Preliminary statistics from the General Department of Customs show that as of August 15, our country has exported nearly 451,600 tons of cashew nuts, earning 2.55 billion USD. Compared to the same period last year, the amount of exported cashew nuts increased by 25.2%, and the value increased by 22.6%.

Last year, Vietnam exported 644 thousand tons of cashew nuts, worth 3.64 billion USD. Vietnam's cashew industry has maintained the world's number 1 position in cashew nut exports for nearly two decades.

However, about 90% of raw materials for the production of Vietnam's cashew industry are imported from Africa and Cambodia. The reason is that our country's domestic supply of raw materials is quite modest due to the narrowing of the planting area.

According to data from the General Department of Customs, in 2023, Vietnam imported about 2.77 million tons of cashew nuts, worth 3.19 billion USD; up 46.2% in volume and 19.6% in value compared to the previous year. From January to August 15 this year, our country spent nearly 2.3 billion USD to import about 1.88 million tons of raw cashew nuts, a slight increase compared to the same period last year.

The heavy dependence on imported raw materials has caused many difficulties for the Vietnamese cashew industry. Typically, at the beginning of this year, the price of this type of nut skyrocketed, suppliers demanded price increases or reneged on orders, causing domestic cashew factories to struggle due to lack of raw materials.

Recently, the Binh Phuoc Cashew Association had to call for help because of the situation of poor quality goods impersonating the province's cashew brand being sold widely online.

Specifically, the cheap products are old-crop imported cashew nuts of poor quality. Many of them have worms and mold inside, no longer have the characteristic flavor and can affect the health of consumers; at the same time, affect the brand of Vietnamese cashews.

At the Vietnam Cashew Association Congress for the 2021-2026 term, Vinacas is concerned that Vietnam's leading position in the global cashew supply chain and value chain is shaken and will certainly be lost if we do not change our production strategy and depend too much on imported raw materials.

The reason is that recently, cashew growing countries in Africa and Cambodia have advocated developing domestic processing industries and gradually reducing raw exports. Therefore, they have introduced many preferential policies to attract investment in cashew processing factories. For raw cashew exports, countries strictly monitor the minimum export price and impose high tax rates; conversely, they exempt taxes on exported cashew nuts...

Paradoxically, Vietnam - the world's leading cashew exporter - has increased its import of raw cashews, making it difficult for cashew growers to sell their products, and the domestic purchase price of fresh cashews has decreased.

Domestic cashew prices are difficult to compete with imported goods, and income is not guaranteed, so many farmers have to cut down their cashew trees to switch to other crops.

The above situation causes the area of ​​this crop in our country to gradually decrease every year. Specifically, from 440,000 hectares in 2007, by 2022 the total cashew area in the country decreased to 305,000 hectares. In 2023, the cashew area decreased to 300,000 hectares, with an output of 347,600 tons.

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Minister Le Minh Hoan felt bitter when hearing farmers talk about the reasons for cutting down cashew trees and switching to growing durian. Photo: QH

On the morning of August 21, at the question-and-answer session of the National Assembly Standing Committee, the issue of the cashew industry was also discussed. In particular, delegates raised the issue of building a cashew nut brand, improving product competitiveness... to stabilize production and export activities, and increase income for farmers.

Responding to this, Minister of Agriculture and Rural Development Le Minh Hoan said that he went to Bu Dang (Binh Phuoc), stood in a cashew garden and looked across the garden and saw people cutting down cashew trees to plant durian. At that time, he asked the people: "Binh Phuoc is the capital, the kingdom of cashew trees, how could you abandon the tree that has been attached to Binh Phuoc for generations?"

The answer the Minister received was: "Growing durian brings in 1 billion VND/ha, while growing cashew only brings in about 35-40 million VND/ha. What do you think we should do?"

Minister Le Minh Hoan admitted that the answer made him feel very bitter. There were practical issues that made him personally think a lot.

From the above story, according to the Minister, we must adapt to market rules, we cannot stop farmers, we need other economic tools.

In Binh Phuoc there are 2 stories related to cashew trees.

Firstly, the Ministry of Agriculture and Rural Development has organized an agricultural extension model to grow red lingzhi mushrooms under the cashew canopy. Thus, in the cashew garden there are many layers of crop value and red lingzhi mushrooms can bring very high economic value. When income increases, people will be more attached to cashew trees.

Furthermore, members of the Binh Phuoc Young Entrepreneurs Association process a variety of cashews, but it is necessary to accelerate OCOP products from cashew trees; build a chain of links between cashew growers and processing enterprises; and overcome the instability when farmers grow cashews while Vietnam still has to import raw cashews from abroad.

The Minister emphasized that in any industry, not just the cashew industry, to stabilize production and develop sustainably, businesses must build raw material areas. However, to have raw material areas for production, farmers' profits must be guaranteed. Otherwise, the "planting - cutting" refrain will continue to recur and the industry will find it difficult to develop sustainably.

Minister Le Minh Hoan: When you have a product, you have to 'beat the drum and gong'. When I was a child, I went to the market in the West and heard the loudspeakers and the clanging gongs, so I knew that Chinese people were selling medicine. Why don't we do more communication? When we have a product, businesses and research institutes should 'beat the drum and gong' - said Minister Le Minh Hoan.