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  • Cashew nut exports to the EU: Great opportunity, high competition 05/30/2022

    May 30th, 2022

    Since the EU-Vietnam Free Trade Agreement (EVFTA) took effect until now, cashew nut exports to the European market have recorded impressive growth. There is a high level of competition in the European Union However, in order to maintain and strengthen the position of Vietnamese cashew nuts in this market, exporting enterprises need to invest more properly in market research, product diversification as well as brand building. Top export market According to the Ministry of Industry and Trade, in 2021, the EU is the second largest cashew nut export market of Vietnam with the export proportion accounting for 23% of the total volume and 22% of the total value of the industry. Specifically, cashew nut exports to the EU reached 135 thousand tons, worth 816 million USD, up 16.5% in volume and 8% in value compared to 2020. “Europe is a very important market. important to Vietnam's cashew industry even during the recent Covid-19 period. In 2021, the countries that import the most cashews in the European region include: the Netherlands, Germany, the UK, France, Spain, Finland, Belgium ... ", Mr. Dang Hoang Giang, General Secretary of the Vietnam Cashew Association Nam said. From the perspective of the Vietnam Cashew Association, Mr. Dang Hoang Giang proposed that the Government of Vietnam and the Governments of EU countries must concretize cooperation through FTAs, typically EVFTA, UKVFTA in order to create maximum trade facilitation. for businesses in the cashew industry through the commitments of the FTA. Mr. Giang also asked the authorities to support information on prospects, market forecasts and consumption trends in the European market for cashew products. This requires very active support from the Vietnamese Trade Offices abroad. In the first 4 months of 2022, statistics from the General Department of Customs show that Vietnam's cashew nut exports reached 153.35 thousand tons, worth USD 913.5 million, down 5.2% in volume and down 4.2%. 1% in value over the same period in 2021. Notably, cashew exports to many countries in the European region recorded high growth compared to the same period last year, such as: Exports to the UK reached 25,339 thousand USD. , up 16.4%; Exports to Germany reached 37,178 thousand USD, up 12.9%; Exports to Italy reached 20,954 thousand USD, an increase of more than 110%... According to Ms. Nguyen Thi Thu Thuy, Deputy Director of the Export Support Center, Department of Trade Promotion (Ministry of Industry and Trade), the tax rate for cashew kernels and products processed from cashew nuts imported into the EU from Vietnam has been reduced to 0% immediately after EVFTA comes into effect (June 8, 2021-PV). This is an important milestone and a great opportunity for cashew businesses because before the EVFTA was implemented, the tariff on cashew nuts imported into the EU from Vietnam fluctuated from 7 to 12%. “In Western Europe, Vietnam's cashew nuts are exported to countries: Germany, the Netherlands, France, Belgium... In which, the cashew industry has well exploited the Dutch and German markets. These are also important commercial hubs for imported cashew nuts for re-export. For Eastern Europe, Vietnamese cashew nuts are present in many countries such as Russia, Poland, Ukraine ... ", Ms. Thuy added. Mr. Dang Hoang Giang analyzed: Currently, the food consumption trend of the European market focuses on factors with products such as: focusing on health; convenience and technology; alternative proteins (vegetable origin); sustainability and waste reduction; Looking for new flavors and experiences. Meanwhile, cashew nuts are one of the products with high nutritional content, low glycemic index beneficial for health, and at the same time, this is also a product with many flavors, suitable for preferences, popular with consumers. European consumers prefer. “With FTAs ​​such as EVFTA, Vietnam-UK FTA (UKVFTA), tariff barriers are removed, cashew nut import tax into the EU market of 27 countries and the UK market are all equal to 0% are factors. quite favorable to promote the export of this item in the near future," said Mr. Giang. Competitive pressure There is a high level of competition in the European Union A supermarket in Europe - Photo: IT Besides the favorable factors, the remarkable point in exporting cashew nuts to the European market is that Vietnamese products are facing fierce competition. Although Vietnam's cashew nuts dominate the market, it is only in raw form, with very few processed products, especially roasted and spiced products according to customer's taste. Mr. Vu Anh Son, representative of the Vietnam Trade Office in France, said that the supply chain of cashew nuts in France has changed markedly with the decline in market share of Vietnam, India and the emergence of a number of other countries. especially Cambodia. Looking from the story of rice and giving a warning for cashew products, Mr. Son stated: "If in 2013 there was almost no appearance of Cambodian rice in France, it would only be 5-7 years after this country. become the largest rice exporter to France and a very large rice exporter to the EU. The story of Cambodia's rice exports can also be repeated with cashew exports." He also mentioned that the possibility of EU enterprises investing in the African region is not excluded to diversify the supply of cashew nuts, avoiding dependence on Vietnam and Asian countries. The EU, especially France, has a very special relationship with Africa; Not only has a geographical location and transport routes closer to Vietnam, but Africa and France have historical links. Pointing out the difficulties and shortcomings of Vietnam's cashew industry today, according to Mr. Dang Hoang Giang, the production and deep processing capacity is limited, especially the roasted and flavored cashews according to the tastes of European consumers. Europe; At the same time, the marketing stage, grasping customer tastes is still weak. “Vietnamese enterprises are also limited in their ability to promote their brands and communicate through e-commerce. From a farming perspective, it is currently difficult to expand the area, domestic production cannot meet local raw materials, and many raw things must be imported abroad," said Mr. Dang Hoang Giang. “Cashew nuts, especially spiced cashews, are becoming more and more popular among EU consumers. In addition, cashews are also an ingredient in many healthy foods and functional products such as cashew milk, cashew yogurt, etc. The variety of cashew products also increases the demand for cashew nut products. This product is in the EU market. Therefore, domestic enterprises that want to maintain their market share in this market need appropriate research and investment," said the representative of the Vietnam Trade Office in France.