Vietnam’s Cashew Nut Industry: Overview 2024

Vietnam’s cashew nut industry continues to assert its position as a global leader in 2024, maintaining its status as the world’s largest exporter of cashew kernels. The industry has grown steadily due to its robust supply chain, advanced processing techniques, and access to international markets. Cashew nuts remain a vital agricultural export, contributing significantly to Vietnam’s economy, with key markets including the United States, Europe, and China.

Despite its dominance, the industry faces challenges such as heavy reliance on imported raw cashew nuts, fluctuating global demand, and competitive pressures from emerging producers in Africa and Asia. Vietnam imports a lot of its raw cashew nuts from African countries, underscoring the industry’s dependency on external sources. Efforts to enhance domestic production and secure sustainable raw material supplies have become crucial priorities for the sector.

In 2024, Vietnam’s cashew industry is also adapting to shifts in consumer preferences, with increasing demand for value-added products such as roasted and flavoured cashews. The adoption of advanced processing technologies and sustainable farming practices is helping the industry meet global standards while ensuring long-term growth and competitiveness in an evolving market.

Vietnam’s cashew industry in numbers

These figures underscore Vietnam’s robust cashew processing capabilities and its strategic role in the global cashew supply chain. The industry’s growth is driven by expanding export markets and a steady supply of raw materials, positioning Vietnam as a pivotal player in meeting the increasing global demand for cashew products.

Vietnam cashew nut Industry size

The Vietnam cashew market is projected to grow from an estimated US$4.80 billion in 2024 to US$6.40 billion by 2029, with a compound annual growth rate of 5.80 percent during the forecast period. This growth is driven by Vietnam’s strong export capabilities, advanced processing infrastructure, and expanding global demand for cashew products, according to a Mordor Intelligence report.

Vietnam cashew nut imports and exports

Vietnam’s cashew nut industry has demonstrated significant activity in both imports and exports throughout 2024, reinforcing its status as a leading global player.

Vietnam cashew nut imports by source country, October vs. September 2024

Source: Vietnam Imports Tracker

Vietnam cashew nut exports by destination, October vs. September 2024

Source: Vietnam Exports Tracker

Key players in Vietnam’s cashew nut industry

As a leading global producer and exporter of cashew nuts, Vietnam has a well-established industry comprising numerous companies involved in cultivation, processing, and export. Notable cashew producers in Vietnam include:

Olam Vietnam Co., Ltd

Olam Vietnam Co., Ltd is a subsidiary of the Singapore-based Olam International, one of the world’s largest agricultural commodities companies. Olam Vietnam has a strong presence in the Vietnamese cashew industry, operating advanced processing facilities to ensure high-quality production. The company sources raw cashew nuts from farmers and cooperatives, offering them access to international markets. Its vertically integrated approach allows for efficient processing and a focus on sustainability in its operations, contributing to Vietnam’s reputation as a global cashew exporter.

Kimmy Farm

Kimmy Farm is a well-known Vietnamese company located in Binh Phuoc province, the heart of Vietnam’s cashew production. The company is engaged in the cultivation, processing, and export of high-quality cashew nuts. Kimmy Farm prides itself on sustainable farming practices, offering a range of cashew grades to cater to various international markets. The company focuses on traceability, ensuring customers receive ethically sourced and processed products. Its efforts in research and development support advancements in cashew farming techniques.

Lafooco (Long An Food Processing Export Joint Stock Company)

Lafooco, established in 1985, is one of Vietnam’s leading cashew nut processing and export companies. Based in Long An province, the company specialises in producing a variety of cashew products, including roasted, salted, and flavoured nuts. Lafooco’s facilities are equipped with modern technology to ensure the highest standards of quality and food safety. The company exports to over 30 countries, making it a key player in Vietnam’s cashew industry. It also supports local farmers through partnerships, fostering sustainable growth in the sector.

The PAN Group

The PAN Group is a diversified agribusiness and food corporation with significant investments in Vietnam’s cashew industry. Through its subsidiaries, such as Lafooco, PAN Group is involved in cashew processing, packaging, and export. Its operations focus on innovation and sustainability, ensuring environmentally friendly production processes. The group has a strong presence in both domestic and international markets, leveraging Vietnam’s advantages in agricultural exports to grow its portfolio.

Donafoods (Dong Nai Agricultural Products Import-Export Processing Joint Stock Company)

Donafoods, based in Dong Nai province, is a major processor and exporter of cashew nuts. The company is known for its high production capacity and emphasis on quality control. Donafoods collaborates with local farmers and cooperatives to source raw cashews, ensuring fair pricing and stable supply chains. Its export products include whole nuts, broken nuts, and value-added products such as flavoured cashews. Donafoods has a strong reputation in international markets, contributing to Vietnam’s leadership in the global cashew trade.

