According to the General Department of Customs, Vietnam exported over 723,800 tons of cashew kernels in 2024, marking a 12.4% increase in volume and a 19.2% rise in value compared to the previous year. This milestone represents the highest export revenue in the history of Vietnam’s cashew industry. For over 30 years, Vietnam’s cashew exports have grown steadily. In 2006, the country’s cashew export revenue reached $520 million, making it the world’s top supplier. By 2010, Vietnam had surpassed the $1 billion mark, officially joining the agricultural sector’s “billion-dollar club.” In subsequent years, export revenue soared - rising from $2.84 billion in 2016 to $3.36 billion in 2018. Although the industry experienced slight slowdowns between 2019 and 2020, Vietnam has consistently maintained a trade surplus in cashew exports for three decades. By 2024, Vietnam’s cashew exports had not only rebounded but had also surpassed the $4 billion milestone for the first time, achieving a trade surplus of $1.12 billion. "Despite challenges in production and market demand, Vietnam remains the world's largest cashew kernel exporter, accounting for over 80% of the global supply," said Tran Huu Hau, Deputy Secretary-General of the Vietnam Cashew Association (Vinacas). Vietnam’s competitive edge in cashew processing The strength of Vietnam’s cashew industry lies in its world-leading processing technology - developed domestically by Vietnamese engineers. With approximately 500 processing companies and an annual capacity of 4 million tons of raw cashews, Vietnam’s cashew kernels are exported to over 90 countries and territories. Notably, Vietnamese cashews dominate imports in key markets such as the U.S., Australia, China, and the Netherlands, with market shares ranging from 80% to 99%. In 2024, the U.S. alone spent nearly $1.2 billion importing cashews from Vietnam. Opportunities and challenges ahead According to Vinacas, Vietnam has led the global cashew supply chain for years, with the highest-quality kernels in the industry. The demand for cashews continues to grow, fueled by the food processing industry and shifting consumer preferences toward healthier, convenient snacks. The global cashew market is projected to reach $8.14 billion in 2025 and expand to $11.67 billion by 2033. While this presents significant opportunities for Vietnam, securing a stable raw material supply remains a major challenge. Over the years, Vietnam’s domestic cashew cultivation area has been declining. From 440,000 hectares in 2007, the planted area shrank to 302,500 hectares by 2020. In 2024, cashew plantations covered approximately 316,100 hectares, with an estimated yield of 348,000 tons. Meanwhile, raw cashew imports have surged from $1.66 billion in 2016 to $3.33 billion in 2024, with a peak of $4.185 billion in 2022. This increasing reliance on imported raw materials raises concerns about long-term industry sustainability. Adding to the challenge, major cashew-producing countries in Africa and Cambodia are implementing policies to retain more of their cashew supply for domestic processing. By imposing higher export taxes on raw cashews and attracting investment in local processing plants, these nations are gradually reducing their supply to international markets. In December 2024, Cambodia launched its first cashew processing plant for export. The facility has already begun shipping processed cashew kernels to China, with plans to expand to the Middle East and Europe. Ensuring sustainable growth for Vietnam’s cashew industry To secure long-term growth, industry leaders emphasize the need to strengthen Vietnam’s raw material supply chain. "Beyond expanding domestic cultivation, Vietnam must focus on increasing value within the global cashew supply chain," said Dao Thi Lanh, President of the Binh Phuoc Cashew Association. She advocates for a shift from exporting raw kernels to producing processed cashew-based food products for direct supermarket distribution. Agriculture Minister Le Minh Hoan also stressed the importance of diversifying farmers' income sources to sustain cashew cultivation. "Farmers are switching to durian because it generates $41,000 per hectare, whereas cashew farming only brings in about $1,400 per hectare. Instead of restricting their choices, we need economic incentives," he noted. One promising solution is integrating additional revenue streams within cashew farms, such as cultivating lingzhi mushrooms alongside cashew trees. Farmers could also benefit from carbon credit trading, as low-emission cashew farming could generate up to $400 per hectare in carbon credit revenue. "Developing sustainable raw material zones and transitioning to a green economy are top priorities," said Tran Van Phuong, Deputy Director of Binh Phuoc's Department of Agriculture and Rural Development. "If executed well, this strategy will enhance farmers' incomes, attract investment in high-value cashew processing, and strengthen Vietnam’s global leadership in the cashew industry."