With China's increasing demand, Vietnam boosts exports and wants to bring cashew nuts deeper into this market.

The Agency of Foreign Trade (MOIT) reports a significant surge in cashew nut exports to China during the first months of this year. In the first quarter alone, cashew exports to China amounted to nearly 24,000 tons, valued at USD 131 million. This marks an impressive increase of 104% in volume and 76% in value compared to the same period in 2023.

Among Vietnam's top ten cashew nut export markets, China's growth rate is second only to Russia, surpassing the growth rates of other major markets such as the US, UAE, Germany, UK, and Canada.

The strong growth trajectory of the Chinese market has continued into 2024, following its robust performance in 2023. Last year, Vietnam exported 80,000 tons of cashew kernels to China, amounting to nearly USD 462 million. This represented a remarkable increase of 57% in volume and 51% in value compared to 2022.

The resurgence in demand for cashew nuts in the Chinese market is attributed to the relaxation of the Zero Covid policy in the country. Additionally, promotional programs for cashew kernel consumption in China during the first quarter of 2024 have contributed to the market's strong performance and favorable consumption trends.

The Agency of Foreign Trade highlighted that the Chinese market has shown a preference for Vietnamese cashew nuts in Asia due to their stable year-round supply and excellent product quality. Moreover, the Asian region's insulation from tensions in the Red Sea further enhances the favorable conditions for Vietnam's cashew exports.

Mr. Vu Thai Son, Chairman of the Binh Phuoc Cashew Association, also expressed optimism about the cashew consumption outlook in Asian countries, particularly China, Japan, and Korea, in 2024. He noted that these markets are less affected by the Russo-Ukrainian War and are actively promoting consumer market development.

In addition to cashew kernels, the Chinese market is increasingly importing value-added products from Vietnamese cashew nuts. Mr. Son cited examples such as salted roasted cashews, chili garlic cashews, spiced cashews, sesame-coated cashews, and honey cashews, which have seen strong demand.

As China stands as the second-largest market for Vietnamese cashew nuts after the US, the Vietnam Cashew Association (Vinacas) plans to organize a trade delegation to the Chinese market this year. In August, Vinacas will hold a seminar and meeting with Chinese grain industry traders in Hangzhou to explore opportunities for cooperation and trade development between Vietnamese cashew producers and processors and potential Chinese customers.

This event aims to not only promote the Vietnamese cashew brand but also showcase achievements and innovations in cashew processing technology, providing Chinese traders and consumers with a comprehensive understanding of the Vietnamese cashew industry.

Vinacas aims to showcase Vietnam's cashew industry's development potential, processing capacity, and commitment to "cleaner production" and adherence to international standards and global consumption trends during the upcoming event. Vietnamese businesses will not only engage in buying and selling cashew kernels but also promote products with high added value, including salted fried cashews, roasted cashews, spiced cashews, honey cashews, and organically produced cashew candies.

The association hopes to facilitate direct sales contracts between Vietnamese cashew businesses and major Chinese roasters, retail groups, and supermarkets. This move would enable Vietnamese cashew nuts to reach end users in the Northern region of China, expanding beyond intermediate importers primarily concentrated in the Southern region bordering Vietnam.

Additionally, both Vietnam and China anticipate an increase in official cashew nut exports through their respective seaport systems, replacing the traditional method of road exports through border gates in provinces such as Lang Son, Lao Cai, and Quang Ninh.

By organizing a trade delegation in the Chinese market, Vinacas seeks to gather feedback, address questions, and respond to recommendations from Chinese customers. This collaborative approach aims to strengthen the relationship between Chinese importers and Vietnamese exporters, ultimately increasing Vietnamese cashew nut exports to China and the broader North Asian region. This initiative is expected to enhance production and business efficiency for Vietnamese cashew processing enterprises.