The Vietnam Cashew Association is concerned that the current import-export policy will make domestic processing enterprises bankrupt and lose the national cashew brand that has been built for many years.
The Vietnam Cashew Association (Vinacas) has just sent a "request for help" document to the Vietnam Federation of Trade and Industry (VCCI); the Import and Export Department (Ministry of Industry and Trade).
According to Vinacas, for many years, Vietnam has been leading the global cashew supply chain and value chain, but that position is being shaken and threatened and will certainly happen if we do not change and stop the trend. from now on. This is the consequence of allowing the import of cashew kernels into Vietnam without applying measures to protect the domestic cashew processing industry.
For example, in January and February 2023, more than 10,158 tons of cashew kernels were imported into Vietnam (equivalent to 44,000 tons of raw cashew nuts). Before that, in 2022, there were 78,583 tons of cashew kernels imported into Vietnam (equivalent to nearly 350,000 tons of raw cashew nuts – this figure is larger than the total output of raw cashew nuts produced by Vietnam in a year).
Vinacas said that the policy of African cashew-growing countries (recently Cambodia) is to develop the domestic processing industry, gradually reducing raw exports. Therefore, they offer many preferential policies to attract investment in cashew processing factories. At the same time, for the export of raw cashew, they strictly regulate and monitor the minimum export price; high export taxes. On the contrary, they are exempt from tax cashew kernels for export. In Vietnam, both raw and kernel cashews when imported into the country for processing and export are exempt from tax.
Most of the imported cashew kernels are of low quality, and when exported, it will reduce the overall quality of Vietnam's cashew industry, gradually losing credibility, and market share, and losing the national brand name that has been built over the years.
With the above policy, in order to survive, Vietnam's large processing enterprises will switch to imports, narrowing production in the direction of focusing on the last few stages, and eliminating most of the invested modern lines.
Vinacas proposed: It is necessary to negotiate and sign bilateral agreements with each country on tax exemption for the import and export of each other's goods. If your country is tax-free for raw cashew exports to Vietnam, we will not need to change the current regulations.
However, if your country does not agree, Vinacas expects the Government, ministries, and branches to apply the principle of "reciprocity" in international relations, "no import tax exemption for cashew kernels imported into Vietnam". , instead, impose a 25% tax on shelled cashews. At the same time, impose a minimum import price for cashew kernels imported into Vietnam, as India is doing with imported cashew kernels.