Vietnamese cashew brand affected by increased imports of poor quality cashew nuts

SGGPO 04/19/2023 21:40

The import quantity in 2022 is larger than the total raw cashew output produced by Vietnam in 1 year. Therefore, businesses no longer process raw cashews into cashew nuts as before.

On the afternoon of April 19, at the meeting between the leaders of the Vietnam Federation of Commerce and Industry (VCCI) and associations - enterprises, the Vietnam Cashew Association (Vinacas) informed that domestic cashew nuts are facing difficulties due to the large number of imported cashew nuts into Vietnam. Therefore, the association recommended that ministries and branches need to introduce policies for the sustainable development of the Vietnamese cashew brand.

Mr. Bach Khanh Nhut, Vice President of Vinacas, spoke at the conference.

According to Vinacas, in the first two months of the year, Vietnam imported more than 10,158 tons of cashew nuts, equivalent to nearly 44,000 tons of raw cashew nuts. In 2022, according to data from the General Department of Customs, 78,583 tons of cashew nuts were imported into Vietnam, equivalent to nearly 350,000 tons of raw cashew nuts; this amount is larger than the total raw cashew output produced by Vietnam in 1 year.

Mr. Bach Khanh Nhut, Vice President of Vinacas, said that currently, cashew growing countries in Africa and Cambodia are developing cashew processing industries, gradually reducing the export of raw cashews. Therefore, this country has introduced many preferential and supportive policies to attract investment in cashew processing factories. At the same time, this country closely monitors the export price of raw cashews and imposes high export taxes. In contrast, exported cashew nuts are exempt from taxes. Meanwhile, both raw cashews and cashew nuts imported into Vietnam for processing and export are exempted from taxes by Vietnam. This will create conditions for cashew nuts to increase import output into Vietnam.

View of VCCI conference with associations - businesses

Since then, many Vietnamese businesses only need to import cashew nuts for packaging and export to other countries. Conversely, businesses no longer process raw cashew nuts into cashew nuts as before. On the other hand, imported cashew nuts are of low quality, so when exported, the quality also decreases, affecting the brand of Vietnamese cashews in the international market.

Due to the seriousness of this problem, Vinacas proposes that the Ministry of Industry and Trade take the lead with relevant ministries and branches to support finding solutions and submit them to the Government for permission to implement them to soon create fairness in processing and trading cashew nuts in the international market.

Vinacas also proposed to negotiate and sign bilateral agreements with each country on import and export tax exemption for each other's goods, so that countries exporting raw cashew nuts to Vietnam can exempt them from tax. Conversely, if this country does not agree to exempt raw cashew nut export tax, Vietnam will not exempt import tax on imported cashew nuts; apply a tax rate of 25% on shelled cashew nuts; and apply a minimum import price on imported cashew nuts to Vietnam.

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