Cashew sector forecast to enjoy export growth in 2022

The enforcement of major free trade agreements (FTAs) such as the EU-Vietnam Free Trade Agreement (EVFTA), the UK-Vietnam FTA (EVFTA), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), has also brought about more chances for local products to access the European, America, and Chinese markets.

According to the Vietnam Cashew Association (Vinacas), the cashew nut market is predicted to witness an annual surge of 4.6% throughout the 2021 to 2026 period. In terms of Vietnam, the market is expected to hit US$7 billion in 2025.

At present, the country is currently the top exporter of cashew nut in the world.
Last year represented a successful year for the Vietnamese cashew sector with an export volume of 579,800 tonnes and a value of US$3.64 billion, annual rises of 12.6% and 13.3 %, respectively.

The highest growth in terms of cashew export earnings was seen in the African market with 35%, followed by the Asian market with 24%. In addition, Vietnamese cashew took 22% of the market share in Europe and 23% in the United States, and even 89% in the Chinese market.

A Vinacas representative said that the country is able to make use of advantages from the EVFTA and the CPTPP as it strives to bolster cashew exports.

In order to complete orders from Europe, the US, China, and Africa, local cashew producers and processors are advised to make careful preparations, especially in materials, with domestic supplies currently meeting only one third of the processing demand.

Dang Hoang Giang, general secretary of Vinacas, said that the target of US$3.8 billion in cashew exports for this year given by the MARD can serve as a motivation for local firms to speed up their production, but will also put pressure on them due to the material sources.