Vietnam is a powerhouse in the global cashew industry, contributing nearly 80% of the world’s cashew supply. This stronghold has not only placed Vietnam at the forefront of cashew nut exports, but it has also underscored the country’s commitment to quality, efficiency, and innovation in cashew processing. Let’s explore some compelling numbers and trends that illustrate Vietnam’s leadership in the global cashew market and its impressive contribution to cashew production worldwide.
1. 80% of the World’s Cashews Come from Vietnam
Vietnam has established itself as the world’s top exporter of cashews, accounting for almost 80% of the global market share. This achievement underscores Vietnam’s commitment to ensuring consistent and high-quality cashew products for markets worldwide. For 16 consecutive years, Vietnam has held this position, reflecting the country’s expertise and dedication to meeting international demand.
2. Aiming for $4 Billion in Cashew Nut Exports in 2024
Vietnam’s cashew nut exports are on track for a record-breaking year, with an ambitious target to reach $4 billion in revenue by the end of 2024. This would mark a significant increase from $3.6 billion earned in 2023. The growth not only highlights the demand for Vietnamese cashews but also illustrates the country’s ability to scale production efficiently to meet market needs.
Aiming for $4 Billion in Cashew Nut Exports in 2024
3. Importing Raw Cashews from Neighboring Countries
To support its thriving cashew processing industry, Vietnam sources a considerable volume of raw cashew nuts from other countries, particularly from Cambodia. In the first seven months of 2024, Vietnam spent over $1 billion on importing nearly 790,000 tonnes of raw cashew nuts from Cambodia. This import volume accounts for approximately 47% of Vietnam’s total cashew imports, highlighting Cambodia’s role as a strategic supplier in the Vietnamese cashew production pipeline.
4. 350,000 Tonnes of Cashews Exported in Six Months
In the first half of 2024, Vietnam exported 350,000 tonnes of processed cashew nuts, generating $1.92 billion in revenue. This reflects a 25% increase in volume and 17.4% increase in value compared to the same period in 2023. The impressive growth showcases Vietnam’s responsiveness to the ever-growing global demand for cashews and its efficiency in maintaining high production standards.
5. A Wide Range of Cashew Products
Vietnam’s cashew production spans multiple product categories, catering to diverse markets across the globe. Some of the main categories include:
- Whole Cashew Kernels: Mainly roasted or salted, these are popular in the U.S. and EU markets.
- Broken Cashew Kernels: Often used by the food industry in products such as chocolate, pastries, and biscuits.
- Cashew Nut Oil: Extracted from the outer shell, cashew oil finds applications in cosmetics and food preparation, with China, South Korea, and Japan as major buyers.
- Cashew Shell Oil: Primarily exported to China, India, and Laos for industrial applications.
A Wide Range of Cashew Products
6. Vietnamese Cashews: High Standards in Processing
Vietnam follows stringent quality protocols to maintain its competitive edge in the global cashew market. The processing of cashews in Vietnam includes several rigorous stages:
- Collection and Drying: Raw cashew nuts are collected and sun-dried to ensure minimal moisture.
- Steam Roasting: This step makes it easier to remove the hard outer shell.
- Shell Cutting and Peeling: Skilled workers carefully remove the shell to retain the quality of the nut.
- Grading: Cashew kernels are classified according to international standards, ensuring consistency in quality.
- Packaging: Finished products are packed to meet international export standards.
These high standards have allowed Vietnam to maintain its reputation as the world’s premier supplier of high-quality cashews.
7. Increased Imports Due to Raw Material Dependency
Despite being the world’s top cashew exporter, Vietnam relies heavily on raw material imports. In the first half of 2024, Vietnam imported nearly 1.5 million tonnes of cashews valued at $1.8 billion. Cambodia alone supplied over 780,000 tonnes, accounting for more than 50% of Vietnam’s imported raw cashews. This dependency highlights the importance of neighboring countries in sustaining Vietnam’s cashew production.
8. Quality Concerns in the Domestic Market
The Vietnamese cashew industry is currently tackling quality concerns around domestically sold cashews. For instance, the Bình Phước Cashew Association has voiced concerns over counterfeit cashews being sold under the “Bình Phước Specialties” label. These products, often of inferior quality, are misleadingly marketed as genuine Vietnamese cashews, which could affect consumer trust and the reputation of Vietnamese products in both domestic and international markets.
Quality Concerns in the Domestic Market
9. Collaboration with Neighboring Countries
To secure a steady supply of raw cashews, Vietnamese companies are increasingly partnering with countries like Cambodia and Laos. According to Pham Van Cong, chairman of the Vietnam Cashew Association, these collaborations involve technology transfer and seed development, enabling Vietnam to bring high-quality raw materials back for processing. This strategic move is crucial to maintaining Vietnam’s competitive advantage and expanding production capabilities.
10. Cambodia’s Rise as a Cashew Producer
Cambodia is now the world’s second-largest producer of raw cashews, with a production volume of 830,000 tonnes in mid-2024. Recognizing the demand, Cambodia is also focusing on building its cashew processing capacity, with a national target to increase from 5% to 25% processing capacity by 2027 and 50% by 2032. Vietnam’s close relationship with Cambodia is vital to maintaining a reliable source of raw materials while also fostering regional economic growth.
Join the Vietnamese Cashew Market Revolution
The Vietnamese cashew industry has proven itself as a global leader, from its production scale to its export reach and processing expertise. With nearly 80% of the world’s cashews originating from Vietnam, this sector is a beacon of efficiency, quality, and growth potential. For those interested in exploring Vietnam’s agricultural exports, investing in Vietnamese products, or connecting with top manufacturers, now is the time to act.
Join the Vietnamese Cashew Market Revolution
Are you ready to discover the potential of Vietnamese cashews? Connect with VietThai Sup Man to visit local cashew manufacturing facilities, gain insights into the booming Vietnamese cashew industry, and establish valuable partnerships in one of the world’s most dynamic agricultural markets.
