W50 Cashew Update: Vietnam Raw Cashew Imports Surge in 2023 and Sustained Global Supply in 2024

Ivory Coast and Cambodia Lead Vietnam's Raw Cashew Imports in 2023

Vietnam witnessed a substantial surge in raw cashew nut imports, reaching nearly 2.7 million metric tons (mmt) valued at USD 3 billion, marking a 46.5% increase in volume and a 19.2% rise in value compared to the previous year. The top five raw cashew nut supply markets for Vietnam are Ivory Coast, Cambodia, Nigeria, Ghana, and Tanzania. Notably, imports from Ivory Coast and Cambodia constituted 57.5% of the total import value. Vietnam's increased imports of raw cashew nuts in 2023 are attributed to low domestic supply, meeting only about 30% of processing capacity. In addition, the decreasing prices of imported cashew nuts boosted businesses' bulk purchases.

Furthermore, Vietnam's cashew import market structure witnessed changes in 2023, with increased imports from Ivory Coast, Nigeria, and Ghana and declined imports from Cambodia and Tanzania. Ivory Coast emerged as the leading contributor, with cashew imports amounting to 850 thousand metric tons (mt) valued at USD 919.3 million, marking an 87% year-on-year (YoY) increase in volume and a 56% YoY rise in value. Conversely, cashew imports from Cambodia experienced a decline of nearly 14% YoY in volume and over 23% YoY in value, reaching 613 thousand mt valued at about USD 835 million. Despite the decline, Cambodia remains Vietnam's second-largest raw cashew supplier.

Lastly, a representative from the Vietnam Cashew Association stated that the global supply of raw cashew nuts is sufficient to meet processing needs for the next nine months. There should be no shortage of raw materials if the 2024 crop proceeds as planned.

Vietnamese and Ivorian Cashew Associations Collaborate to Enhance Industry Efficiency

Representatives from diverse entities convened at a recent conference hosted by the Bình Phước Cashew Association and the Association of Cashew Exporters of the Republic of Ivory Coast, are aiming to synergize efforts and enhance the commercial efficiency of the cashew industry. Bình Phước is known as the cashew capital of Vietnam, playing a crucial role by accounting for almost 50% of the national cashew cultivation. Ivory Coast is a major producer of cashews, with an annual production of 1.2 mmt of raw materials. It is also the world's leading exporter of raw cashew nuts and ranks second in cashew kernel production. The discussions emphasized a shared commitment to standardizing contracts, minimizing disputes, and elevating product quality and pricing, underlining a dedication to fostering a more streamlined and collaborative cashew industry.

Challenges and Prospects in Vietnamese Cashew Industry for 2024

Vietnam’s cashew industry anticipates favorable prospects in 2024 with increasing demand from global markets such as the European Union (EU) and Japan. However, the industry also faces various challenges, including raw material shortages, high-interest costs, and a shift towards eco-friendly production. Furthermore, cashew cultivation areas are reducing as farmers switch to crops with higher margins, which poses a significant threat to the industry's raw material supply.

To address these issues, the Vietnam Cashew Association suggests that domestic enterprises collaborate and regulate the import and processed cashew kernel prices. They also recommend implementing an open loan support policy and a flexible foreign currency collection mechanism. Additionally, streamlined verification procedures are necessary to avoid potential business difficulties and contract losses, especially with customers such as Japan, who have concerns over value-added tax refunds.