HCMC – The Vietnam Cashew Association (VINACAS) has adjusted down its 2023 cashew export target by US$50 million to US$3.05 billion.
During a conference on the cashew market development held on July 26 in HCMC, VINACAS expressed concerns about potential woes, particularly in the final quarter of 2023 and the first quarter of 2024.
“The industry’s growth could be at risk if the global economic downturn continues, leading to reduced consumer demand for non-essential commodities like cashews,” it said.
Despite these difficulties, cashews remain a critical agricultural export earner for Vietnam, displaying positive growth and securing a significant position in the agricultural export landscape.
VINACAS presented an optimistic scenario, highlighting growth potential due to increased cashew consumption and depleted inventory in major consumer markets like the U.S. and Europe, which can drive up demand towards the end of the year.
To support domestic processing businesses and maintain a level playing field, VINACAS’s Chairman Pham Vang Cong called on the Government to consider and implement suitable import policies for cashews. The association emphasized the importance of collaboration between ministries, departments, and localities to provide support in areas such as access to bank loans, taxation, and customs for cashew enterprises.
VINACAS proposed an aggressive export promotion strategy, including exploring new markets, enhancing product quality, and establishing a distinctive Vietnamese cashew brand.
Vietnam’s free trade agreements with key markets provide an opportunity for targeted marketing efforts to raise awareness and attract consumers to Vietnamese cashew products.
The association also recommended the Ministry of Industry and Trade develop programs supporting investments in technology, equipment, and digital transformation for cashew enterprises.
Despite being a major global cashew producer, Vietnam’s cashew output falls short of meeting both domestic consumption and export demands.
VINACAS stressed the importance of stable and long-term planning, surveying, and evaluating cashew cultivation regions, while also strengthening market intelligence efforts to support cashew enterprises facing challenges in foreign markets.
In the first six months of 2023, Vietnam exported over 279,000 tons of cashews worth around US$1.6 billion. The figures represent respective growth of 7.65% and 9.49% compared to the same period last year.
