Vietnam aims to increase cashew exports in the Chinese market

According to the Agency of Foreign Trade (MOIT), cashew nut exports to China increased very strongly in the first months of this year. In the first quarter, cashew exports to China reached nearly 24.000 tons, worth USD 131 million, an increase of 104% in volume and 76% in value compared to the first quarter of 2023.

Among the ten most significant markets for Vietnamese cashew nuts, the growth rate of the Chinese market is second only to the Russian market. It far exceeds the growth rate of other markets such as the US, UAE, Germany, UK, Canada, etc.

Thus, in the first quarter of this year, the Chinese market continued its strong growth momentum in 2023. According to the Vietnam Cashew Association (Vinacas), 80.000 tons of Vietnamese cashew kernels were exported to Vietnam in the past year. China, worth nearly USD 462 million, increased 57% in volume and 51% in value compared to 2022.

The strong growth of the Chinese market shows that demand for cashew nuts is on the rise again after the country scrapped the Zero Covid policy. Besides, in the first quarter of 2024, there have been promotion programs for cashew kernel consumption in China. Therefore, cashew consumption in this market is quite good.

The Agency of Foreign Trade said the Chinese market favors Vietnamese cashew nuts in Asia thanks to stable year-round supply and good product quality. In addition, the Asian region is not affected by tensions in the Red Sea, which is a good condition for our country's cashew export.

Mr. Vu Thai Son, Chairman of Binh Phuoc Cashew Association, also said that 2024 the cashew consumption situation in Asian countries, especially China, Japan, and Korea, will be better and brighter than in 2023. The reason is that Asian markets are less affected by the Russo-Ukrainian War, and countries such as China, Japan, and Korea are promoting consumer market development.

In addition to cashew kernels, the Chinese market is also increasing imports of value-added products from Vietnamese cashew nuts. Mr. Son said that in the past year, his company had sold many value-added products to China, such as salted roasted cashews, chili garlic cashews, spiced cashews, sesame-coated cashews, and honey cashews.

China is currently the second-largest market for Vietnamese cashew nuts after the US. Given the importance and growing demand for cashew nuts in this market, Vinacas will organize a trade delegation in the Chinese market this year.

It is expected that in August of this year, Vinacas will organize a seminar and meeting with Chinese grain industry traders in Hangzhou, thereby finding opportunities for cooperation and trade development between the two sides, Vietnamese cashew producers and processors, and potential Chinese customers.

This event also aims to promote the Vietnamese cashew brand, achievements, and innovations in cashew processing technology to help Chinese traders and consumers have a comprehensive and accurate view of the Vietnamese cashew industry.

Coming to the event, Chinese customers will see the development potential and the processing and export capacity of Vietnam's cashew industry, especially in moving towards "cleaner production" and following international standards and world consumption trends.

In addition to buying and selling cashew kernels, Vietnamese businesses will promote and promote products with high added value, such as salted fried cashews, roasted cashews, spiced cashews, honey cashews, and candies, cashew products produced organically.

Vinacas hopes to enter direct sales contracts between Vietnamese cashew businesses and large Chinese roasters, retail groups, and supermarkets, helping Vietnamese cashew nuts reach the market's end users in the Northern region of China instead of mainly only accessing intermediate importers concentrated in the Southern region of China, bordering Vietnam. 

The official export of cashew nuts through the seaport systems of Vietnam and China is also expected to be increased by both sides, replacing the traditional method of exporting by road through border gates in provinces such as Lang Son, Lao Cai, and Quang Ninh.

By organizing a trade delegation in the Chinese market, Vinacas also aims to receive opinions and answer questions and recommendations from Chinese customers to have the best measures and solutions to harmonize, tightening the relationship between Chinese importers and Vietnamese exporters. 

The most common goal is to increase the export turnover of Vietnamese cashew nuts to China and the North Asian region, increasing production and business efficiency for Vietnamese cashew processing enterprises.