ensuring export standards with high requirements for goods quality. In addition to the traditional market of China, Long An cashew nuts have also been exported to many markets such as the US, EU, some Middle East markets…

“Long An hopes to continue to receive active support from the Export Support Center, Vietnam Trade Counselors in other countries on market information, connecting with businesses in need with a number of world products. strength of Long An to help businesses access and expand export markets to a number of countries in the EU”, Ms. Le emphasized.

In order to promote cashew nut exports to the European market in the coming time, Mr. Dang Hoang Giang, General Secretary of the Vietnam Cashew Association (Vinacas) proposed that the Government of Vietnam and the Governments of EU countries must concretize cooperation. through FTAs, typically the EVFTA, the Vietnam-UK FTA (UKVFTA) creating maximum trade facilitation for cashew businesses through the FTA’s commitments.

“Vietnam’s cashew market share in European countries is currently from 40-60%, it is suggested to increase to 60-80% in the near future, especially in main markets such as the Netherlands, the UK, and Germany. , France, Spain,” said Mr. Giang.

Mr. Giang also asked the authorities to support information on prospects, market forecasts and consumption trends in the European market for cashew products. This requires very active support from the Vietnamese Trade Offices abroad.

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