Vietnam Cashes in on Cashews

February 17, 2015 Posted by Vietnam Briefing Reading Time: 4 minutes

Vietnam has retained its title as the world’s top cashew exporter for the ninth year in a row, as the country’s cashew and cashew by-product export revenue in 2014 reached a record US$2.2 billion.

The Vietnam Cashew Association (Vinacas) reported a 17.4 percent annual increase in volume of cashew kernels exports, with 306,000 tonnes shipped in 2014. Revenue from exports of the nuts grew by 21.9 percent to over US$2 billion, and when taking into account cashew by-products, export revenue was close to US$2.2 billion. Cashew prices had risen 3.8 percent year-on-year.

The primary destinations for Vietnam’s cashew exports are the USA, which receives approximately 30 percent of Vietnam’s total exports, followed by Europe with 25 percent, and China with 20 percent. Vietnamese cashews are exported to over 50 countries.

Vietnam imported 700,000 tonnes of raw cashew in 2014, feeding the country’s processing sectors and boosting exports. According to Vincas, 1.2 million tonnes of cashew kernel were processed in total last year, taking place in Vietnam’s approximately 500 large and medium, and 500 small scale processing facilities.

The Vietnam Trade Promotion Agency reports that cashew is grown in 300,000 hectares in Vietnam, with an average productivity of around 1,000 kilograms per hectare. It states that due to land pressures, productivity increases are prioritized over expansion of cultivated land, making use of an integrated pest management system to keep the country on track to the 1,700-2,000 kilograms per hectare productivity target.

Vietnam’s global prominence is not at the expense of others, as shown by Vinacas’ signing of a Memorandum of Understanding with Cote D’Ivoire’s Cotton and Cashew Council in 2014. Objectives of the MoU are to support consulting and training of cashew producers in Cote D’Ivoire, exchange industry information, protect trade between the two countries, and provide supporting technical advice. As African countries and Cambodia are the main suppliers of raw cashew to Vietnam’s processing industry, the onus is on Vincas to ensure adequate supply.

Vincas has set new 2015 targets of 350,000 tonnes of cashew kernel exports and US$2.5 billion in revenue. This ambitious targets were set despite Vincas Chairman Nguyen Duc Thanh forecasting challenged of foreign currency depreciation, competitive cashew cultivation in Africa, growth of Chinese and Indian cashew processing industries, and stricter quality controls.

About Us

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email vietnam@dezshira.com or visit www.dezshira.com.

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.

‍

Import and Export: A Guide to Trade in Vietnam

In this issue of Vietnam Briefing Magazine, we provide you with a clear understanding of the current business trends related to trade in Vietnam, as well as explaining how to set up your trading business in the country. We also attempt to give perspective on what will be Vietnam’s place in the Association of Southeast Asian Nations (ASEAN) in 2015, and look at some of the country’s key import and export regulations.

Tax, Accounting, and Audit in Vietnam 2014-2015
The first edition of Tax, Accounting, and Audit in Vietnam, published in 2014, offers a comprehensive overview of the major taxes foreign investors are likely to encounter when establishing or operating a business in Vietnam, as well as other tax-relevant obligations. This concise, detailed, yet pragmatic guide is ideal for CFOs, compliance officers and heads of accounting who need to be able to navigate the complex tax and accounting landscape in Vietnam in order to effectively manage and strategically plan their Vietnam operations.

An Introduction to Doing Business in Vietnam 2014 (Second Edition)
An Introduction to Doing Business in Vietnam 2014 (Second Edition) provides readers with an overview of the fundamentals of investing and conducting business in Vietnam. Compiled by Dezan Shira & Associates, a specialist foreign direct investment practice, this guide explains the basics of company establishment, annual compliance, taxation, human resources, payroll, and social insurance in the country.