How has Vietnam cashew export market reached out to the world?

Currently, Vietnam’s export cashew kernel products are present in more than 90 countries and territories, accounting for about 80% of the world’s cashew kernel exports. In which, there are 3 main markets: the US accounts for 30%, China accounts for 11%, the EU and other countries account for 59% of the market share. However, the dependence on raw materials is becoming a concern of cashew enterprises. Keep reading the updated news below to more understand the vietnam cashew export market to some countries around the world.

A brief history of cashew export in Vietnam

Over the past 30 years, from a country exporting raw cashew nuts in small quantities, Vietnam has become the leading exporter of cashew kernels in the world.

According to statistics of the Vietnam Cashew Association – Vinacas, in 1990, Vietnam just started exporting cashew kernels with a volume of 286 tons, worth 1.4 million USD. Then in 2006, for the first time, Vietnam South surpassed India to take the number one position in the world in terms of cashew kernel exports when it reached nearly 127,000 tons, worth US$504 million.

For 15 consecutive years, from 2006-2020, even in difficult times, Vietnam’s cashew industry has always maintained its No. 1 position in the world in terms of cashew kernel exports and completely mastered technology and processing equipment.

In 2020, according to statistics from the General Department of Customs, despite being heavily affected by the COVID-19 epidemic, cashew nut exports still reached nearly 515 thousand tons, worth 3.21 billion USD, up 13% in volume, but down 2.3% in value compared to 2019.

Up to now, Vietnam has exported cashew kernels to more than 90 countries and territories, accounting for about 80% of the world’s cashew kernel exports. Cashew exports earned more than 31 billion USD. That is an impressive figure of the cashew industry in the past 30 years.

Market overview – The situation of Vietnam cashew export market in recent year

In general, cashew nut exports in the first 4 months of 2021 still increased by 15.8% in volume over the same period, reaching 161,322 tons, but the value earned decreased slightly by 1.1%, reaching 948.83 million USD.

The export price of cashew nuts in April 2021 increased by 1.7% compared to March 2021 but decreased by 9.7% compared to the same month in 2020, reaching an average of 5,914 USD/ton. On average, the export price of cashew nuts in the first 4 months of 2021 also decreased by 14.6% over the same period last year, reaching 5,881.6 USD/ton.

Cashew nut produced in Vietnam has good quality to the top of the world but only meets a very small part for processing. In the global cashew nut value chain, Vietnam mainly still exports low-value processed cashew kernels, about 10 USD/kg, while finished cashew kernels reach consumers in other countries about 30 USD/kg. Thus, Vietnam only accounts for about 30% of the cashew industry value chain.

Vietnam’s cashew exports increase in volume to some main markets

The US is always the largest consumer market of Vietnam cashew nuts, cashew exports to the US in the first 4 months of this year reached 45,704 tons, equivalent to 251.37 million USD, accounting for 28% of the total volume and accounting for 26.5 % of the country’s total cashew nut export turnover, down 12.2% in volume and 30.3% in value over the same period, the price also decreased by 20.6%, reaching USD 5,500/ton.

EU is the second-largest market for Vietnam’s cashew nut consumption, cashew nut exports to the EU reached 33,885 tons, equivalent to 173.17 million USD, accounting for 21% of the total volume and accounting for 18.3% of the total export turnover. Cashew nut exports of the whole country, increased by 9.5% in volume but decreased by 20% in turnover over the same period, the price decreased by 27%, reaching 5,110 USD/ton.

Cashew nut exports to China – the third-largest market, reached 21,961 tons, equivalent to 158.85 million USD, priced at 7,233 USD/ton, up 5% in price, up 104.9% in turnover, up 115% in volume, accounting for 13.6% of the total volume and accounted for 16.7% of the total cashew export turnover of the country.

In May 2021, cashew nut exports to 10 major markets all increased compared to May 2020. In which, exports to the markets of Canada, Russia, and Thailand increased at a very high rate. Generally for the first 5 months of 2021, cashew nut exports to China, the Netherlands, Canada, Russia, and Thailand increased over the same period in 2020, but exports to the United States, Germany, UK, Australia, Italy decreased.

Vietnam’s cashew exports in first 5 months and forecasts

In the first 5 months of 2021, the value of French cashew imports reached US$52.95 million, up 16.1% over the same period in 2020. In which, France increased its imports from Vietnam sharply, an increase of 36.2 %, reaching 34.41 million USD. Vietnam’s cashew nut market share in France’s total import value accounted for 64.99% in the first 5 months of 2021, higher than 55.41% in the first 5 months of 2020. France is the cashew nut import market. The third-largest cashew nut in the EU, with an average import growth rate of 7.99%/year in the period 2015 – 2020. This will be an opportunity for Vietnam’s cashew industry to be widely available in the French market as well as the EU.

In 2021, Vietnam aims to export cashews to reach $3.6 billion, an increase of 12.9% compared to 2020. Vietnam’s cashew industry will continue to persevere with the goal of “keeping the quantity, increasing the quality, increasing the price. ” in production and business in 2021 and the following years. According to VINACAS, the supply of cashew nuts in 2021 is quite stable. The total area of ​​cashew trees in Vietnam in 2021 will reach 297,000 hectares, equal to 99.7% of that in 2020.

Vietnam’s cashew nut market is gradually asserting its position in the global market. As a result, our company – Vihaba would like to be an important part of providing the best quality cashew nuts to international customers. Vihaba is committed to giving our customers the best standard cashew nuts with a variety of types