Vietnam has become the world’s largest cashew nut exporter. It has successfully exported 81,000 tonnes of cashew nuts to foreign markets in the first 7 months of the year 2008 registering a 2.2% rise and has received an inflow of 490 million USD which is around 50% in value as compared to the year 2007. The U.S. was the biggest importer of Vietnamese cashew nuts in 2007, consuming 52,900 tons worth US$211.5 million, up 27 per cent on year in value. It has risen itself to this coveted position by successfully processing both domestic and imported cashew nuts from Asia and Africa. It is further estimated that the cashew nut industry is likely to earn rich dividends by bringing in 850 million USD by the end of the year 2008(which is a year-on-year increase of 45%), thus surpassing the export revenue target of 670 million USD for 2010. The country attributes its tremendous success to factors like global price hike of cashews and best quality of cashew products, making it a popular choice across the world.

As Vietnam overtook India as the world’s leading cashew exporter in 2006, it made the country richer by US$650 million through the export of 153,000 tonnes of cashews in 2007, a 20.4 per cent increase. At present, Vietnam supplies 40% of the global demand for cashew and exports to 40 countries and territories including the US, China, Holland, Australia, UK and Germany.

Currently, Viet Nam has 220 cashew processors with a total capacity of 600,000-700,000 tonnes per annum.

According to the Vietnam Cashew Association, Vietnam is expected to post cashew nut export turnovers of 670 million U.S. dollars in 2010, and 820 million dollars in 2020, up from 505 million dollars in 2006.

The market for Vietnamese cashew is substantial and the industry has a bright future. As a result, the cashew sector updated its export target to 1 billion USD for 2010.

However, there is a need for improving and maintaining a high quality and product hygiene to win the Chinese market (world’s largest market) thus maintaining its stronghold in the global market. Cashew producers are aware of this situation and have invested more than 150 billion VND (equivalent to 9 million USD) in researching high-yield varieties and latest processing technologies over the past year.

The country is facing shortage of unprocessed cashew to cater to the demand for local consumption and exports, thus compelled to import 200,000 tonnes of cashew in 2007 which is further expected to reach 250,000 tonnes in the current financial year.

At present, Viet Nam’s processors produce merely around 350,000 - 400,000 tonnes of raw cashew per year and is dependent upon imports from other countries. It has plans to increase its cashew cultivation area to 450,000 hectares (from 350,000 hectares of cashew trees in 2005) and import 125,000 tons of raw cashews while producing 500,000 tons of the products in 2010.

The cashew sector seems to be smelling danger due to land being grabbed by other products including tea, coffee and rubber. The Vietnam Cashew Association (Vinacas) has asked Vietnamese government to remove import taxes on raw cashew in 2008 from current 5 per cent or 7.5 per cent and also provide 50 billion VND (3 million USD ) to attain the desired levels in quantity and quality.

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