The cashew industry should focus on markets in which Viet Nam had signed trade deals to take advantage of preferential tariffs and expand exports as inflation had pushed up the prices of raw materials and forced people to tighten spending, according to the Viet Nam Cashew Association.
Cashew exports saw two-digit drops in the first seven months.
Statistics of the Import-Export Department under the Ministry of Industry and Trade showed that cashew exports were estimated at 294,000 tonnes, worth US$1.76 billion in January-July, dropping by 10.5 per cent in volume and 12.1 per cent in value against the same period last year.
While the average export price increased by 1.45 per cent against the same period last year to $5,792 per tonne, the price of raw cashews rose by 15-20 per cent.
The department predicted that cashew exports would continue to struggle in the third quarter due to rising inflation, which was taking place in big economies and forced people to tighten spending.
Sharing the same viewpoint, the Viet Nam Cashew Association also said that cashew exports would continue to drop in the following months, even to the end of this year.
The association said that inflation was badly hitting the import markets of cashews such as the US and the EU.
In this context, the association had to lower its annual export target from $3.8 billion to $3.2 billion, around $400 million lower than the export revenue for 2021.
There was room to promote cashew export in the medium and long term, providing that Viet Nam enhance the product quality and consolidate the brands.
According to the Import-Export Department, global cashew exports are forecast to grow 4.6 per cent per year in the 2022-27 period, along with the worldwide trend of vegan and plant-based diets, favouring alternative protein sources.
President of the Viet Nam Cashew Association Pham Van Cong said that it was essential to focus on improving the quality and raw materials and exported cashew products to meet the requirements of the import markets.
The cashew industry had not fully taken advantage of the free trade deals it signed to expand exports.
According to the Viet Nam Trade Office in France, the third largest cashew import market in European Union, Viet Nam’s cashew products lacked competitiveness in this market as exporters did not attach attention to developing brands for Vietnamese cashews, pointing out that it was rare to find Vietnamese cashew brand on the shelves of supermarkets in France.
As well as improving product quality, the association said the focus should be placed on developing cashew brands.
Due to mounting inflation, Cong stressed that the cashew industry should strengthen exports to markets with free trade agreements with Viet Nam to make the most of preferential import tariffs. — VNS