With Cambodia and several countries in Africa promoting raw cashew production and improving the deep processing of cashew nuts, Vietnamese import and export activities are facing fierce competition, according to industry insiders.

Previously, the global cashew market was mainly supplied by both Vietnam and India, of which the Vietnamese side accounted for more than 80%.

Recently, African countries have become increasingly prominent suppliers of cashew nuts, causing the Vietnamese market share of the product in the world market to shrink.

In a recent international conference, N’Guettia Assouman, chairman of the Ivory Coast Cashew Exporters Association revealed that with 25% of the world’s raw cashew output, the Ivory Coast ranks second in terms of cashew imports and exports globally, only behind Vietnam.

Vietnam is currently consuming 65% to 85% of the Ivory Coast’s raw cashew output, while the African country’s cashew industry is gradually modernizing production and processing to boost exports to demanding markets such as the United States and the EU.

Meanwhile, Mohamed Diaoune, chairman of the Guinea Cashew Industry Association pointed out that the Republic of Guinea has set up stable raw material areas to supply cashew nuts to Vietnamese businesses, noting that Vietnam has so far been one of Guinea’s major customers of raw cashew nuts.

According to details given by experts, Africa accounts for 57% of global raw cashew production. The robust growth of the cashew production and processing industry in Vietnam and other African countries has led to fierce competition in the global market.

Pham Van Cong, chairman of the Vietnam Cashew Association (VINACAS), said despite being a cashew processing hub, Vietnam does not have raw material areas, with the domestic growing area and output increasingly shrinking.

Recently, African countries have issued policies aimed at limiting the sale of raw cashew nuts to develop the domestic cashew processing industry, thereby putting more pressure on raw cashew prices moving forward.

Facing these challenges, local manufacturers and processing enterprises are required to adjust the operation of the cashew supply chain to develop the cashew industry sustainably in the time ahead.

Source: https://vietnamnet.vn/en/