According to a report by the Vietnam Cashew Association (VINACAS), in the first nine months of 2026, Vietnam imported 119,143 tons of cashew kernels with skin and white kernels with skin, worth over 759 million USD, an increase of 41.02% in volume and 35.94% in value compared to the same period last year. Notably, the import growth rate of this product group was much higher than that of raw cashews. During the same period, Vietnam imported nearly 2.775 million tons of raw cashews, an increase of 8.18% in volume. This development shows that Vietnam's cashew import activities are no longer focused solely on raw cashews as before, but are expanding to include products that have undergone some processing in the country of origin. At the recent 15th Vietnam International Cashew Conference, many businesses and experts noted that the global cashew supply chain is witnessing a significant shift. Instead of primarily exporting raw materials, several major cashew-producing countries in Africa and Southeast Asia are increasing investment in processing plants to retain more value domestically. Cashew-producing countries want to retain added value. Mr. Vu Thai Son, General Director of Long Son Group, said that the expansion of processing capacity by many factories in Africa is impacting Vietnam's imported raw material structure. Previously, most raw cashews were brought to Vietnam for processing, but now domestic businesses also import pre-processed cashew kernels from raw material producing countries. This trend opens up new forms of cooperation and division of labor in production, but also places the Vietnamese cashew processing industry under increasing competitive pressure. Châu Phi tăng chế biến điều tại chỗ, ngành điều Việt Nam đối mặt áp lực mới - 1 The Vietnamese cashew industry is facing the challenge of raw material shortages as major growing regions in Africa and Cambodia increase local processing (Photo: Nam Binh). You may also like Vietnam's cashew industry maintains its position as the world's number one. Vietnam's cashew industry maintains its position as the world's number one. In 2025, Vietnam's cashew industry set a record with export turnover reaching US$5.4 billion; further affirming its position as the world's largest cashew kernel processing and exporting country for the 19th consecutive year, accounting for over 80% of the world's total cashew kernel exports. The cashew industry responds to the trend of shifting global supply sources. The cashew industry responds to the trend of shifting global supply sources. The expansion of processing in Africa and rising input costs are putting pressure on Vietnam's cashew industry, requiring businesses to strengthen their advantages in quality, cost-effectiveness, and reliability within the supply chain. Khơi 'dòng chảy' nguyên liệu và chuỗi giá trị để tạo bứt phá cho ngành điều Khơi 'dòng chảy' nguyên liệu và chuỗi giá trị để tạo bứt phá cho ngành điều (Chinhphu.vn) - Dù tiếp tục giữ vững vị thế quốc gia chế biến và xuất khẩu hạt điều số 1 thế giới với kim ngạch ấn tượng trên 5,4 tỷ USD, ngành điều Việt Nam đang đứng trước bài toán chiến lược: Làm thế nào để tháo gỡ áp lực giá điều thô nhập khẩu, thoát khỏi bẫy gia công sơ chế và nâng cao giá trị gia tăng thực sự cho nền kinh tế? According to Dansoko Madani, Vice President of the Guinean Chamber of Agriculture , the West African nation plans to export approximately 215,000 tons of raw cashew nuts by 2025, with around 150,000 farmers and households involved in production. However, the proportion of cashew nuts processed domestically is only about 2%. The majority of raw materials are still exported, with Vietnam being one of the important markets. According to Mr. Madani, Guinea has approximately 2 million hectares of land suitable for cashew cultivation. The government is promoting the expansion of raw material areas, supporting improved varieties, strengthening quality control, and attracting investment in processing. Guinea also called on Vietnamese businesses to cooperate in building processing plants right in the country to take advantage of local raw materials and develop cross-border supply chains. Similarly, Cambodia, one of Vietnam's largest suppliers of raw cashews, also aims to significantly increase its domestic processing rate. Ms. Kuoch Chanry, Vice President of the Cambodia Cashew Federation (CCF), stated that the country currently has 48 cashew processing facilities, of which over 60% are small and micro-sized. According to its cashew industry development policy, Cambodia aims to increase the domestic processing rate to 25% by 2027 and 50% by 2032. To attract businesses, Cambodia is implementing tax incentives and investing in logistics infrastructure. Some eligible projects may be exempt from taxes for 9 years, or even up to 15 years. With a raw cashew production of over 1 million tons, Cambodia has a significant advantage in terms of raw materials for developing the processing industry. Vietnam faces the need to change its competitive advantage. According to experts at the conference, the increase in cashew processing by cashew-producing countries does not mean Vietnam will immediately lose its role as a global processing hub. However, this shift could change the way supply chains operate in the coming years. Châu Phi tăng chế biến điều tại chỗ, ngành điều Việt Nam đối mặt áp lực mới - 2 African businesses come to Vietnam seeking opportunities for cooperation in developing the cashew industry (Photo: Vinacas). In 2025, Vietnam is expected to export approximately 798,000 tons of cashew kernels, generating over $5.4 billion in revenue, maintaining its position as the world's largest cashew kernel processing and exporting country for the 19th consecutive year, accounting for over 80% of global cashew kernel exports. You may also like China is increasing its purchases, but why is Vietnam's cashew industry still facing difficulties? China is increasing its purchases, but why is Vietnam's cashew industry still facing difficulties? Increased purchases from China and strong global demand for nuts are supporting the cashew industry. However, challenges related to technical barriers and raw material sources are also creating considerable pressure. Vietnam's cashew exports reached over $4.2 billion. Vietnam's cashew exports reached over $4.2 billion. According to the Vietnam Cashew Association (VINACAS), by October 2026, Vietnam had exported more than 600,000 tons of cashew kernels, earning over 4.2 billion USD. China and the United States were the two largest importing markets, accounting for 21.6% and 15.2% respectively. Vietnam spends $3 billion importing cashew nuts, with nearly 1 million tons imported from Cambodia. Vietnam spends $3 billion importing cashew nuts, with nearly 1 million tons imported from Cambodia. In just the first six months of the year, Vietnamese businesses spent over $3 billion importing raw cashew nuts. Of that amount, nearly 1 million tons of cashew nuts from Cambodia flowed into Vietnam. Technological advantages, production capacity, and international customer networks remain crucial foundations for Vietnamese businesses. However, as countries supplying raw materials gradually move the processing stages that were previously concentrated in Vietnam, the advantage based primarily on processing capacity will face greater pressure. In addition, policies restricting the export of raw cashews, preferential treatment for domestic processing, or price fluctuations in supplying countries can also affect the purchasing capacity of Vietnamese factories. According to Mr. Pham Van Cong, Chairman of VINACAS, current advantages do not guarantee the future position of Vietnam's cashew industry. He believes that businesses need to increase investment in technology, develop high value-added products, and expand cooperation with countries that supply raw materials. Instead of simply maintaining relationships involving the purchase and sale of raw cashews, Vietnamese businesses can participate in developing raw material areas, providing technical support, and controlling the quality of raw cashews. According to cashew industry experts, the sharp increase in cashew kernel imports is not enough to confirm that the entire supply chain is shifting, but along with the processing development strategies of cashew-producing countries, this signals that the international cashew production and trade model is changing.