Thanks to EVFTA, Vietnam’s cashew nuts exports in April 2022 reached 49,000 tons, equivalent to 290 million USD, up 22% in volume and 21% in value compared to March.
Notably, EU countries such as the Netherlands, Germany, the UK, and Italy are all in Vietnam’s top 10 cashew export markets.
Experts said that the EVFTA Agreement has been very effective after a period of implementation. In 2021, the EU will be Vietnam’s second largest cashew nut export market, accounting for 23% of the total volume and 22% of the industry’s total value. Specifically, cashew nut exports to the EU market reached 135 thousand tons, worth 816 million USD, up 16.5% in volume and 8% in value compared to 2020.
EVFTA Benefits lead EU to be Vietnam’s second largest cashew nuts export market
After the EVFTA, the EU will reduce the tax rate for cashew nuts to 0% as compared to 7 to 12% previously, an important milestone and an excellent opportunity for cashew businesses.
In Western Europe, Vietnam’s cashew nuts are exported to countries such as Germany, the Netherlands, France, and Belgium, where the cashew industry has exploited the Dutch and German markets well. These are also critical commercial hubs for imported cashews for re-export. In Eastern Europe, Vietnamese cashew nuts are present in many countries, such as Russia, Poland, Romania, and Ukraine.
The EU market is No. 2 among Vietnam’s cashew export markets, accounting for 23% of the total volume and 22% of the industry’s total value. According to estimates, Vietnam’s cashew nut exports to the EU market in 2021 will reach 135 thousand tons, worth 816 million USD, up 16.5% in volume and 7.9% in value compared to 2020.
According to General Department of Customs statistics, in April 2022, Vietnam’s cashew exports reached 48.68 thousand tons, worth US$290.23 million, up 21.8 percent in volume and 21.4 percent in the book. % in value compared to March 2022. This is the positive result of EVFTA
In April 2022, the average export price of Vietnam’s cashew nuts reached $5,962/ton, down 0.3 percent to March 2022 but up 0.8 percent to April 2021. Generally, in the first four months of 2022, the average export price of Vietnam’s cashew nuts reached US$5,957/ton, up 1.3% over the same period in 2021.
Vietnam’s cashew nuts are mainly exported in raw form.
However, many analysts believe Vietnam’s cashew nuts position in the EU market is competitive. Specifically, in France, in 2019-2020, Vietnam’s cashew market share decreased from 61% to 46%. At supermarkets and hypermarkets, there are almost no Vietnamese-branded cashew products. Most domestic enterprises only focus on wholesale and have not yet approached the final consumer segment.
Although Vietnam’s cashew nuts dominate the EU market, they are only in raw form, with very few processed products, especially roasted and spiced products, according to the taste of EU customers.
Meanwhile, incredibly spiced cashews are becoming increasingly popular among EU consumers because they are a healthy alternative to other salty snacks. Many manufacturers have created recipes covering other cashew foods, such as chocolate-covered cashews.
However, experts recommend that EU regulations on imported goods, including cashews, are complicated and regularly changed and updated. Before putting interests on the market, businesses must invest a cost to find this information through law offices.
The EU has no mandatory rules, but food safety certifications, social responsibility certifications, and packaging and labeling requirements… are notable plus points for businesses when exporting goods to the EU.
Organic cashew products are trendy in the EU, which is a potential niche market for Vietnamese businesses to approach.
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