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  • The export market is difficult, the cashew industry has repeatedly lowered the export turnover target 12/05/2022

    Dec 5th, 2022

    According to statistics of the General Department of Customs, from the beginning of the year to November 15, 2022, the cashew industry exported 447,897 tons of cashew kernels of all kinds, worth $2.7 billion, down compared to the same period in 2021. 11.31% in volume and down 15.56% in turnover. In the first 10 months of 2022, the export of cashew kernels to the number 1 market in the United States reached 119,391 tons, worth $ 700,289 million, down 19.87% in volume and 20.47% in value over the same period in 2021. . China is the second largest market after the United States, in the past 10 months, cashew kernel exports to this market 59,871 tons, worth 356.18 million USD, down 12.46% in volume and 29.22% in turnover. compared with the same period last year. The third is the Dutch market, in the past 10 months, cashew kernel exports to this market reached 45,228 tons, worth 246.211 million, down 22.38% in volume and down 22.92% over the same period last year. The German market ranked fourth with export volume in the past 10 months reaching 14,813 tons, worth 91,268 million, down 14.38% in volume and down 16.29% in value over the same period last year. At the seminar "Despite solutions to promote export of Vietnamese goods to the EVFTA and CPTPP markets in the new context", held yesterday by the Import-Export Department - Ministry of Industry and Trade in collaboration with the Department of Industry and Trade of Tien Giang province. Dang Hoang Giang - General Secretary of the Vietnam Cashew Association (Vinacas) said that in the first 11 months of 2022, the amount of cashew kernels exported and imported raw cashew nuts to Vietnam both decreased significantly compared to the same period in 2021. “At first, the association set an export plan of $ 3.8 billion, but in the first quarter of 2022, it was adjusted to $ 3.2 billion, but at this point, cashew exports seem difficult to achieve the target of 3. $0.2 billion compared to the plan, "VINACAS Secretary General said. Import volume of raw cashew nuts slightly decreased compared to 2021 As of November 15, 2022, cashew businesses have imported about 1.8 million tons of raw cashews, worth $2.5 billion. Currently, Vietnam is still the leading country in importing raw cashew nuts globally. The main import markets include: Ivory Coast, West African countries and East African countries. It is expected that in 2022, Vietnam will import about 1.9 million tons of raw cashew nuts, a slight decrease compared to 2021. According to General Secretary of Vinacas, during the period of the COVID-19 pandemic, cashew kernel exports were very stagnant. After COVID-19, cashew nut exports were affected by the Russia-Ukraine war, and according to the forecast of The Global Cashew Council (GCC), in 2022 and possibly until 2023, the production activities as well as the global cashew supply chain will face many difficulties, due to the following reasons: First, governments are tightly controlling credit, cash flows, fiscal policies, and global inflation. This is one of the issues that countries with export economies are paying great attention to. Second, the Chinese Government still applies the "zero COVID" policy, so it has not opened the market, and it is not known when China will completely open up. Third, the war between Russia and Ukraine from 2021 up to now has not shown any signs of cooling down, affecting the economic situation, international politics and high inflation, leading countries to make policies. Credit tightening, exchange rate fluctuations cause consumption to decrease, etc. “It is these problems related to factors that increase the production and processing costs of cashew businesses, causing a lot of difficulties in production and business activities, including cashew production and business activities. . It is forecasted that the growth of the cashew industry will be significantly reduced because the global demand for cashew kernels continues to be gloomy, and the cashew raw material market will face many challenges in the coming time," said Mr. Giang. The EVFTA and CPTPP have not been fully utilized yet Commenting on an overview of the cashew export market in recent times for taking advantage of the opportunities brought by mechanisms and policies from the EVFTA and CPTPP, Mr. Giang said that after the implementation of the EVFTA and CPTPP Cashew kernel exports to countries in the bloc all had a slight growth, but direct exports of processed products to high-end markets are markets such as the UK, which have end consumers, France and Germany are still low, and exports to Europe are still a gateway. For example, the Netherlands imports a very large amount of cashew kernels from Vietnam, then countries like Germany and the UK import from the Netherlands. “According to statistics of the World Trade Center (ITC), Vietnam is not the country that holds the dominant export market share of cashew kernels to the UK, France, and Germany markets, but the Netherlands. This is a very absurd thing when in fact this cashew nut is from Vietnam to export," said General Secretary of Vinacas. Faced with this fact, Vinacas asked the Ministry of Industry and Trade to find out and have supportive solutions to help businesses make good use of FTAs ​​and bring agricultural products, including cashews, into high-end markets, reducing the amount of waste. cashew nuts through the intermediate gateway market to bring added value. Secondly, most of the importing countries and foreign partners in the CPTPP and EVFTA are assessed that Vietnamese cashews are exported in preliminary form, while for specialized techniques, cashews have been processed and peeled. Silk skins, vacuum-dried and packaged are final consumable products, so exports to these markets remain low. Third, businesses have not yet taken advantage of opportunities to expand exports to other potential markets in the bloc and still export to traditional markets, even to Singapore transit markets. The Netherlands thinks that exporting to these markets is relatively easy and the delivery fee is also relatively low, so now most cashew exports have to go through intermediaries.