Vietnam’s cashew export industry has shown a positive trend in Q1-2023, with exports reaching 122 thousand tons and worth 708 million USD, representing a 16.6% increase in volume and 14.2% in value over the same period in 2022. Although the cashew exports initially declined in January 2023, it grew rapidly again since February 2023, with exports reaching 34.3 thousand tons and worth USD 197.7 million, up 25.8% in volume and 26.9% in value compared to January 2023 and 35.4% in volume and 31.2% in value compared to the same period in 2022.
Despite these impressive results, Vietnam’s cashew industry faces intense competition in the global market, particularly in China, which reduced its imports of cashews from Vietnam while increasing imports from other producing countries such as Ivory Coast, Togo, Tanzania, and Benin. These challenges are not new to the cashew industry, which had experienced ten years of continuous export growth until 2022, when the cashew nut processing and export industry experienced a decline of 10.3% in volume and 15.1% in value compared to the previous year, 2021. The proportion of cashew exports to the Chinese market has decreased from 15% to about 10% of Vietnam’s total cashew export turnover.
However, the Vietnamese cashew industry remains the world leader in technology and export volume, accounting for about 80% of the global cashew trade. Its main export markets are the US, Europe, and China. In March 2023, the average export price of Vietnam’s cashew nuts reached US$5,913/ton, up 2.6% compared to February 2023 but down 1.2% compared to March 2022.
Despite the industry’s overall success, the decrease in cashew exports in 2023 can be attributed to high global inflation, which has increased living costs and higher spending on essential needs, thereby reducing the consumption of cashew nuts and other non-essential foods. Additionally, the central bank’s decision to raise interest rates has made it difficult for Vietnamese cashew businesses to sell raw cashew nuts at a high price and cashew kernels at a low cost, negatively impacting the industry’s growth.
According to the Vietnam Cashew Association (Vinacas), the decrease in cashew exports in 2023 is due to high global inflation, which has increased living costs and essential needs and reduced cashew nut consumption and other non-essential foods. Additionally, the central bank’s decision to raise interest rates has made it difficult for Vietnamese cashew businesses to sell raw cashew nuts at a high price and cashew kernels at a low cost, further exacerbating the industry’s growth.
Despite these challenges, Vietnam’s cashew industry remains one of the world’s most competitive industries. Thanks to its technological advancements and high export volumes, Vietnam’s Cashew Exports Q1-2023 Show Positive Growth. However, the industry must address these issues to ensure sustainable growth and maintain its position as a global cashew production and exportation leader.
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