Market Trends of Vietnam Cashew Industry
Largest Exporter of Shelled Cashews Globally
Vietnam's cashew industry has experienced exponential growth, transitioning from a raw cashew producer to a global leader in cashew processing and export due to strategic investments, favorable natural conditions, and efficient processing capabilities.
Vietnam's tropical climate, especially in regions such as Binh Phuoc and Dong Nai, is perfect for growing cashews, resulting in high yields. The country has modernized its cashew industry, focusing on quality control and strategic trade approaches, making it a leader in cashew processing. Its geographic location provides easy access to key Asian markets, such as China and India, reducing transportation costs and enabling faster delivery times. Vietnam's cashew nut export has expanded to over 90 countries in the last 10 years. It is the largest supplier of cashews to the United States, China, the Netherlands, Australia, Canada, and New Zealand.
Vietnam's network of trade agreements has boosted its competitiveness globally. For instance, 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). As a result of the EVFTA that is now in place, Vietnam has also become the largest source of cashew nuts for the EU. In the first 10 months of 2022, Vietnam exported 98.97 thousand metric tons of cashews to European markets. This represents an increase of 9.8% over the same period in 2021.
Favorable Government Initiatives are Supporting the Market's Growth
Vietnam is one of the major cashew producers across the world. The Vietnamese government is taking various measures to expand production and promote the regionally grown cashews among the trading countries. To promote the sustainable development of the cashew nut industry, Vietnam has implemented various policies and initiatives. The government has been supporting cashew nut farmers by providing funding, training, and technology transfer. In 2020, Vietnam developed a national plan for the cashew nut industry's development until 2030. This plan emphasizes improving product quality, increasing productivity, and developing new cashew nut products. 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 countries such as Cambodia in 2023.
The Agricultural Science Institute for Southern Coastal Central of Vietnam (ASISOV) conducted tests on a wide range of cashew varieties to increase productivity. The trial production yielded high productivity, leading to the recognition of these varieties by the Ministry of Agriculture and Rural Development (MARD). The country has also implemented high-density planting, commercial farming, and seed programs to ensure high yields. Therefore these initiatives are anticipated to drive the cashews production in the country.
