Vietnam has spent over $1 billion on cashew nuts from Cambodia in 2024

September 13, 2024 | 18:45

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Despite being renowned as the world's leading producer and exporter of cashew nuts, Vietnam has purchased nearly 95 per cent of Cambodia's total raw cashew nut output in the first seven months of this year.

According to the General Department of Customs, the import volume of cashew nuts from Cambodia has increased by a little over 34 per cent in quantity and more than 26 per cent in value compared to the same period last year.

Vietnam has spent over $1 billion on cashew nuts from Cambodia in 2024

In just the first seven months of this year, Vietnam has spent over $1 billion to import nearly 790,000 tonnes of raw cashew nuts from Cambodia.

The share of cashew nuts accounts for more than 47 per cent of Vietnam's total cashew import turnover, representing an increase of almost 10 percentage points on-year.

Meanwhile, Vietnam has exported approximately 478,000 tonnes of processed cashew nuts in the past eight months, with a turnover of nearly $2.7 billion, representing a 23 per cent increase in volume and a just under 22 per cent increase in value compared to 2023.

According to Pham Van Cong, chairman of the Vietnam Cashew Association, the raw materials for processing cashew nuts in Vietnam mainly depend on imported raw cashew nuts.

Furthermore, Cambodia, along with Africa, has been implementing a strategy to develop domestic processing industries and gradually reduce raw exports recently. These countries have introduced various preferential policies to attract investment in cashew processing plants, closely monitor minimum selling prices, and apply high export tax rates on raw cashew nuts while exempting processed cashew nut exports from taxes.

Cong warned that if Vietnam cannot actively secure a source of raw material supply, its number one position in the world's cashew industry could be at risk.

"Vietnamese cashew firms can collaborate to exploit and develop raw material areas in Cambodia and Southern Laos, including cooperation in seed technology transfer, and then bring these raw cashew nuts back to Vietnam for processing," said Cong.

Cambodia has become the world's second-largest producer of raw cashew nuts, with a production volume reaching 830,000 tonnes in July, according to the Cambodia Cashew Association report.

Cambodia is aiming to boost cashew nut production and develop processing facilities, as well as diversify export markets. Through the national cashew policy from 2022 to 2027, the country expects its processing capacity to increase from 5 per cent to 25 per cent by 2027 and around 50 per cent by 2032.