Market Trends of Vietnam Cashew Industry
This section covers the major market trends shaping the Vietnam Cashew Market according to our research experts:
Expanding Processed Cashew Market
- Vietnam carries out high-density planting, commercial farming, and seed programs to ensure high yields. The cashew nut industry in Vietnam has developed rapidly due to the development of domestic technology to cut production costs and ensure quality. The country's focus on advanced processing technology and improving the mechanization of the entire cashew processing has resulted in an increase in the profit margin by saving on labor and bringing consistency and cost competitiveness.
- Vietnam's cashew nut export has expanded to over 85 countries in the last eight years. It is the largest supplier of cashew to the United States, China, the Netherlands, Australia, Canada, and New Zealand. In 2021, Vietnam's cashew exports accounted for USD 3,088.9 thousand, an increase of 8.6% from the previous year.
- The increase in market value is associated with significant demand for Vietnam's cashew globally. The export volume of processed cashew nuts in the first quarter of 2021 reached 108 thousand metric tons, valued at USD 634 million, an increase of 13.2% in volume but a decrease of 5.8% in value over the same period in 2020. The United States, China, and the Netherlands remained Vietnam's three largest cashew import markets, accounting for 30.7%, 13.4%, and 12.1% of the total cashew nut export value, respectively.
Understand The Key Trends Shaping This Market
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Favorable Government Initiatives are Supporting the Market's Growth
- Vietnam is one of the major cashew exporters across the world. The Vietnamese government is taking various measures to expand production and promote the regionally grown cashew among the trading countries. The government established the Vietnam Cashew Association, abbreviated as Vincas, to develop the production of cashew nuts in the country. Various initiatives, such as training farmers and providing seeds, positively impacted cashew production and quality.
- With an area of 175,000 hectares, Binh Phuoc is considered the "capital" of cashew nuts in the country. This is also the land that is considered to have the best quality cashew nuts in the world. The government made this region the country's main cashew-growing area by expanding plantations to 200,000 ha in 2020 to meet the growing demand. The country's cashew association (Vinacas) signed a memorandum of understanding (MOU) with the cashew council and many other trading countries to support trading between the countries and provide technical advice to producers.
- To increase cashew productivity, the Agricultural Science Institute for Southern Coastal Central of Vietnam (ASISOV) tested wide varieties of cashews, with trial production resulting in high productivity. These varieties are recognized by the Ministry of Agriculture and Rural Development (MARD) and put into mass production.
- Further, in February 2022, to access the European, American, and Chinese markets, Vietnam undertook the EU-Vietnam Free Trade Agreement (EVFTA), UK-Vietnam FTA (EVFTA), and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
