HANOI. In the first seven months of the year, Vietnam has already managed to increase its exports – the hoped-for export target for 2024 is USD 3.8 billion. However, the country is also dependent on high RCN imports.
Imports exceed 3 million mt
Vietnam is by far the most important exporter of cashew nuts. However, in order to maintain this standard, the Southeast Asian country is dependent on high imports of raw cashew nuts (RCN), as only around 10% of the required quantity is harvested domestically. According to the Vietnam Cashew Association (Vinacas), imports therefore amount to more than 3 million mt per year. A large proportion of around 2.2 million mt is imported from West Africa, and Cambodia is also an important supplier. According to preliminary statistics from the Ministry of General Customs, cashew imports to Vietnam reached 291,413 mt in July with a value of more than USD 346 million, representing a volume increase of 1.9% and a value increase of 7% compared to the same month last year.
Overall, imports in the first seven months of the year totalled more than 1.7 million mt with a value of USD 2.1 billion. This is 2.5% more in volume and 0.6% more in value than in the same period last year. In this period, Cambodia was the most important supplier of RCN to Vietnam with 786,000 mt (+34% yoy). It was followed by Côte d'Ivoire with 325,000 mr (+20.5% yoy) and Ghana with 201,000 mt (+13% yoy). Prices for both domestic and imported RCN rose after the 2024 cashew harvest due to lower supply as a result of declining acreage in Vietnam.
Hopes and challenges
Vietnam's cashew exports this year are once again impressive. According to Vinacas, the country shipped a total of 451,600 mt of cashews overseas by 15 August, a good 25% more than in the same period last year. The turnover achieved totalled USD 2.55 billion. The average export price was USD 5,611/mt, 3.3% less than last year. The export target for this year is USD 3.8 billion, which would be USD 200 million more than in 2023, when 466,135 mt of cashews worth USD 3.6 billion were exported. The Ministry of Industry and Commerce is optimistic that the hoped-for export target will be achieved, but also emphasises that the cashew industry is facing challenges such as the procurement of RCN, rising production costs and the switch to sustainable production.
Stable prices in India
In India, the second most important cashew kernel producer after Vietnam, prices have remained relatively stable in recent weeks. Most recently, cashews, W320 cost USD 7,950/mt FOB India.