The association attributes the record value of cashew exports to the soaring price of the product on the global market. It aims to ship 150,000 tonnes abroad to earn US$800-850 million this year.

However, the association warns that 2008 is the third consecutive year the domestic cashewnut processing industry has faced difficulties due to unfavourable weather, high production costs and high interest rates for bank loans. Most cashew growers in the Central Highlands and South-eastern region reported a fall of 30-40 percent, or even 70-80 percent in cashew volume this year.

It says that many domestic processors are running short of unprocessed cashews and the escalating price of the unprocessed cashews on the world market could cause processing plants to halt production later this year.

Despite being one of the largest cashew growers in the world, Vietnam has imported unprocessed cashews for processing. The import volume has increased considerably in recent years, from 200,000 tonnes in 2007 to estimated 250,000 tonnes in 2008.

To maintain export growth, the association has asked the Government to provide VND50-60 billion annually to localities to expand their cashew growing capacity. It also proposed simplifying loan borrowing procedures to support cashew processors and exporters.