In 2022, Vietnam revised its cashew nut export target, lowering it from $3.8 billion to $3.2 billion. However, the Vietnamese cashew industry fell short, achieving only $3.07 billion. As of 2023, the growth outlook remains pessimistic.
Vietnam Cashew Industry Miss Export Target in 2022
The Vietnam Cashew Association (VINACAS) recently conducted a conference to assess the activities of 2022 and outline the direction for 2023. According to VINACAS’s report, 2022 marked the conclusion of a decade-long period of consistent export growth for Vietnam’s cashew industry, spanning from 2011 to 2021. Unfortunately, Vietnam fell short of its cashew export target for 2022, achieving only $3.07 billion, below the adjusted goal of $3.2 billion, which was reduced by approximately $600 million from the initial target. Despite the setback, the US, EU, and China maintained their status as prominent markets for Vietnam’s cashew kernels.
Fortunately, there has been significant support for processed cashew products, both for domestic consumption and export, constituting approximately 5% of the entire output of processed cashew kernels in Vietnam’s industry for 2022. Despite this positive development, challenges persist for Vietnam’s cashew nut exports in 2023. The ongoing trend of reduced spending on non-essential food items, driven by inflation and economic recession, is expected to endure, leading to sluggish consumption and formidable price challenges. The outlook for cashew exports in the 2022-2023 period appears to present greater difficulties compared to the period from 2019 to 2021.
Challenges Persist for Vietnam Cashew Nut Exports 2023
As Vietnam’s cashew nut industry enters 2023, it faces substantial challenges, as outlined by the Vietnam Cashew Association (VINACAS). The sector is grappling with persistent economic and political turmoil, inflation, recession, stringent credit policies, fluctuating USD/VND exchange rates, diminishing consumer demand, escalating processing costs, and a plateauing production landscape within global production and supply chains.
Consequently, the export prospects for 2023 remain uncertain. VINACAS recommends a cautious adjustment of export revenue targets for the year to approximately $3.1 billion, a modest increase of $30 million compared to 2022 figures. Despite these formidable challenges, Vietnam maintains its position as a leading global producer of cashew nuts. The country’s cashew exports to the United States, India, and China significantly contribute to its agricultural exports and overall economic growth.
To surmount the challenges facing the industry, Vietnamese cashew exporters must adopt innovative strategies to enhance efficiency, reduce costs, and uphold the high quality of cashew products. It is imperative to focus on improving market access, increasing investment in research and development, and fostering stronger collaboration among industry stakeholders to ensure the resilience and sustainability of Vietnam’s cashew nut exports in the future.