VOV.VN - The enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) has served to create a range of competitive advantages for Vietnamese cashew products to make inroads into the demanding EU market, according to the Vietnam Cashew Association.
Most notably, tariffs placed on Vietnamese cashew nuts imported into the EU have been slashed to 0%, as opposed to the previous figures of between 7% and 12%.
Last year, Vietnam exported 135,000 tonnes of cashew nuts to the EU, representing a rise of 16.5% in volume and 7.9% in value compared to 2020.
During the initial four months of this year, cashew exports to this market reached 48,680 tonnes worth US$290.23 million, up 21.8% in volume and 21.4% in value month on month.
The Netherlands, Germany, the UK, and Italy are currently Vietnam’s ten leading cashew export markets within the EU.
The Netherlands alone makes up the largest consumer with a market share accounting for approximately 60%, followed by Germany (47%), the UK (40.6%), France (48%), and Spain (37.5%).
Dang Hoang Giang, general secretary of the Vietnam Cashew Association, said the EU is currently the country’s second largest cashew nut export market, representing 23% of the output and 22% of the total value of the entire industry that is anticipated to open up bright prospects ahead for local cashew nuts to retain its leading position in the market.
The executive recommended that local businesses strive to gain greater insights into EU regulations on imports through law firms in order to receive stronger support in their business transactions in an attempt to further penetrate and maintain a strong foothold in the stringent market.
Vietnamese firms must carefully study the EVFTA to avoid violations of export contracts which may lead to fines or cause firms to be involved in scams, such as the recent one relating to 100 containers of Vietnamese cashew nuts exported to Italy, Giang noted.
The expert also underscored the necessity of learning about the consumer tastes as EU consumers are typically keen on spiced cashews, chocolate covered cashews, and other products made from cashew, noting that the local cashew industry must prioritise value added cashew products for the EU market.
This year, the cashew industry has set an export target of US$3.8 billion, an increase of US$200 million compared to last year.