The resilience of Vietnam’s cashew industry is evident once again as its cashew exports for the first quarter of 2023 surged to 122 thousand tons, valued at 708 million USD. This represents a noteworthy increase of 16.6% in volume and 14.2% in value compared to the same period in 2022. Despite facing various challenges, Vietnam’s cashew industry continues to flourish, thanks to the country’s adept crisis management and consistent efforts to enhance product quality and efficiency. With these encouraging statistics, Vietnam is poised to strengthen its position as a key player in the global cashew market.
Vietnam’s cashew sector navigates towards revival
After experiencing a notable decline in both volume and value in January 2023, the Vietnamese cashew export market rebounded positively in February of the same year. According to data provided by the General Department of Customs, cashew kernel exports from Vietnam surged to 34.3 thousand tons in February 2023, amounting to a value of $197.7 million. This represented a substantial increase of 25.8% in volume and 26.9% in value compared to the preceding month, January 2023. Moreover, there was a remarkable growth of 35.4% in volume and 31.2% in value when compared to the corresponding period in 2022.
March 2023 witnessed a remarkable upswing in Vietnam’s cashew exports, with a notable surge in both volume and value. During that month, a substantial 60,000 tons of cashew nut kernels were exported, amounting to a total value of $355 million. This represented an impressive increase of 75% in volume and 79.5% in value compared to February 2023, as well as a significant surge of 50.4% in volume and 48.6% in value when compared to the same period in 2022.
The first quarter of 2023 painted a promising picture for product exports in Vietnam, particularly in the cashew nut sector. Cumulatively, cashew nut exports for the quarter reached 122 thousand tons, with a total value of $708 million. This marked a substantial increase of 16.6% in volume and 14.2% in value compared to the previous year. These noteworthy figures underscore the flourishing state of the Vietnamese cashew export market, signaling a robust recovery in both volume and value.
Challenges persist for Vietnam’s cashew industry
The outlook for Vietnam’s cashew industry in 2023 is bleak, as stated by Vinacas Chairman Pham Van Cong. The sector anticipates ongoing challenges, including sluggish consumer demand and stagnant prices. Global cashew supply chains, particularly in Vietnam, face difficulties due to exchange rate fluctuations, rising processing costs, and decreasing consumption. Main consumer markets for cashew kernels are grappling with inflation, heightening concerns about inventory levels. Despite these obstacles, Vietnam’s cashew industry is aiming for cashew exports of $3.1 billion in 2023, a modest increase of $30 million from 2022. The industry’s strategy revolves around “reducing quantity while increasing quality.”
Vinacas Vice President Mr. Tran Van Hiep emphasizes that geopolitical conflicts, like the Russia-Ukraine dispute, significantly impact Vietnam’s cashew nut export and consumption. In 2021, Russia ranked as the 11th largest market, with nearly $62 million USD in export value. However, Russia’s exclusion from the SWIFT payment system has caused payment difficulties for Vietnamese exporters, particularly affecting Russian markets.
Additionally, inflation in the United States and Europe is spreading globally, leading to price hikes in goods and services. People are allocating more funds to essential needs, resulting in lower demand for non-essential items like cashew nuts. Consequently, increasing the price of cashew nuts is challenging in the current market conditions.
Despite being a vital aspect of Vietnam’s economy and the largest global exporter of cashew nuts, the industry faces significant disruptions. Geopolitical disputes and market fluctuations due to external factors such as inflation have impacted the industry. Industry leaders advocate for a comprehensive approach to address these issues, expressing optimism that effective collaboration among market stakeholders and policymakers can mitigate the challenges.
The Vietnam cashew industry falls short of its export target in 2022.
The Vietnam Cashew Association (VINACAS) convened a conference to assess the developments of 2022 and outline plans for the upcoming year. As per VINACAS’s report, the cashew industry in Vietnam had experienced a steady increase in exports over the past decade, spanning from 2011 to 2021. However, the year 2022 marked the conclusion of this growth trend, with the country falling short of its cashew export goal of $3.2 billion, even after reducing it by $600 million. Vietnam only achieved $3.07 billion in earnings from cashew exports.