Exports gradually increased towards the end of the year

The Import-Export Department (Ministry of Industry and Trade) cited data from the General Department of Customs saying that, according to estimates, cashew exports of Vietnam in November 2023 reached 65 thousand tons. Estimated export price reaches 5,512 USD/ton, earning about 358 million USD.

Although cashew export prices have decreased by 12.6% compared to the previous month, export volume and value increased by 1.1% and 0.03% respectively compared to October 2023, compared to November/ 2022 increased by 34.5% and increased by 30.7%.

In the first 11 months of 2023, Vietnam's cashew nut exports are estimated to reach 582 thousand tons, worth 3.31 billion USD, up 23.1% in volume and 17.4% in value compared to the same period last year. Accumulated in the first 11 months of 2023, Vietnam's average cashew export price reached 5,682 USD/ton, down 4.7% over the same period.

With results in 11 months, the cashew industry has exceeded the target set by the Vietnam Cashew Association of 3.1 billion USD and is forecast to increase further this December.

Cashew export orders increased in the last months of the year

Commenting on the market and cashew export business activities in 2023, Mr. Vu Thai Son, Chairman of Binh Phuoc Cashew Association, Chairman of Long Son Group - said that if compared to 2022, the export volume for the whole year 2023 growth is about 25%, but the value is lower.

The decline in value of the cashew industry, according to Mr. Vu Thai Son, comes from the characteristic of the cashew industry having to buy raw materials 6 months in advance. Meanwhile, in early 2023, businesses bought raw materials at high prices, but in the following months, world export prices gradually decreased. At the same time, businesses also have to face high interest costs, fluctuating exchange rates... leading to almost no business efficiency.

2024 still has promise

However, Mr. Son said that the cashew industry still has good prospects in 2024 because many world markets such as the EU, Japan... still have demand for cashew products. The proof is that from the end of 2023, import orders from countries such as Europe, America, Japan... are increasing and at this time, more than 10 cashew processing factories of Long Son are operating at full capacity, even I even had to consider not accepting more orders.

Sharing the same opinion, Mr. Nguyen Hoang Dat, Director of VINAHE Co., Ltd. (Binh Phuoc) - said that VINAHE's export orders increased significantly in the last months of the year and the company also had to work at full capacity to meet the demand. meet delivery schedule.

The prospect is there, but according to the general opinion of businesses, the cashew industry is facing the problem of raw materials, high interest costs... along with the wave of shifting to green production according to the trend. Global. In terms of raw materials, the cashew area is increasingly shrinking as people switch to growing other crops with higher value such as durian, jackfruit... Therefore, next year if domestic businesses do not agree and unite to regulate the price of imported raw cashew materials and the price of processed cashew kernels. Regarding the green transformation wave, according to businesses, markets are increasingly demanding more stringent requirements on environmental standards, social responsibility...

Citing an example from Long Son Group, Mr. Vu Thai Son said that this business is exporting to supermarket partners in the US and Europe, so it requires very high standards. For example, if previously the parameters on the packaging could be printed, the partner required laser engraving. Businesses must also demonstrate to partners their social and environmental responsibility.

Workers packing cashews for export

Need to be "supported"

To take advantage of market opportunities, businesses have been trying to invest in mechanization, automation, reducing workers, reducing production costs and trying to sell goods - even at cheaper prices. This is to help businesses reduce inventory, rotate money to repay bank debt, thereby reducing loan interest. Along with that, invest in rooftop solar power to reduce electricity usage costs, and sign labor contracts for workers in accordance with international practices.

“Electricity bills must be reduced, there must be solar panels on the roof of the factory for partners to accept. In addition, we must also sign a full contract with the workers, committing not to violate overtime. Only then can we win long-term contracts with partners”- Mr. Son said.

However, in addition to the initiative of businesses, the Vietnam Cashew Association proposed that in the coming time the state needs to have a more open loan support policy for businesses; In particular, there is a flexible mechanism in collecting foreign currency when exporting, specifically, whichever market you sell to, you will collect foreign currency from that market.

Another issue that businesses are also concerned about is VAT refund. Accordingly, the current tax authorities' verification procedures must send letters to importing countries. Businesses believe that verification is basically appropriate, but for some customers (Japan), if verification procedures are too many, it will cause difficulties for businesses, leading to loss of contracts.

“We don't have any problem with the Tax Department sending verification to all countries around the world, but we suggest sending it less to Japanese customers. Because every time we send something like that, Japan will ask us to explain and think that we are having problems with our business, from there they can switch to buying cashew nuts from India" - Mr. Son shared share.