Weak Demand Compounded by High Costs, Over Half of Vietnam's Cashew Processing Enterprises Halt Production

Exporters are facing pressure from all directions. International buyers (especially those from Europe and the United States) are postponing bulk purchases while waiting for trade policies, including the latest US tariff adjustments, to become clear; meanwhile, intensifying global competition and persistent weak demand continue to suppress export prices. To make matters worse, raw material costs remain high—with major producing countries like Vietnam experiencing severe crop failures and abnormal weather, further straining an already fragile supply chain and dramatically reducing processing volumes. The industry's difficulties are already visibly apparent. Over half of cashew processing enterprises in Vietnam (from small workshops to large exporters) have been forced to suspend operations due to shrinking profit margins. A new policy implemented domestically in Vietnam starting July 1 has further burdened the industry: a comprehensive 5% value-added tax on domestic cashew sales has ...