The year 2026 marks new milestones for Vietnam's cashew industry as export turnover continuously maintains impressive growth momentum. However, behind the multi-billion-dollar figures lies a challenging reality that enterprises are confronting.

The "no. 1 standing" paradox and raw material thirst

Despite maintaining its position as the world's cashew processing hub, Vietnam's cashew industry faces a paradox: rising exports alongside heavy reliance on imported raw materials.

According to Vietnam Customs, in the first 7 months of 2026, Vietnam exported 412,000 tons of cashews valued at 2.9 billion USD, while raw material import turnover reached 3.2 billion USD, up 10%. The value of imported raw materials surpassing export turnover indicates severe pressure on capital and input costs.

According to the Vietnam Cashew Association, domestic cashew nut production stands at merely around 300,000–400,000 tons annually, whereas processing capacity exceeds 6 million tons. This gap forces enterprises to import over 90% of raw materials, primarily from Cambodia and African nations.

"Raw cashew nuts are considered the foundation of the value chain. If the raw material stage is not handled well, numerous obstacles will follow downstream," said Mr. Pham Ngoc Thanh, Deputy General Director of Ha My Joint Stock Company. According to him, reliance on external supplies leaves enterprises vulnerable to geopolitical volatility and policy shifts in exporting countries.

Pressure escalates further as West African nations boost domestic processing and impose raw cashew export tariffs to retain value-added gains. In Côte d'Ivoire, domestic processing output rose by 67% in 2025, narrowing supplies available for Vietnamese enterprises.

Meanwhile, raw material costs have risen faster than selling prices. The Agency of Foreign Trade recorded a 48% increase in import costs against only a 25% increase in volume. Raw materials account for approximately 80% of production costs, placing intense pressure on enterprise profit margins.

Technical barriers and the "yardstick" of enterprise capacity

International markets, particularly the EU and the United States, are increasingly tightening requirements regarding food safety, origin traceability, and environmental standards, compelling cashew enterprises to elevate standard-compliance capacity.

According to Mr. Pham Ngoc Thanh, Deputy General Director of Ha My Joint Stock Company, technical barriers effectively serve as a "yardstick of enterprise handling capacity." He shared: "In new markets with unfamiliar import regulations, preparing dossiers to verify standards consumes substantial time, leading to missed peak sales opportunities during the year."

Consequently, enterprises must invest in management systems such as BRC, HACCP, FDA, and sustainability certifications. Digitizing origin traceability not only satisfies market mandates but also establishes a foundation to build trust and elevate product value.

However, another paradox is that despite leading the world in cashew kernel exports, Vietnam still lacks brands holding a commensurate standing in the international arena. Mr. Thanh assessed:

"We participate in the entire process of creating high-quality products, yet the added value returned is extremely modest... Many products sold abroad clearly state 'Raw materials imported from Vietnam' but carry foreign brand names and retail at prices many times higher."

Relying on cashew kernel exports and toll processing prevents Vietnamese brand value from being fully realized. This represents a bottleneck that must be resolved through systematic enterprise and industry branding strategies.

Solutions for the future: deep processing and circular economy

To overcome current difficulties, the cashew industry needs a decisive shift toward deep processing. Price differentials among kernel grades serve as the clearest proof: while popular WW320 kernels are priced around 7.2–7.5 USD/kg, premium whole grades such as WW180 can reach nearly 9.5–9.8 USD/kg.

Assoc. Prof. Dr. Nguyen Dinh Tho, from the Institute of Strategy and Policy on Agriculture and Environment, assessed that the cashew industry requires a global restructuring roadmap focusing on supply chain transparency and deep processing value. A promising new pathway is exploiting cashew shell by-products to produce cashew nut shell liquid (CNSL) serving the biochemical sector. Calculations suggest that each unit of processed raw material can yield an additional ~231 USD in profit from by-products, helping buffer raw cashew price volatility.

Locally, ecological agriculture models are being scaled up. In Binh Phuoc, intercropping cocoa and coffee under the cashew canopy has helped raise farmer incomes from 40 million VND/ha to 90–120 million VND/ha.

To realize the 10.5 billion USD target, enterprises and experts recommend that the Government take more decisive actions. Mr. Pham Ngoc Thanh proposed 5 core solution groups: stabilizing raw material zone quality and driving digital traceability; increasing research investment and popularizing deep-processing technology while diversifying products; supporting enterprises in trade promotion and international standard compliance; accelerating regional and national cashew brand development; and training professional human resources in technology, international trade, and marketing for the cashew sector.

With a 100 trillion VND credit package supporting agriculture and the completion of logistics infrastructure such as the Cai Mep – Thi Vai deep-water port complex, Vietnam's cashew industry holds vital footholds to achieve breakthroughs. However, success will materialize only if the industry resolutely moves away from volume-dependent models to transition toward an ecosystem driven by technology, transparency, and high added value.

Source: Bao dien tu Chinh phu