The cashew industry has set a modest target of exporting 170,000 tonnes of cashew nuts worth 1.5 billion USD this year, up 11.1 percent over last year, as it anticipates difficulties ahead, according to the Vietnam Cashew Association (Vinacas).
Last year Vietnam exported 166,109 tonnes of cashew nuts, earning 1.35 billion USD, a drop of 16.46 percent in volume but an increase of 20.13 percent in value.
The US remained the biggest importer of Vietnamese cashews, followed by the EU and Asia . China is the largest importer of Vietnamese cashews in Asia .
However, cashew processors and exporters are facing many difficulties this year, including a shortage of working capital and labour, and a fall in overseas demand, according to Vinacas Chairman Nguyen Thai Hoc, who spoke at a conference held in HCM City on Feb. 29.
The ongoing economic crisis has hit global consumption demand, especially in the EU, leading to high inventories and a drop in prices.
In addition, India , the world's largest cashew producer and exporter, may increase exports this year because its domestic cashew consumption has fallen.
This would affect Vietnam 's cashew exports as well as the global cashew price.
A labour shortage and capital also continue to be problems for cashew processing and exporting firms.
Nguyen Duc Thanh, Vinacas deputy chairman, said that, with the current severe shortage of labourers, the target of exporting 170,000 tonnes of cashew will not be achieved if the industry does not have appropriate measures to solve the issue.
Enterprises exported only 14,000 tonnes of cashew worth 107 million USD from January 1 to February 15, a low amount compared to the same period last year.
The average export price for the period has also been quite low, compared to the same period last year, according to Thanh.
Therefore, the export target set for this year of 1.5 billion USD would be hard to reach, he said.
Nguyen Van Chieu, general director of Long An Food Processing Export JS Company, said demand for cashews from China drops every year after the Lunar New Year holiday.
Exports to the EU market have fallen due to the economic crisis there.
"This time is the most difficult time for cashew exports, but prices are expected to improve from the second quarter of the year," he said.
Dang Hoang Giang, the association's general secretary, said many trade promotion activities will be carried out this year, including a customer conference in Nha Trang in May to help its members maintain exports.
The association plans to petition the Government and the State Bank of Vietnam to seek measures to solve capital difficulties faced by enterprises.
Hoc said the cashew industry this year will focus more on improving quality and less on quantity growth in cashew exports.
The association plans to collect its members' ideas on imposing eligibility conditions on cashew exporters. This proposal will be submitted to the Government for approval.
This year, the volume of raw cashew imports is expected to be lower than last year, to around 250,000-300,000 tonnes, according to Thanh.-VNA
Last year Vietnam exported 166,109 tonnes of cashew nuts, earning 1.35 billion USD, a drop of 16.46 percent in volume but an increase of 20.13 percent in value.
The US remained the biggest importer of Vietnamese cashews, followed by the EU and Asia . China is the largest importer of Vietnamese cashews in Asia .
However, cashew processors and exporters are facing many difficulties this year, including a shortage of working capital and labour, and a fall in overseas demand, according to Vinacas Chairman Nguyen Thai Hoc, who spoke at a conference held in HCM City on Feb. 29.
The ongoing economic crisis has hit global consumption demand, especially in the EU, leading to high inventories and a drop in prices.
In addition, India , the world's largest cashew producer and exporter, may increase exports this year because its domestic cashew consumption has fallen.
This would affect Vietnam 's cashew exports as well as the global cashew price.
A labour shortage and capital also continue to be problems for cashew processing and exporting firms.
Nguyen Duc Thanh, Vinacas deputy chairman, said that, with the current severe shortage of labourers, the target of exporting 170,000 tonnes of cashew will not be achieved if the industry does not have appropriate measures to solve the issue.
Enterprises exported only 14,000 tonnes of cashew worth 107 million USD from January 1 to February 15, a low amount compared to the same period last year.
The average export price for the period has also been quite low, compared to the same period last year, according to Thanh.
Therefore, the export target set for this year of 1.5 billion USD would be hard to reach, he said.
Nguyen Van Chieu, general director of Long An Food Processing Export JS Company, said demand for cashews from China drops every year after the Lunar New Year holiday.
Exports to the EU market have fallen due to the economic crisis there.
"This time is the most difficult time for cashew exports, but prices are expected to improve from the second quarter of the year," he said.
Dang Hoang Giang, the association's general secretary, said many trade promotion activities will be carried out this year, including a customer conference in Nha Trang in May to help its members maintain exports.
The association plans to petition the Government and the State Bank of Vietnam to seek measures to solve capital difficulties faced by enterprises.
Hoc said the cashew industry this year will focus more on improving quality and less on quantity growth in cashew exports.
The association plans to collect its members' ideas on imposing eligibility conditions on cashew exporters. This proposal will be submitted to the Government for approval.
This year, the volume of raw cashew imports is expected to be lower than last year, to around 250,000-300,000 tonnes, according to Thanh.-VNA
