Cashews, a key export commodity of Vietnam, continue to play a significant role in the country’s trade with the United Kingdom. Despite shifting market dynamics and stringent trade policies, Vietnam’s position as a leading supplier of cashews to the UK remains strong, bolstered by the UK-Vietnam Free Trade Agreement (UKVFTA) and rising demand for high-quality nuts in the British market. Data from Vietnam’s General Department of Customs showed that the country exported 17,000 tonnes of cashews in the first 10 months of 2024, valued at US$87.3mil, a year-on-year (y-o-y) increase of 9.6% in volume and 9.9% in value. This growth was driven by Vietnam’s solid processing capacity and global dominance in cashew production, coupled with the UK’s reliance on imports for its cashews. According to the International Trade Centre, the UK imported 6,060 tonnes of cashews in the first quarter of the year, valued at US$33.48mil, marking a 20.4% increase in volume and 14.4% in value y-o-y.Vietnam accounted for 91.63% of the UK’s total cashew imports during this period, reinforcing its position as the dominant supplier. However, the average import price of Vietnamese cashews to the UK declined by 3.3% to US$5,484 per tonne, reflecting broader price trends in the global market. Despite this, Vietnam’s market share grew due to its ability to maintain competitive pricing and consistent supply, while other suppliers like the Ivory Coast and India saw price drops, and contributed relatively low volumes. “The UK stands out as a crucial market, with a population of more than 67 million, high income levels and consistent consumer demand,” said Vietnam Cashew Association general-secretary Dang Hoang Giang. “Each year, the UK imports between 17,000 tonnes and 19,000 tonnes of various types of cashew nuts, with a trade value of nearly US$100mil annually, positioning it among Vietnam’s top 10 export markets for cashew nuts.” The UKVFTA offers substantial benefits for Vietnamese cashew exporters. The agreement eliminates tariffs on both raw and processed cashew products, providing a competitive edge over non-FTA countries. However, compliance with stringent rules of origin is crucial. WWhether they are shelled or not shelled, the key to determining their origin under the UKVFTA is important. Also, the amount of non-native sugar used should not exceed 20% of the product’s weight. To meet the UKVFTA’s origin criteria, shelled or not shelled cashew nuts must have a pure origin in Vietnam. The UK market offers advantageous factors, including consumer awareness of health and the consumption of plant-based products with high nutritional value, such as organic cashews, said Giang. According to Statista, the UK market, valued at US$1.56bil in 2023 for all nut products, is projected to grow annually by 4.99% through 2028. British consumers are increasingly drawn to flavoured and roasted cashews for snacking and unsalted and raw cashews as a healthier alternative to salted snacks. To capitalise on these trends, exporters must adapt to evolving consumer preferences by offering diverse product options, including premium, health-focused and ready-to-eat varieties. However, challenges persist. The UK enforces strict food safety standards, aligned with the European Union and the United Nations Economic Commission for Europe (UNECE) regulations, Giang said. The head of cashew association added that logistics costs and intense competition are also challenging. “Shipping to the UK is expensive due to long distances, raising product prices and marketing competitiveness. “In the UK market, Vietnamese businesses compete fiercely on price and quality against not just local produce but also goods from India, Brazil and some parts of Africa,” said Giang. Adherence to quality, hygiene and sustainability criteria is essential for market entry. Understanding the distribution landscape, ranging from retail chains to speciality stores, is also critical to penetrating the market effectively. Giang suggested Vietnamese exporters implement advanced processing technologies to meet international standards, ensuring consistency and safety, while focusing on branded, value-added products for premium retail channels rather than bulk commodity sales. To leverage UKVFTA benefits, companies need to fully understand and comply with rules of origin to maximise tariff advantages, he said, adding that investing in market studies to identify trends and establish direct connections with UK importers and distributors is also necessary. “Digital marketing, including collaborations with UK-based influencers and e-Commerce platforms, can widen reach and visibility. Participation in UK food fairs and exhibitions can also facilitate direct connections with distributors and retailers,” Giang said. Additionally exporters should highlight eco-friendly production methods to appeal to socially conscious consumers.