Vegetexco Binh Phuoc

Vegetexco Binh Phuoc is one of the oldest cashew processing companies in Vietnam, established in 1998. Located in Binh Phuoc province, the company is strategically positioned in the country’s main cashew-producing region. Vegetexco focuses on high-quality processing methods, producing raw and roasted cashew nuts for both domestic and international markets. The company is also involved in research to improve cashew tree yields and processing efficiency, ensuring its continued competitiveness in the industry.

Vietnam’s main cashew nut products

Vietnam produces a diverse range of cashew nut products to meet the needs of international markets. The main categories include:

Raw cashew nuts

Vietnam exports unprocessed cashew nuts, which are typically sent to other countries for processing. The country sources these nuts domestically and supplements supply by importing from African countries like Côte d’Ivoire.

Processed cashew kernels

Processed kernels are Vietnam’s primary export product. They are classified into various grades, such as whole white kernels (W320, W240, W450), split kernels, and broken pieces, based on size, colour, and quality. The W320 grade is the most popular globally.

Roasted cashew nuts

Roasted cashew nuts, available salted or unsalted, are sold as ready-to-eat snacks. These are particularly popular in North America and Europe, where value-added products are highly sought after.

Flavoured cashew nuts

Vietnamese producers cater to diverse tastes with flavoured cashews, including honey, chocolate, garlic, chilli, and wasabi varieties. These are especially popular in Asia and the Middle East.

Cashew nut oil

Extracted from cashew kernels, this oil is used in food production as well as in cosmetics and pharmaceuticals. While a smaller segment of the market, it is growing in popularity due to its versatility.

Cashew shell liquid (CNSL)

CNSL, derived from the outer shells of raw cashews, is a valuable by-product used in industrial applications such as paints, varnishes, and lubricants.

Cashew-based confectionery

Producers are expanding into cashew-based products like cashew butter, spreads, and energy bars. These cater to the rising demand for health-conscious and premium food options globally.

Vietnam’s ability to diversify its cashew product offerings enhances its position as a global leader in the industry.

Cashew nut regulations in Vietnam

Exporting cashew nuts from Vietnam involves adhering to specific regulations and procedures to ensure compliance with both domestic laws and international standards. Key aspects include:

Export policy and licensing

According to Decree No. 69/2018/ND-CP, cashew nuts are not listed among goods prohibited from export. Therefore, businesses can export cashew nuts without requiring special licenses, provided they comply with general commercial laws.

Phytosanitary certification

Cashew nuts are subject to plant quarantine regulations. Exporters must register for quarantine for each shipment and follow the procedures outlined in Circular No. 11/2021/TT-BNNPTNT. This includes obtaining a Phytosanitary Certificate to confirm that the nuts are free from pests and diseases.

HS codes and taxation

The Harmonized System (HS) codes for cashew nuts are:

• 0801.31.00: Unpeeled cashews
• 0801.32.00: Peeled cashews

Export tax for cashew nuts is 0%, and Value Added Tax (VAT) on exported goods is also 0%, enhancing the competitiveness of Vietnamese cashew nuts in international markets.

Customs documentation

Exporters must prepare a comprehensive customs dossier, including:

• Customs declaration
• Sales contract
• Commercial invoice
• Packing list
• Bill of Lading
• Phytosanitary Certificate
• Certificate of Origin
• Other documents as required by the importing country

Accurate and complete documentation is crucial for smooth customs clearance.

See also: How to Export Food from Vietnam 

Quality Standards and Packaging

Compliance with international quality standards is essential. This involves proper sorting, grading, and packaging of cashew nuts to meet the specific requirements of importing countries. Adhering to these standards helps maintain product quality and safety during transit.

Market-Specific Regulations

Different markets may have additional requirements. For instance, exporting to the United States requires compliance with the Food and Drug Administration (FDA) regulations, while the European Union has its own set of standards. Exporters should stay informed about the specific regulations of their target markets to ensure compliance.

By adhering to these regulations and procedures, Vietnamese cashew exporters can effectively navigate the complexities of international trade, ensuring their products meet global standards and reach markets efficiently.

What’s next?

Vietnam is the world’s leading producer and exporter of cashew nuts, contributing over 50 percent of the global supply. The industry plays a significant role in the country’s economy, generating billions of US dollars in export revenue annually. Concentrated primarily in provinces like Binh Phuoc, Vietnam’s “cashew capital,” the sector benefits from a favourable climate, skilled labour, and advanced processing capabilities.

Notably, this market is dynamic and firms looking to keep track of developments in Vietnam’s cashew nut industry should make sure to subscribe to the-shiv.