Surge in Vietnams Raw Cashew Imports Hits Record $3B in Less than 7 Months

As of mid-July, businesses in Vietnam have allocated over US$3 billion towards the importation of raw cashew nuts, primarily sourced from Cambodia. This represents the highest recorded amount for the same period. According to customs data, Vietnam had imported 1.81 million metric tons by July 15, reflecting a 4% increase in volume and a 12.3% rise in value compared to the equivalent period in the previous year.

Cambodia: The Leading Supplier

Cambodia remains the top supplier of raw cashew nuts to Vietnam, providing 54.2% of the total import volume and 56.3% of the total import value. Vietnam received 980,700 tons of cashews from Cambodia, valued at over $1.7 billion. This constitutes a 10.3% increase in volume and a 25.9% rise in value.

Though Vietnam is the world’s leading exporter of cashew kernels, the nation’s domestic raw material supplies only satisfy a portion of the processing industry’s needs. This necessitates large-scale importation of raw cashew nuts. Once the nuts have undergone preliminary processing and have been transformed into cashew kernels and other products, they are exported to key markets such as the U.S., China, and Europe.

Data from the Customs Department reveals that, by July 15, Vietnam had exported nearly 373,800 metric tons of cashew products, generating approximately $2.63 billion in export revenue. Compared to the same period last year, export volumes saw a minor reduction while export value experienced a 3.1% increase.

An Ongoing Trade Deficit

Despite being a global leader in cashew kernel exports, Vietnam’s cashew industry continues to experience a trade deficit. The import value exceeds the export value as demand for processing materials persists and the domestic supply fails to meet the country’s processing capacity.