Cambodia’s $12 Million Cashew Processing Plant: Will It Challenge Vietnam’s Global Leadership?

Cambodia’s $12 Million Cashew Processing Plant: Will It Challenge Vietnam’s Global Leadership?

A new $12 million cashew processing plant, covering 12,000 square meters, is set to open in Kampong Thom, Cambodia, in March 2025. This large-scale facility, backed by the Singapore-based CSNC, is expected to process 40 tons of cashews daily—equivalent to over 12,000 tons annually, aimed primarily at the export market.

A Direct Path to China for Cambodian Cashews

According to Mr. Suy Kokthean, Vice President of the Cambodia Cashew Association (CAC), the initial processed cashew shipment from this plant will be sent to China, marking a direct export path after packaging in Hainan. Previously, Cambodian cashews were mainly sold to Vietnam, with nearly 90% of Cambodia’s raw cashews being exported there for processing and re-export. However, with increased processing capacity, Cambodia now aims to export directly to China, bypassing Vietnam.

Cambodia’s Vision for Global Leadership

Supported by government policies, Cambodia’s cashew industry has expanded rapidly in recent years, aiming to become the world’s top cashew producer within the next five to six years. Cambodia currently has the world’s third-largest cashew cultivation area, covering approximately 580,117 hectares, and it expects a 2024 yield of around 800,000 tons.

The Competitive Impact on Vietnam’s Cashew Industry

Vietnam, the world leader in cashew processing and exports, sourced a significant portion of its raw cashews from Cambodia. However, as Cambodia pivots toward processed exports, the supply of raw cashews to Vietnam could decrease. African and Cambodian exporters are also shifting focus from raw to processed cashew exports, further intensifying the competition.

In response, the Vietnam Cashew Association has proposed that Vietnamese companies collaborate with Cambodia and southern Laos to secure a steady supply of raw cashews. This strategy includes research partnerships and the transfer of high-quality seeds and agricultural technology, enabling Vietnam to sustain its processing dominance and protect its position as a global leader.