The Vietnamese cashew brand is being affected by the increase in imports of low-quality cashew kernels.

SGGPO 19/04/2023 21:40

The amount of cashew nuts imported in 2022 exceeded the total amount of raw cashew nuts produced in Vietnam in one year. Therefore, businesses no longer process raw cashews into cashew kernels as they did before.

On the afternoon of April 19th, at a meeting between leaders of the Vietnam Chamber of Commerce and Industry (VCCI) and various associations and businesses, the Vietnam Cashew Association (Vinacas) reported that domestic cashew kernel production is facing difficulties due to the large volume of imported cashew kernels. Therefore, the association recommended that relevant ministries and agencies develop policies to ensure the sustainable development of the Vietnamese cashew brand.

Vietnamese cashew brands are being affected by the increase in imports of low-quality cashew kernels (image 1).

Mr. Bach Khanh Nhut, Vice Chairman of Vinacas, delivered a speech at the conference.

According to Vinacas, in the first two months of the year, Vietnam imported more than 10,158 tons of cashew kernels, equivalent to nearly 44,000 tons of raw cashews. In 2022, according to data from the General Department of Customs, 78,583 tons of cashew kernels were imported into Vietnam, equivalent to nearly 350,000 tons of raw cashews; this quantity is greater than the total raw cashew production of Vietnam in one year.

According to Mr. Bach Khanh Nhut, Vice Chairman of Vinacas, cashew-growing countries in Africa and Cambodia are currently developing their cashew processing industries, gradually reducing the export of raw cashews. Therefore, these countries are implementing many preferential policies and support measures to attract investment in cashew processing plants. At the same time, they closely monitor the export price of raw cashews and impose high export taxes. Conversely, cashew kernels are tax-exempt for export. Meanwhile, both raw and kernel cashews imported into Vietnam for processing and export are tax-exempt. This will create favorable conditions for increasing the import volume of kernel cashews into Vietnam.

Vietnamese cashew brands are being affected by the increase in imports of low-quality cashew kernels (image 2).

A view of the VCCI conference with associations and businesses.

Consequently, many Vietnamese businesses simply import cashew kernels, package them, and export them to other countries. Conversely, businesses no longer process raw cashews into kernels as they did before. Furthermore, the imported cashew kernels are of lower quality, resulting in lower quality upon export and negatively impacting Vietnam's cashew brand in the international market.

Due to the seriousness of this issue, Vinacas proposes that the Ministry of Industry and Trade, in collaboration with relevant ministries and agencies, assist in finding solutions and submitting them to the Government for approval, in order to quickly create fairness in the processing and trading of cashew kernels in the international market.

Vinacas also proposed negotiating and signing bilateral agreements with each country on the exemption of import and export duties on each other's goods, possibly allowing countries exporting raw cashews to Vietnam to be exempt from import duties. Conversely, if a country does not agree to exempt the export of raw cashews, Vietnam will not exempt the import of cashew kernels; apply a 25% tax rate to shelled cashews; and impose a minimum import price on cashew kernels imported into Vietnam.

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