Vietnam is the world's leading cashew exporter but makes no profit, why?

Processing cashew nuts for export by a business in the South - Photo: NGUYEN TRI

According to the General Department of Customs, Vietnam exported more than 486,000 tons of cashew nuts, bringing in nearly 2.8 billion USD, but Vietnam spent more than 2.3 billion USD to import raw cashews in the first 8 months of this year.

Regarding the parallel import-export story of the cashew industry, on September 14, speaking with Tuoi Tre Online, Mr. Tran Huu Hau - Deputy General Secretary of the Vietnam Cashew Association (Vinacas) - explained that Vietnam imports a lot of raw cashews from Africa and Cambodia.

"The reason is that Vietnam does not grow much cashew. In 2023, the demand is 3.1 million tons of raw cashews, but domestic output is only 260,000 tons, accounting for about 10-12% of the level that can be met. If we do not import, we cannot produce," said Mr. Hau.

The advantage of Vietnam's cashew industry, according to Mr. Hau, is the relatively good processing capacity; mastering technology and on-site cashew processing equipment, but there are still paradoxes.

Explaining specifically, Mr. Hau added: "The country is the largest cashew exporter, but the crop yield is poor and not growing, making farmers' income unstable. Moreover, cashew trees compete strongly with durian and other fruit trees.

Even in Tay Ninh province, cashew competes with cassava. Cashew productivity is only 1.2-1.5 tons/ha, not much value, while durian brings in 1 billion USD/ha.

Large dependence on imported raw materials, while raw material prices are high, is reducing the export efficiency of enterprises.

Ms. Nguyen Thi Diem - owner of a cashew export company in Binh Phuoc province, specializing in exporting cashew nuts - said that the price of raw cashew nuts imported from African countries is sometimes higher than the price of exported cashew nuts, leading to difficulties for businesses in coordinating and adjusting production capacity to be effective.

Currently, the five largest markets supplying cashew nuts to Vietnam include: Ivory Coast, Cambodia, Nigeria, Ghana and Tanzania. Of which, cashew nuts imported from Ivory Coast and Cambodia account for 54.7% of the total import value of the entire cashew industry.

Cashew industry faces high risk of trade deficit

According to the Vietnam Cashew Association, Vietnam's cashew exports will increase in the fourth quarter of 2024 due to increased global demand. Vietnam currently holds the world's No. 1 position in cashew nut exports, with expected turnover reaching a record $4 billion in 2024.

In the past 8 months, cashew nut exports earned nearly 2.8 billion USD, but the cashew industry spent 2.3 billion USD importing raw cashews for processing. Thus, exports and imports are approaching parity, so the industry association admits that the Vietnamese cashew industry is facing a very high risk of trade deficit.

Source: https://tuoitre.vn/viet-nam-xuat-khau-dieu-hang-dau-the-gioi-nhung-khong-loi-lai-gi-vi-sao-202409141928003.htm