Overview of Vietnam’s cashew nuts export situation
Vietnam has been the world’s leading cashew producer and exporter since 2006. The industry has consistently generated over $1 billion in annual export revenue for over 15 years. In recent years, it has seen significant growth, with export values reaching record highs in 2017 and 2024. Vietnam’s cashews are exported to over 90 countries, driven by increasing global demand for high-quality, sustainably sourced nuts.
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.
Vietnam’s cashew production capacity and quality
Vietnam has a significant cashew processing capacity, yet the domestic supply of raw cashew nuts is insufficient to meet demand. Consequently, Vietnam imports raw cashew nuts in shells, primarily from Africa. The primary advantage of leading cashew processing countries like Vietnam is the use of automatic equipment. Typically, a worker can process up to 40 kg of nuts per shift per day, while automatic machines can process over 100 kg per hour. Processing techniques have a raw kernel recovery rate of 85% to 90% in Vietnam, while Brazil and India only reach approximately 60%.
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.
Vietnam cashew quality
At the World Nut and Dried Fruit Conference in May 2017, the International Nut and Dried Fruit Council (INC) confirmed that 90% of Vietnam’s cashew nuts are produced with advanced technology, ensuring top-notch quality and safety. Most manufacturers in Vietnam have HACCP certification, and large factories adhere to high standards such as ISO 22000, FSSC 22000, BRC, and HALAL, which comply with international requirements, particularly 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.
Harvest capacity
According to preliminary data from the Ministry of Agriculture and Rural Development of Vietnam, the cashew growing area nationwide reached 305 thousand hectares, an increase of 2.6 thousand hectares; the output of raw cashews reached 367.2 thousand tons. The average yield of cashews in Vietnam is 2 times higher than the world average, higher than 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.
The kinds of cashew products could be sourced from Vietnam
With its big production capacity, Vietnam could be sourcing various cashew nuts to meet customer demand. Some popular cashew nuts are:
- 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.
Cashew products for export
In addition to raw cashews, Vietnam exports a wide range of processed cashew products, meeting the diverse needs of the 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.
Price of Vietnam cashew nuts
The growth of the functional food market and the trend of consuming healthy products have boosted the demand for cashew nuts worldwide, especially in major markets such as the US, EU, and China. Additionally, rising production costs, including those for fertilizer, pesticides, labour, and energy, have increased the cost of cashew production, affecting 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 Vietnam is the Best Choice for Cashew Sourcing
Vietnam has established itself as the world’s leading exporter of cashews, accounting for over 50% of the global market share. There are several compelling reasons why Vietnam is the ideal choice for sourcing cashews:
- 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
