As of October 1, 2024, Vietnam's cashew export industry is grappling with significant challenges that could impact its global market position. The country, which is the world's leading processor of cashew nuts, aims to reach $4 billion in export revenue for 2024. However, the industry has reported a notable decrease in domestic raw cashew production, which now meets only 10-12% of local processing needs, forcing reliance on imports from Africa and Cambodia.
In 2023, Vietnam's cashew export revenue reached $3.64 billion, while raw material imports totaled $3.1 billion, resulting in a trade surplus of $500 million. However, the gap between export revenue and import costs is narrowing, exacerbated by a 40-50% increase in raw cashew prices due to supply shortages from Africa, particularly influenced by El Niño weather patterns.
Industry insiders report that many small and medium-sized enterprises (SMEs) are struggling to compete with larger foreign-owned firms, risking market dominance shifts. The area dedicated to cashew cultivation in Vietnam continues to decline, leading producers to consider more lucrative crops. The situation poses a risk not only to Vietnam's economy but also to the global supply chain of cashew nuts.
Vu Thai Son, president of the Binh Phuoc Cashew Association, emphasized the precarious state of the industry, warning that without immediate changes, many SMEs could face bankruptcy, leaving larger corporations to control the market.
Source: lecourrier.vn