EVFTA Agreement will create a boost for Vietnam’s cashew exports
The approval of EVFTA Agreement will help Vietnam’s cashew industry participate deeply in the global supply chain and increase the export scale to the EU market.
According to the Vietnam Cashew Association (VINACAS), although the Covid-19 epidemic has been spreading around the world; in the first 5 months of this year, cashew nut exports continued to be a bright spot as exports increased both in volume and value.
Specifically, in the past 5 months, the country exported over 190,000 tons of cashew nuts with export turnover of about 1.27 billion USD; up 19.23% in volume and up 3.07% in value compared to The first 5 months of 2019. These figures show that Vietnam is the brightest point of the world cashew industry; and is considered the leading processing and exporting center in the world; ranked above India, Africa countries and Brazil.
Also during this period, the US, EU and China were still the three largest cashew kernel consuming markets of Vietnam; in here, cashew consumption decreased in restaurants and hotels but increased sharply in supermarketing channels.
VINACAS said that the total supply of raw cashew in 2020 will reach nearly 4 million tons. From the beginning of the year until now, due to the impact of the pandemic; India stopped production and led to a decrease in the amount of imported cashews. Meanwhile, in Vietnam also started new crop production slowly, many production facilities temporarily closed ..; so this year there will be no shortage of raw materials.
At the same time, the EVFTA’s agreement to come here will contribute to promoting two-way trade, joining the global supply chain, increasing the scale of cashew exports, one of Vietnam’s key commodities. Currently, many businesses are ready to expand exports into this market, right after the Covid-19 pandemic was under control.