As the cashew industry continues to play a critical role in Vietnam’s economy, Cambodia has emerged as the largest supplier of cashews to Vietnam, overtaking other traditional markets. With rising production capabilities and strategic market growth, Cambodia’s contribution to Vietnam’s cashew imports has surged, significantly impacting the supply chain and export dynamics. This article explores Cambodia’s dominant position, Vietnam’s cashew import trends, and the prospects for the cashew industry as we approach the year-end holiday season.

Cambodia Takes the Lead in Cashew Supply to Vietnam

Vietnam’s Cashew Import Trends

Vietnam’s cashew imports saw a notable shift in August 2024. Data from the General Department of Customs reveals that Vietnam imported over 211,000 tons of cashews in August, valued at more than $283 million. This marked a decrease of 27.5% in volume and 18.2% in value compared to the previous month. The decline, however, does not reflect broader trends over the year, as the overall import statistics for the first eight months of 2024 paint a more balanced picture.

From January to August, Vietnam imported more than 1.9 million tons of cashews, with a total turnover of over $2.4 billion. While this represents a slight 4.1% drop in volume and a 2.2% decrease in value compared to the same period in 2023, Cambodia’s supply to Vietnam has grown significantly, offsetting some of these declines.

Cambodia: Vietnam’s Top Cashew Supplier

Cambodia has become Vietnam’s largest supplier of raw cashews, delivering over 797,000 tons of the nut, with a total trade value exceeding $1 billion. This marks a remarkable increase of 32% in volume and 25% in value compared to the same period in 2023. The average import price from Cambodia reached $1,292 per ton, which is 5% lower than the previous year, further boosting Cambodia’s competitiveness in the Vietnamese market.

This rapid growth is a result of Cambodia’s robust cashew farming sector, which has expanded dramatically over recent years. As of 2022, Cambodia had 435,733 hectares of land dedicated to cashew farming, with a production output of 508,283 tons. The majority of Cambodia’s cashew exports—98.5%—are destined for Vietnam, highlighting the critical trade relationship between the two nations.

Other Key Cashew Suppliers to Vietnam

Although Cambodia has taken the top spot, other suppliers continue to play vital roles in Vietnam’s cashew import portfolio. Côte d’Ivoire, once the leading exporter to Vietnam, now ranks second. By the end of August 2024, Vietnam imported over 394,000 tons of cashews from Côte d’Ivoire, with a total value of more than $459 million. However, this represented a 30% decrease in volume and a 27% drop in value compared to the same period in 2023.

Ghana remains Vietnam’s third-largest supplier, exporting over 236,000 tons, valued at $266 million. Despite the challenges facing Côte d’Ivoire, Ghana’s exports saw a 10% increase in volume and a 13% increase in value. The average price of cashew imports from Ghana rose by 3% to $1,096 per ton, reflecting strong market demand for Ghanaian cashews.

Challenges in the Cashew Supply Chain

While Cambodia’s cashew production continues to rise, there are some challenges associated with the current crop. Approximately 70% of this year’s harvest consists of larger-sized cashews, making it difficult for Vietnamese companies to meet demand for smaller-sized cashew nuts, which certain importers prefer. This shortage in the desired product size could influence Vietnam’s ability to satisfy some international market requirements.

Vietnam’s Cashew Export Performance and Price Trends

In recent months, Vietnam has experienced a steady increase in cashew export prices. The average export price of Vietnamese cashews reached $6,326 per ton in August, reflecting a 2.6% increase compared to July 2024 and a 14.8% increase compared to August 2023. This is the fourth consecutive month of rising export prices, indicating strong demand in global markets.

However, despite the recent price surge, the average cashew export price during the first five months of 2024 remained below 2023 levels. Consequently, the overall average export price for the first eight months of the year decreased by 0.9% compared to the same period last year.

In terms of export volume, Vietnamese companies have exported 486,000 tons of cashews in the first eight months of 2024, with a total value of $2.77 billion. This represents a significant 22.9% increase in volume and a 21.8% increase in value compared to the same period last year.

Positive Outlook for Vietnam’s Cashew Industry

Despite fluctuations in the global market, industry experts remain optimistic about Vietnam’s cashew export prospects for the remainder of the year. The upcoming holiday season is expected to drive increased demand for cashews, as international buyers stock up for celebrations and festivities. As Vietnam continues to strengthen its position as the world’s leading cashew exporter, collaboration with key suppliers such as Cambodia will remain essential to sustaining growth and meeting global demand.

In summary, Cambodia’s emergence as Vietnam’s top cashew supplier represents a significant shift in the global cashew market. With rising export prices and increased demand, Vietnam’s cashew industry is well-positioned to maintain steady growth, bolstered by its strong partnerships with suppliers like Cambodia, Ghana, and Côte d’Ivoire. As the year draws to a close, the industry is set to benefit from rising demand, particularly for the holiday season, solidifying Vietnam’s leading role in global cashew exports.

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