Facing a range of external factors such as globally high inflation, economic recession, and the impact of the Russia-Ukraine conflict, the local cashew sector aims to rake in US$3.1 billion from exports this year.
According to details given by the Vietnam Cashew Association (Vinacas), last year witnessed Vietnamese cashew exports reach only US$3.07 billion, marking a decline of approximately US$600 million compared to the set target of US$3.8 billion.
This decline can be attributed to the impact of the global energy and food crisis coupled with China’s "Zero-COVID" policy last year which led to adverse effects on cashew exports, as well as other Vietnamese agricultural exports to the market.
Industry insiders have assessed that the cashew sector will continue to face numerous difficulties in the year ahead, primarily due to factors such as the Russia – Ukraine conflict, the State Bank of Vietnam (SBV)'s credit tightening policy, fluctuations in the USD/VND exchange rate, low consumption decline, and stagnant production.
Nguyen Minh Hoa, vice chairman of Vinacas, revealed that most importers in both the United States and the EU have yet to sign contracts to purchase cashew nuts until the end of the second quarter of the year.
Vinacas therefore recommends that local businesses flexibly seek niche markets, particularly Asian countries, as a means of replacing major markets such as the US, the EU, and China that have endured volatile fluctuations recently.
Vietnamese firms are also advised not to rush to import raw cashew nuts and to avoid risks at the beginning of the year, particularly as the price of W320 cashew nuts is on a downward trend. In addition, the price of the Ivory Coast’s raw cashew nuts is being offered at a high level.
Cashew processing enterprises are being asked to fully tap into the domestic market to overcome difficulties, according to experts.
Read more: Agricultural Products Industry Report