11:32 | 07/09/2016 Trade
(VEN) - Vietnam’s exports are forecasted to be influenced due to UK votes to leave the EU. However, cashew nut exports continue to be flourishing and maintain its growth.
Good export growth
According to the Ministry of Agriculture and Rural Development, cashew nut exports reached an estimated 32,000 tonnes for US$251 million in July alone and 189,000 tonnes valued at US$1.46 billion in the first seven months of the year, an increase of 2.5 percent in volume and 9 percent in value compared to the same period last year. The average export price in the seven months of this year reached US$7,694 a tonne, an increase of 6.6 percent compared to a year ago. The US, the Netherlands and China remained three largest cashew nut importers.
The average domestic price reached VND43,500 per kg, even VND44,000 per kg in July, recording the highest figure since the beginning of the year due to failure of crops and higher prices of imported raw cashew nuts.
Vietnam Cashew Association Deputy Chairman Dang Hoang Giang said that total export turnover of the agricultural sector reached US$30 billion in 2015, in which cashew nut exports accounted for nine percent of a total. Thanks to its result, Vietnam remained the largest cashew exporter in the 10th consecutive year, accounting for 50 percent of the global revenue for cashew exports. Vietnam is expected to export around 350,000 tonnes in cashew nuts this year for US$2.5 billion.
Giang also added that the Trans-Pacific Partnership members have accounted for more than 50 percent of Vietnam’s cashew export value. In addition, Singapore, Thailand and Cambodia among ASEAN Economic Community members have had close relations with Vietnamese cashew businesses, creating favorable conditions to further promote cashew nut exports.
Developing sources of materials
Raw cashew nut imports serving processing have accounted for 60-70 percent of output. Therefore, the authorities and businesses need to develop sources of materials in a stable manner to ensure supplies.
The cashew sector development planning by 2020, with a vision to 2030 approved by the Ministry of Agriculture and Rural Development aims at cashew output of around 400,000 tonnes with key areas in Binh Phuoc, Dong Nai, Binh Thuan and Ba Ria-Vung Tau provinces.
The Vietnam Cashew Association has suggested establishing a fund that will make cashew production sustainable in addition to strengthening links between cashew businesses and farmers. The fund will raise money from the state, cashew processors and exporters (US$1-2 for every tonne of cashew exported), donors and others. Around 50-70 percent of the fund will be used for programs to improve cashew fields, research into cashew strains and support farmers.