Cashew nut exports in Vietnam experience trade deficit risk
Date
10/1/2024 5:23:02 AM
(MENAFN) Vietnam's cashew nut exports are facing a potential trade deficit due to rising raw material prices, as reported by Vietnam News on Tuesday. Despite maintaining growth in export turnover, experts note that the gap between the export value of cashew nuts and the import costs of raw materials has been gradually narrowing. This trend raises concerns about the long-term sustainability of the industry, particularly as global market conditions fluctuate.
According to the General Department of Customs, Vietnam exported over 486,000 tons of cashew nuts in the first eight months of this year, generating nearly USD2.8 billion in revenue. However, the country has incurred significant costs in importing raw cashew nuts, spending more than USD2.3 billion during the same period. This disparity highlights the challenges faced by Vietnam's cashew nut sector, which relies heavily on imported materials to meet its production needs.
As the world's leading processor of cashew nuts, Vietnam boasts a substantial number of processing factories. However, the domestic supply of raw cashew nuts is dwindling, meeting only about 10 to 12 percent of the factories' demand. This shortfall necessitates the import of most raw materials from regions such as Africa and Cambodia, which adds to the overall costs and could impact the competitiveness of Vietnamese cashew nuts in the global market.
The reliance on imports for raw materials underscores the need for Vietnam to explore strategies to boost domestic production of cashew nuts. Investing in agricultural practices, improving local supply chains, and potentially expanding cultivation areas could help mitigate the risks associated with trade deficits. Addressing these challenges will be crucial for maintaining Vietnam's position as a leader in cashew nut processing while ensuring economic stability in the sector.
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