<p></p><p>In the first half of this year, 600-700 small cashew processing factories have closed due to a lack of raw materials and capital for production, causing a headache for the sector to achieve the export goal of 3.5 billion USD set for this year.</p> <p>Nearly 500 cashew businesses in southern Binh Phuoc province, one of the largest cashew growing localities in the country, halted their operation after the local cashew season finished. </p><p>Hoang Quoc Dung, Director of Hai Hung company, Binh Phuoc province said: "This year, cashew had a bad harvest, so we could not have enough raw materials for our production. Other companies have dealt with the same situation.” </p><p>This is the second year locally-grown cashew has coped with a poor harvest when it covers up to 30 percent of businesses’ raw material needs. </p><p>As such, they are seeking to borrow 800 million USD from banks to buy 500,000 tonnes of raw materials abroad for processing and exports from now until the end of the year. </p><p>However, almost all banks have gone quiet, with no word as to whether they support the loans. </p><p>Phan Dinh Tue, Vice Director General of Saigon Thuong Tin Commercial Joint Stock Bank told reporters: "Many businesses have been operating inefficiently and met with a lot of difficulties. If they borrow money from banks, their situation will affect the banks.” </p><p>Up to 90 percent of cashew processing factories are micro and small-sized ones. Their operation is seasonal. When the local cashew season is bad, raw material import will skyrocket by 25 percent, sparking a crisis for the sector. </p><p>Factories operated with total capacity of 1.6 million tonnes of raw materials a year, creating jobs for hundreds of thousands locals in southern Binh Phuoc, Long An and Dong Nai provinces. </p><p>Cashew processing businesses should work with each other to cope with changes in the market. </p><p>In 2017, the cashew sector surpassing rice, coffee and rubber to make revenue of 3.6 billion USD.<br></p><p></p>