Vietnam: Cashew industry faces risk of trade deficit

Published 2024년 10월 2일

Tridge summary

Vietnam's cashew exports experienced a significant growth in both volume and value in the previous year, with a trade surplus of $500 million in 2023. However, the industry is at risk of trade deficit due to rising raw material prices. The majority of these raw materials are imported from Africa and Cambodia, but drought and tighter export controls have led to a decrease in supply and a surge in prices. This has resulted in financial difficulties for many businesses, especially small and medium-sized enterprises (SMEs) that cannot compete with large FDI factories. The industry also faces challenges such as decreasing cashew tree cultivation areas and domestic growers shifting to more profitable crops.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Exports of cashews were up 22.9 per cent in volume and 21.8 per cent in turnover year-on-year, according to the General Department of Customs, with an average price per tonne of US$5,706. Cashew nuts are one of the exports which have created a large market for Việt Nam, however the industry faces the risk of trade deficit due to higher raw material prices. Exports of cashews were up 22.9 per cent in volume and 21.8 per cent in turnover year-on-year, according to the General Department of Customs, with an average price per tonne of US$5,706. Notably, the export turnover of cashew nuts still maintained growth, but the gap between the export value and the import turnover of raw materials has gradually narrowed. In 2023, the export turnover of cashew nuts reached $3.64 billion, while the import of raw materials stood at $3.1 billion. The industry achieved a trade surplus of $500 million. In the first eight months of this year, the cashew industry spent about $2.7 billion to import raw ...

Source: WTOCenter