Cashew nut exports to China increased by nearly 50%

Due to the influence of China's Zero Covid policy in 2022, Vietnam's export of cashew nuts to the Chinese market decreased sharply, reaching only 75,000 tons and 441 million USD in value. This is a decrease of 11% in volume and 28% in value compared to 2021.

When the Chinese government lifted its Zero Covid policy and reopened the market, Vietnam's export of cashew nuts to this market have recovered and grown steadily. According to the General Department of Customs, the export of Vietnamese cashew nut to China reached 30,000 tons within the first five months of 2023, which is valued at 199 million USD. This is an increase of 47.8% in volume, and 49.6% in turnover over the same period in 2022.

The Chinese market share in the total volume and value of Vietnam's epxort of cashew nuts has also increased noticeably. In contrast to previous years, when China typically made up only 10% of Vietnam's export of cashew nuts, this market made up 14% of volume and 15% of turnover in the first five months of 2023. As a result, China is continuing to be the second largest market for Vietnamese cashew nuts.

According to Mr. Phung Van Sam, Chairman of the Board of Directors of Hanfimex Group, China's reopening of its market in January 2023 has helped the country's consumers and manufacturers regain confidence in the national economy. China has an immense population, and following a prolonged period of social distancing brought on by the Zero Covid policy, its people will travel frequently in the near future. This increase in traffic will improve the circulation and consumption of cashew nuts in the Chinese market.

According to the Department of Import-Export under the Ministry of Industry and Trade, nuts have become a staple in the Chinese people's diet since the country issued a National Health Policy titled "Dietary Guidelines for Chinese Residents", which encourages the daily consumption of nuts. The rising trend of cashew nut imports into China can also be attributed to the new product campaign known as "daily nuts", in which a variety of nuts, including cashews, are packaged in ready-to-eat containers by Chinese cashew nut manufacturers.

The strong growth in the Chinese market has offset the decline in the US market, which is also the largest market for Vietnamese cashew nuts. During the first five months of 2023, export of Vietnamese cashew nuts to the US market reached 58 thousand tons, which is valued at 335 million USD. This is a decrease of 10.5% in volume and 9.2% in turnover over the same period in 2022.

Despite the decrease in volume, export of cashew nuts to the Netherlands increased in value thanks to high export prices to this market.During the first five months of 2023, export of Vietnamese cashew nuts to the Netherlands reached 20,000 tons, which is valued at 121 million USD. The average price of cashew nuts exported to the Netherlands increased by 22% compared to the first five months of 2022.

In addition to strong growth in the Chinese market, Vietnam's export of cashew nuts soared in several other markets including the UK with an increase of 17% in volume and 9.6% in value; the UAE with an increase of by 42% in volume and 30% in value; Saudi Arabia with an increase of 46% in volume and 34% in value. As a result, Vietnam's export of cashew nuts grew in both volume and value in the first half of 2023. Accordingly, Vietnam's export of cashew nuts reached 220 thousand tons within the first five months, which is valued at 1.29 billion USD. This is an increase of 8.3% in volume and 6.3% in value over the same period in 2022.

Binh Phuoc province has three key processed cashew nut products including: "Salted roasted cashew nuts", "Unsalted roasted cashew nuts" (original flavor) and "White cashew nuts". These products originate from Ha My Joint Stock Company, who have recently been certified as 5-star OCOP (One Commune One Product) product by the 2023 Central Evaluation and Classification Council for OCOP products.

According to Binh Phuoc Provincial People's Committee, with the aforementioned cashew nut products recognized certified for 5-star OCOP, this is the first time Binh Phuoc province has a national OCOP product. Ha My Joint Stock Company has spent ovre thirty years working to establish a brand and achieve a 5-star OCOP product. The 5-star rating requires an average total score between 90 and 100 points. Additionally, the product must be typical of the area, meet high quality requirements, and meet prerequisites for export.