Cashew exports to the EU in 2022 target US$ 900 million

The EU is currently the second largest market for Vietnam's cashew nuts and exports to this region in 2022 are expected to reach US$ 900 million.

Processing cashew kernels for export at Hoang Son 1 Joint Stock Company. Photo: Hoang Son.

According to the Department of Import - Export (Ministry of Industry and Trade), the EU is currently the second largest cashew nut export market of Vietnam, accounting for 23% of the total export volume and 22% of the total export value of the whole industry.

Therefore, the growth of cashew nut exports to the EU contributed significantly to the overall growth of the cashew industry.

It is estimated that Vietnam's cashew exports to the EU market in 2021 has reached 135,000 tons, worth US$ 816 million, up 16.5% in volume and 7.9% in value compared to 2020.

This positive growth is due to the EU's high demand for cashew nuts in the last months of the year to serve the demand in the Christmas and the new year holidays.

Vietnam's cashew industry has now exported to 23 EU member markets. In particular, the cashew industry has well exploited the Dutch and German markets.

Specifically, in 11 months of 2021 up to November, Vietnam's cashew nut export turnover to the Netherlands reached over 63,000 tons, worth more than US$ 345 million, up 12.3% in volume, but down 4.1% in value.

During the same period, Vietnam's cashew nut exports to Germany reached more than 19,000 tons, worth more than US$ 122 million, up 9.5% in volume and 6.2% in value.

Germany and the Netherlands are currently important trading hubs for cashews in the EU. These two markets both import for domestic consumption and re-export to other markets in the bloc.

Vietnam's cashew industry has also exploited well other EU member markets, such as France, Spain and Poland. These are all good markets for cashew nuts.

In addition, cashew nut exports also experienced impressive growth in a number of other markets. For example, cashew nut exports to Finland increased 625% in volume and 629% in value in the 11 months of 2021 up to November.

In the last year, Vietnam's cashew industry has been quite successful when exploiting the gateway market in the EU such as the Netherlands and Germany, and also exploiting other important consumption markets or markets with great potential in EU, such as Finland, Poland, Belgium, Spain, Romania, Portugal...

With the above results, it can be said that Vietnam's cashew nut exports to the EU have had a quite successful year in the context of the complicated developments of the Covid-19 pandemic, difficulties in production, customs clearance and fees increase.

According to the Department of Import - Export, cashew exports to the EU in 2022 are expected to increase by about 15% in volume and 10% in value compared to 2021, reaching over 155,000 tons, and worth US$ 900 million.

This assessment is based on factors, such as supply, demand, and export prices tend to recover from the end of 2021.

According to data from the EU Statistical Office (Eurostat), in the first nine months of 2021, the EU's cashew imports volume reached 161.17 thousand tons, worth EUR 955.79 million, up 3.9% in volume over the same period in 2020.

In which, Vietnam is the largest source of cashew nuts for the EU. In the third quarter of 2021, the EU imported over 36 thousand tons of cashews from Vietnam, worth EUR 211.4 million, up 7.1% in volume and 5% in value compared to the third quarter of 2020.

In the first nine months of 2021, the EU imported 94,000 tons of cashews from Vietnam, worth EUR 520 million, up 6.6% in volume, but down 3% in value over the same period in 2020.

Cashew market share of Vietnam in total imports from the external market into the EU increased from 73.4% in 9 months of 2020 to 77.3% in 9 months of 2021.

In contrast, the EU reduced cashew imports from India, down 34.7% in volume and 40.2% in value, reaching 8,600 tons, worth EUR 59 million. India's share of cashew nut in EU’s total imports from the external market decreased from 11.5% in 9 months of 2020 to 7.4% in 9 months of 2021.

With the EVFTA coming into effect, the EU's import tax rate on cashew nuts from Vietnam at 0% is an advantage to help Vietnam's cashew industry increase exports to the EU and expand its market share.