Cashew nut exports recover towards the end of the year

The Import-Export Department under the Ministry of Industry and Trade estimated that Vietnam's cashew exports reached 80,000 tons in November 2022, which is valued at 458 million USD, an increase of 80.6% in volume and an increase of 72.4% in value compared to October 2022; compared to November 2021, this is an increase of 58.1% in volume and an increase of 39.1% in value.

Vietnam's cashew nut exports tend to recover and increase towards the end of the year because the cashew volume and turnover rise every month. The cashew nut exports in October increased sharply in both volume and value compared to September at 44,308 tons and 265.67 million USD, this is an increase of 15.5% in volume and 13.4% in value. On the other hand, cashew nut exports in October 2022 saw negative growth compared to October 2021; however, cashew nut exports in November 2022 experienced positive growth compared to November 2021.

With the growth recovery towards the end of the year, cashew nut exports in 2022 still fell in both volume and value, but the decrease was not as significant. Vietnam's cashew exports reached 380,536 tons in the first 9 months of 2022, which is valued at 2.28 billion USD; this is a decrease of 11.1% in volume and 14.4% in value compared to the first 9 months of 2021. By the end of November, Vietnam's cashew exports were estimated at 505 thousand tons, which is valued at over 3 billion USD, a decrease of only 5% in volume and 10.1% in value compared to November 2021.

The 3 biggest export markets for Vietnamese cashew nuts in 2022 include the US, China and the Netherlands. Vietnam's cashew nut exports to the US reached 119,391 tons, which is valued at 700 million USD, accounting for 28% of Vietnam's total volume and 27.5% of the total export turnover; exports to China reached 59,871 tons, which is valued at 356.18 million USD, accounting for over 14% of the total volume and total export turnover; exports to the Netherlands reached 45,228 tons, which is valued at 246.21 million USD, accounting for 10.7% of the total volume and 9.7% of the total export turnover.

Vietnam's cashew negative export growth in 2022 is caused by adverse effects from the world market. Most of Vietnam's cashews are exported to the US and the EU, so high inflation levels in these markets has had a significant impact on Vietnam's cashew nut trade.

Another major market for Vietnamese cashews, China, is still following the "Zero Covid" policy. Subsequently, the volume and turnover of Vietnamese cashews exported to the Chinese market has significantly reduced.

However, there are still positive signals for Vietnam's cashew exports. Namely, consumption demand is on a rising trend in the EU and China. According to the Chinese Customs, China's cashew imports in October 2022 has reached approximately 27.7 million USD, which is an increase of 18.7% compared to October 2021. After the first 10 months of 2022, China's accumulative cashew imports has increased by 61.9% over the same period in 2021, reaching 241.44 million USD. The largest suppliers of cashew nuts to China include: Vietnam, Togo, Myanmar and the Ivory Coast.

According to Binh Phuoc Department of Agriculture and Rural Development, although cashew output decreased in the crop year of 2021-2022, cashew exports from businesses in Binh Phuoc province remained at 1 to 1.2 billion USD, accounting for one third of the province's total export turnover and contributing nearly 25% of the total GDP of Binh Phuoc's agricultural sector.

Binh Phuoc province has the largest cashew growing area in Vietnam. The current total cashew area in the province is 151,124 hectares, accounting for more than 30% of the total area of perennial agricultural crops and 30.21% of the province's total agricultural production area. This area has increased by 9,632 hectares compared to 2021, including 147,729 hectares of harvesting area; the cashew output reached 170,500 tons.

There are at least 1,400 cashew nut processing facilities and workers harvesting in the farm in Binh Phuoc, contributing to stabilizing the lives of more than 71,000 cashew growing households. Binh Phuoc currently has 39 cashew production cooperatives with more than 500 members participating iand supporting each other in production linkages, and 46 cashew agricultural cooperatives with a total farming area of roughly 15,000 hectares. Most notably, there are 10 cooperatives engaged in linking cashew production with businesses.