<p>During the 2009-2012 period, the Vietnam Cashew Association (Vinacas) exported 750,000 tons of cashew nuts and 110,000 tons of cashew oil, achieving an export value of US$4.7 billion. However, the sector is facing a lot of difficulties that need immediate solutions.</p> <p>cashew-nut-exports-hit-us4-billion-806766-tuyen-chon-hat-dieu-tai-lam</p> <p><strong>Medium economic achievements</strong></p> <p>According to Vinacas, enterprises such as Thao Nguyen, Nhat Huy, Donafoods, and Don On Foods already engaged in the processing of cashew nuts have had their products enter US, Canadian, Thai, and Chinese distribution channels.</p> <p>According to the Ministry of Agriculture and Rural Development, the total area devoted to cashew nut growing decreased and produced unstable yields during the 2009-2012 period, only about 1.15 million tons per ha and about 40 percent of the total area created sufficiently high yields. The reasons for these shortcomings were due to lower economic returns from the nuts in comparison to other forms of plants while the construction of industrial parks, urban areas saw a decline in available land. Vietnamese cashew nuts are exported to over 100 countries and territories across the world. The US remains the largest export market for Vietnam, accounting for 35 percent market share, followed by China 20 percent, and EU 27 percent.</p> <p>During the 2009-2012 period, some 300 enterprises exported cashews, of which 80 percent of exporters attained less than US$5 million in annual export value. The rates of domestic consumption and export of high value added exports have also increased continually in recent years and reached 4 percent of the total output last year.</p> <p>From the second quarter of 2011, the price of cashew exports started to decline due to weak purchasing power in some key markets, especially the EU. In addition, the sector also faced many commercial disputes. For the domestic market, although many companies actively invested in producing high value added cashew products; domestic consumption was fairly slow, growing at around 2.7 percent last year. This was because of a lack of programs to stimulate domestic consumption, plus also several obstacles including multi-level purchasing system, low purchase prices, and the loose link between cashew growers and producers. These factors combined to see Vietnam fall behind leading in cashew growers such as India, Brazil, and Ivory Coast.</p> <h2 style="font-style:normal">Solutions for the 2013-2015 period</h2> <p>Based on the potential advantages of cashew nut growing and consumer trend towards more healthy diets, the sector has devised a development plan for the 2013-2015 period. In which, the sector aimed to process 900,000 tons of domestic raw cashew nuts and more than 1 million tons of cashew imports based on environmentally friendly techniques and technology to ensure food quality and safety. In terms of exports, the sector aimed to achieve a total value of more than US$4 billion during the 2013-2015 period, achieving annual average export values of US$1.4-1.5 billion. By 2015, the proportion of high value added cashew products will account from five to seven percent of total outputs.</p> <p>Vinacas has already launched several solutions to overcome these difficulties, expand markets at home and abroad at a recent review meeting. As for the exports, cashew exporters should focus on markets such as the US, EU, China, and Australia while launching export promotion programs in the Middle East, Eastern Europe, North Asia and ASEAN countries; consider their own financial resources and to promote direct sales to importers, distributors; actively participate in trade promotion events; minimize trade fraud in purchasing raw cashew nuts; diversify products and strive to produce high value added products and by-products; strengthen distribution, wholesale and retail activities in major cities nationwide, and promote the nutritional value of cashew nuts to consumers.</p> <p>With reference to the raw cashew nuts, cashew enterprises should focus on several clean and organic planting models and replicate them in other key material areas across the country. The links between cashew growers and producers should be tightened via the formation of clubs and cooperatives in order to avoid price fluctuations and rises. For cashew nuts imported from Cambodia, export processing enterprises should consider proper investment, set up joint ventures, and build suitable warehouses and factories, and manage the direct purchasing of cashew nuts from local farmers.</p> <p>According to former Chairman of Vinacas Nguyen Thai Hoc, both cashew growers and producers need support from relevant agencies in terms of national and international trade promotion activities including supporting corporate brand building, sectoral promotion, an annual international customers conference, and funding for the triennial Golden Cashew Festival. Relevant agencies should reduce the import duty on raw cashew nuts to 0.5 percent in order to encourage domestic cashew processors in the context that major cashew producer countries like India and Brazil are applying a zero percent tax rate on imported raw cashew nuts, while Vietnamese export processors must still import up to 50 percent of raw cashew nuts. During the 2013-2015 period, the sector may have to import about 1 million tons of raw cashew nuts from countries in West Africa, East Africa, and South East Asia.</p> <p>In addition, the sector needs more credit sources for purchasing, processing and exporting cashew nuts. Vinacas in particular will look for preferential credit lines from the Government Development Fund, the Vietnam Development Bank, and the Vietnam Bank for Agriculture and Rural Development</p> <p> </p>