The partnership between Vietnam and Cambodia in the raw cashew (known as RCN) trade is a win-win situation for both countries. Vietnam’s reliance on its neighbor’s raw cashews secures its supply chain, while Cambodia’s burgeoning cashew industry benefits from the substantial demand from Vietnam. This dynamic demonstrates the power of regional trade relations in a globalized economy.
98% Cambodia Raw Cashew Nuts Export to Vietnam in 2022
Vietnam, the leading country in terms of Cashew Kernel Export volume worldwide, for the past 16 years, accounting for about 80% of the world’s total exports, has turned to Cambodia for its raw cashew needs amidst a shortage of processing materials in 2022. According to reports, Cambodia exported a total of 670,000 tons of raw cashew nuts to the international market, with 660,000 tons worth more than a billion dollars sold to Vietnam alone. And The Vietnam Trade Office in Cambodia released a statement on February 7, 2023, confirming the report.
This trend bodes well for Cambodia, a country whose cashew industry has been steadily growing in recent years. With the demand for raw cashews on the rise, Cambodian farmers are expected to reap the rewards of their labor as they continue to export their products globally. This is also a positive development for Vietnam, as it allows them to fulfill their cashew processing needs, which are critical to their economy. This trade partnership is expected to yield significant benefits to both countries. Cambodia will have access to Vietnam’s robust processing capacity, while Vietnam will enjoy a dependable supply of high-quality raw cashews.
=> Read more: Vietnam Cashew Nuts Supplier & Exporter | KIMMY FARM
The Worker harvesting Cashew Fruit at Cashew Farm
Vietnam imported nearly 1.9 million tons of cashew raw nuts in 2022
It is believed that this move by Vietnam has been prompted by the country’s ongoing struggle to secure an adequate supply of raw cashews for its processing industry. The Vietnam Cashew Association (Vinacas) has revealed that in 2022, Vietnam imported nearly 1.9 million tons of cashew raw materials, with an average unit price of $1,400 per ton. This amounts to a total expenditure of about $2.66 billion.
Based on reports from the Vietnam Cashew Association, many businesses importing cashew from Africa for production face the risk of not meeting processing standards. According to Vneconomy news, only 70% of imported cashews meet the required standards while the remaining 30% fail to meet the importers’ standards. These risks create a pressing need for Vietnam to tap into alternative sources of raw materials to sustain its cashew industry.
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Vietnam imported nearly 1.9 million tons of cashew raw nuts in 2022
Vietnam only provides 30% of RCN needed for Local Businesses
Vietnam’s cashew industry is facing the daunting task of sourcing enough raw materials for processing needs, according to Vinacas, a cashew trade organization. With a cashew-growing area of more than 300,000 hectares, Vietnam only provides 30% of the raw cashew nuts needed for local processing cashew factories. To address this challenge, Vinacas has recommended to the Ministry of Agriculture and Rural Development to facilitate a long-term plan for cashew growing areas and explore opportunities to team up with neighboring countries like Cambodia and Laos for the production and development of cashew material areas.
=> Read more: Vietnam Cashew Company Face Shortage Raw Cashew Nuts
With a cashew-growing area of more than 300,000 hectares, Vietnam only provides 30% of the raw cashew nuts needed for local processing cashew factories.
Kimmy Farm Vietnam with Customer Visit our Farm in Binh Phuoc Province, Vietnam
Source: Synthesize multiple sources
A brand specializing in the production and export of agricultural products in Vietnam. We have a black soldier fly farm in Tay Ninh and a cashew growing area in Binh Phuoc. The main export products of the company are: cashew nuts, cashew nut kernels, black soldier fly, frozen seafood, shrimp, prawns, catfish… from Vietnam.
