What makes Vietnam a top cashew exporter?
Vietnam has solidified its position as the world’s leading cashew producer and exporter since 2006, consistently generating over $1 billion in annual export revenue for more than 15 years. This dominance is driven by increasing global demand for high-quality, sustainably sourced nuts, with export values reaching record highs in 2017 and 2024, and Vietnamese cashews now reaching over 90 countries worldwide.
The US is the largest consumer, accounting for over 35% of exports, while the EU is the second-largest market, representing over 23%. China has emerged as a significant market, with exports surging in recent years. The UAE, although smaller in volume, has shown remarkable growth. Vietnam’s dominance in these markets is driven by its high-quality products, competitive pricing, and strong reputation.
The global demand for cashews is increasing due to their health benefits. Vietnam, a leading cashew producer, is well-positioned to capitalise on this trend. The country has invested in technology to improve efficiency and quality, making its products highly sought after globally. With favourable market conditions, Vietnam’s cashew industry is expected to continue its strong growth trajectory.
How does Vietnam ensure high-quality cashew production?
Vietnam ensures high-quality cashew production through its significant processing capacity and advanced automatic equipment, despite needing to import raw cashew nuts, primarily from Africa, to meet demand. This technological advantage allows Vietnamese facilities to process over 100 kg of nuts per hour with automatic machines, compared to 40 kg per worker per shift, achieving an impressive raw kernel recovery rate of 85% to 90%, significantly higher than the approximately 60% seen in Brazil and India.
According to the Vietnam Cashew Association (Vinacas), the country has over 3,000 cashew processing facilities, with Binh Phuoc province, the capital of Vietnam’s cashew industry, having up to 1,400 facilities. The number of cashew processing factories in Vietnam is growing at a rapid pace. Currently, there are approximately 500 cashew processing factories with a combined capacity of over 4 million tons (based on raw cashew nuts), representing 50% of the global raw cashew output.
What quality standards do Vietnamese cashews meet?
Vietnamese cashews consistently meet rigorous international quality and safety standards, as confirmed by the International Nut and Dried Fruit Council (INC) in May 2017, which noted that 90% of Vietnam’s cashew nuts are produced with advanced technology. Most manufacturers hold HACCP certification, while larger factories adhere to high standards like ISO 22000, FSSC 22000, BRC, and HALAL, ensuring compliance with international requirements, especially for the European Union and Muslim markets.
By applying these rigorous standards, Vietnam not only ensures product quality but also strengthens the global position of Vietnamese cashews, meeting the growing demands of international consumers.
How much cashew does Vietnam harvest annually?
Vietnam harvests a substantial amount of cashews annually, with preliminary data from the Ministry of Agriculture and Rural Development indicating a nationwide growing area of 305 thousand hectares, an increase of 2.6 thousand hectares, yielding 367.2 thousand tons of raw cashews. This impressive output is supported by an average cashew yield that is twice the world average, surpassing both Brazil and India.
In recent times, the cashew industry has promoted the application of science and technology in production. Notably, many localities have implemented intensive farming models, transferring technical advances to farmers such as pruning, canopy creation, fertilization, pest control, and helping plants grow and develop well. Therefore, many large-scale cashew growers have implemented intensive farming well, and cared for properly, achieving yields of 30 to 35 quintals/ha, and in some places, from 35 to 50 quintals/ha.
What types of cashew products can you source from Vietnam?
Given its extensive production capacity, Vietnam offers a diverse range of cashew nuts to meet varied customer demands. Popular options include:
- W Cashews are premium quality, whole, unbroken nuts. They are a popular ingredient in high-end products such as salted roasted cashews and butter-roasted cashews.
- LP Cashews (Large Pieces): These are large pieces of cashews, often utilized in the production of salted roasted cashews, butter roasted cashews, or mixed products.
- SP Cashews (Small Pieces): These are smaller pieces of cashews, often used to produce products such as cashew powder and cashew milk.
- BB Cashews (Baby Bits): These are very small pieces of cashews, which are often used as raw materials for confectionery and chocolate products.
- WS Cashews (Whole Split) are cashews that have been broken in half and are often used as an ingredient in products such as salted roasted cashews and butter roasted cashews.
What processed cashew products does Vietnam export?
Beyond raw cashews, Vietnam exports a comprehensive array of processed cashew products, catering to the diverse requirements of the global market.
- The most popular product is roasted cashews, which are made by roasting cashews with salt or other spices.
- Cashew powder is produced from finely ground cashews and can be used in a variety of applications, including in cakes, ice cream, nut milk, and beverages.
- Cashew milk is a plant-based alternative made from soaked, finely ground, and filtered cashews. It is a rich source of nutrients and suitable for vegetarians and individuals with cow’s milk allergies.
- Butter-Roasted Cashews: Cashews are roasted with butter and other spices, resulting in a distinctive and flavorful product.
- Spiced Cashews: Cashews are seasoned with a blend of spices, including chilli, garlic, and pepper, resulting in a distinctive and appealing flavour profile.
- Cashew oil: Derived from cashews, this versatile oil is suitable for a range of culinary and cosmetic applications.
What are the current prices for Vietnamese cashew nuts?
Current prices for Vietnamese cashew nuts are influenced by several factors, including the growing global demand driven by the functional food market and healthy eating trends, particularly in major markets like the US, EU, and China. Additionally, rising production costs for inputs such as fertilizer, pesticides, labor, and energy have contributed to increased export prices.
FOB prices of Vietnamese cashew nuts range from 5,350 – 6,560 USD/ton in the period of 2023 – 2024 and tend to increase in price. Refer to domestic cashew nut prices in Vietnam here: Vietnam Agriculture Food Price From November 11th – 17th
Why should you choose Vietnam for sourcing cashews?
You should choose Vietnam for sourcing cashews because it has firmly established itself as the world’s leading exporter, commanding over 50% of the global market share. This dominance is attributed to several compelling factors that make Vietnam an ideal choice for international importers:
- Consistent Product Quality: Vietnamese cashews are renowned for their high quality, meeting international standards such as HACCP, ISO, and VietGap. The production and processing methods are tightly controlled from harvesting to packaging, ensuring that the cashews maintain their freshness and nutritional value.
- Abundant and Reliable Supply: Key growing regions like Binh Phuoc, the Central Highlands, and Dong Nai have favourable climates and soils that support a stable year-round supply of cashews. This enables international businesses to maintain a consistent supply chain and minimize risks of shortages.
- Competitive Pricing: Thanks to low labour costs and efficient production processes, cashews from Vietnam are often offered at competitive prices on the global market. Importers can benefit from cost savings while still ensuring they receive high-quality products.
- Supportive Export Policies: Currently, Vietnam has 16 FTAs with a lot of countries and regions around the world. Besides that, the Vietnamese government offers various incentives and support policies for agricultural exports, including cashews. These policies facilitate smoother customs procedures and reduce export tariffs, making it easier for international importers to do business with Vietnam.
When sourcing cashews from Vietnam, it’s important to choose a reliable supplier who can meet both quality and volume requirements. Working closely with your supplier to ensure clear contract terms and delivery schedules is also crucial. With its advantages in quality, pricing, and supply, Vietnam is undoubtedly a top destination for cashew sourcing.
If you’re interested in learning more about importing cashews from Vietnam, feel free to contact us for detailed advice and assistance in finding the right supplier.
See further: Sourcing Pepper from Vietnam: Prices, Quality and Growing Areas
