Vietnam Cashew Export Industry - A Comprehensive Overview

Author: Mai at 17-11-2024
Cashew knowledge

OVERVIEW

Contribution of Cashew Exports to Agricultural Exports

Despite global political and economic fluctuations in 2023, Vietnam cashew industry recorded impressive growth compared to 2022:

Volume: Reached 644,000 tons annually, a 24% increase.
Value: Achieved $3.6 billion, an 18.1% rise.
Position: Ranked 5th among key agricultural export products, significantly contributing to Vietnam's agricultural export revenue and foreign exchange earnings.

Agricultural export value in 2023 (Billion USD)
Total	Seafood	Vegetables	Rice	Coffee	Cashew Nut	Rubber	Cassava	Pepper	Tea	Others
32.5	9	5.6	4.7	4.2	3.64	2.9	1.3	0.91	0.208	0.042

Vietnam-agriculture-export-value-2023-chart

Vietnam cashew industry sells a variety of cashew nuts, popularly: raw cashew nuts, salted roasted cashew nuts with shell, shelled roasted cashew nuts - no salt, spiced roasted cashew nuts, cashew pieces, cashew by-products such as cashew oil, cashew shell,..

There are 3 premium cashew nuts grades exported include W320, W240, and W180, comprising 63.5% of total export volume. Notably, compared to 2022:

W320: Dominated with 275,500 tons exported, valued at $1.65 billion, a 29.4% increase in volume and an 18.8% increase in value.
W240: Followed with 95,500 tons exported, valued at $606.8 million, reflecting a 26.2% rise in volume and a 16.9% rise in value.

Cashew Nut Export Markets

In 2023, Vietnam cashew exports experienced significant growth across major markets, with the strongest increases seen in UAE, China, Saudi Arabia, and the UK.
The United States remains the leading market for both cashew export volume and value, maintaining its top position for years.

10 Largest Export Markets for Vietnam Cashew Nuts
Market		2023		Compare with 2022
Market		Volumn (Metric Ton)	Value (Thousand USD)	Volumn (%)	Value (%)
1	United State	158,498	885,547	10.3	5.1
2	China	112,954	683,070	49.8	55.2
3	Netherlands	61,708	352,998	15.6	19.1
4	Germany	21,461	119,015	23.7	12.2
5	England	19,164	97,785	24.1	13
6	UAE	18,715	105,524	72.3	61.1
7	Australia	17,162	92,210	7.6	-2.8
8	Canada	14	85,862	16.4	12.6
9	Saudi Arabia	12,917	72,732	46.3	32.2
10	Thai	10,123	52,905	24	8.9

Market Share of Vietnam Cashew Export

Leveraging modern production lines and a strong focus on the best cashew on quality and competitive pricing, Vietnam Cashew Nuts has held the position of the world’s leading cashew kernel exporter since 2006. That year, Vietnam surpassed India with exports of 127,000 tons valued at $504 million.
According to ITC data, Vietnam dominated the global cashew kernel export market in 2023 with a 62.1% market share.

Top-10-Largest-Cashew-Kernel-Exporting-Countries-In-The World-2023

VIETNAM CASHEW INDUSTRY DEVELOPMENT

History of Cashew Tree Development

Cashews were introduced to Vietnam in the 19th century, initially grown for shade and as a fruit crop. Recognizing their high nutritional value, delicious taste, and commercial potential, cashew cultivation expanded significantly. Key milestones include:

1988: Vietnam exported cashews for the first time with an output of 1,000 tons from just three factories.
1989: Cashew was officially classified as a strategic industrial crop under the Ministry of Agriculture.
1990: The Vietnam Cashew Association (Vinacas) was founded to accelerate industry development.
1999: The number of factories grew to 62, with a total processing capacity of 250,000 tons/year.

Today, Vietnam is the world’s largest cashew exporter, maintaining its lead in export volume among all agricultural products for years.

Otis-Binh-Phuoc-cashew-nut-factory

Raw Cashew Supply for Processing

In 2023, Vietnam's Ministry of Agriculture reported:

Over 200,000 households cultivating cashews on approximately 314,000 hectares.
Harvested area: 300,000 hectares producing 345,000 tons (average yield: 1.15 tons/ha).
Major cultivation regions include southern provinces like Binh Phuoc (known as the “Cashew Capital”) with over 50% of the growing area, the rest is distributed in Dak Lak, Dong Nai , Lam Dong, Dak Nong, Gia Lai, Vung Tau, Binh Thuan,...

However, domestic raw cashew production meets only around 10% of the processing demand. To ensure sufficient supply, Vietnam began to buy cashew nuts ( raw material) from Africa in 1996, with current imports also sourced from Cambodia and African countries.

Sustainable Development Goals

The Vietnamese government, in collaboration with enterprises and led by Vinacas, continues to 2 develop solutions for sustainable cashew cultivation. Efforts include:

1. Expanding the area in domestic

Advancing cashew varieties and cultivation techniques.
Planning and expanding concentrated production areas.
Strengthening links with processing industries.
Promoting regional branding for Vietnamese cashews.

2. Cooperate, exploit and develop cashew raw material areas in Cambodia and Southern Laos, including research cooperation, transfer of varieties and cultivation techniques to neighboring countries. After that, businesses will import this raw cashew source to Vietnam for processing.

This multi-faceted approach aims to bolster Vietnam’s position as a global leader in the coming competitive cashew global market.