Vietnam is one of the leading exporters of cashew nuts in the world. Besides, with the advantage of the EVFTA agreement, Vietnam can expand the cashew nut market in many parts of Europe. This is a good sign for the cashew industry in Vietnam.
The potential of cashew nut exports in the European market
Deputy Director of the Center for Export Support (Trade Promotion Department, Ministry of Industry and Trade) said that people considered 2021 as a successful year for Vietnam’s cashew. Vietnam’s cashew exports with an export volume of 579,800 tons. worth 3.64 billion USD, up 12.6% in volume and 13.3% in value compared to 2020.
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. It is right after the EVFTA takes effect on August 1, 2020.
In the EU region, Vietnamese cashew nuts are exported to many Western and Eastern European countries. Last time, due to the influence of the Russia-Ukraine conflict, Vietnam’s cashew nut exports faced the risk of supply chain disruption due to escalating trade and geopolitical tensions. Further, high freight rates create more difficulties for import and export activities.
Facing the trend of diversifying supply along with advantages from FTAs, Vietnam has many favorable conditions to increase its attractiveness and competitiveness. Moreover, it can help to pave the way for the establishment of a new supply chain with the EU market. In general, Eastern and Western European markets in particular, attracting a wave of high-quality investment, are deeply involved in the global value chain.
Places to export cashew nuts in Vietnam
A representative of the Trade Promotion Agency added: that in the EU region, Vietnamese cashew nuts are exported to many Western and Eastern European countries.
In Western Europe, people exported Vietnam’s cashew nuts to countries: Germany, the Netherlands, France, Belgium… For example, the cashew industry has well exploited the Dutch and German markets. So, 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.
Solutions to enhance cashew nut exports
To promote cashew nut exports to the European market in the coming time, Vinacas proposed that the Government of Vietnam and the Governments of EU countries must concretize cooperation through FTAs, typically EVFTA, Vietnam- United Kingdom (UKVFTA) creates maximum trade facilitation for cashew businesses through FTA commitments.
“Vietnam’s cashew market share in European countries is currently from 40-60%. It is suggested to increase to 60-80% shortly, especially in main markets such as the Netherlands, the UK, and Germany, France, Spain”, suggested Vinacas.
Vinacas 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.
What is the difference between the cashew season in Vietnam and the world?
Cashew nut season in Vietnam usually fluctuates from early February to early June. Vietnamese grew Cashew trees in Dong Nai, Binh Thuan, and Binh Dinh provinces,…
The cashew growing area in Dong Nai as of 2020 is 36,000 ha. Besides, the cashew nut season of Dong Nai takes place from February to May. Because the rainy season in Dong Nai usually starts in mid-April, it affects more or less the grain recovery rate. The output of Dong Nai cashew nuts is at 5200 tons/year. Meanwhile, Compared with provinces like Gia Lai and Binh Thuan, cashew nut cultivation in the Southeast region is somewhat more favorable.
Where can international businesses buy Vietnamese cashews?
In Vietnam, many regions grow cashew nuts with high quality and low prices. To bring to international customers the best quality cashew products, Vihaba has selected the best cashew products. Now is the time to harvest cashews in Vietnam, so cashews are now of high quality and cheap. Moreover, We also provide the latest product catalogs and pictures and videos to customers.
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