VIETNAM CASHEW INDUSTRY: IF COMPLACENT, SUBJECTIVE, IT WILL LAG BEHIND!

“Cashews of Vietnam" - Vietnam's cashew brand has been confirmed in the world with 4 best ones: Maintaining the leading position in the world in exporting cashew kernels from 2006 to present. The cashew producing country recognized by international customerstohavethebestquality.Vietnamisthe country with the most advanced technology and equipment for processing cashew kernels and is the largest raw cashew importer for processing andexport.

On the occasion of the 12 VINACAS th Golden Cashew Rendezvous, we had a talk with Mr.PhamVanCong-ChairmanoftheVietnam Cashew Association (VINACAS) about the issue that the cashew industry must overcome challenges so that the world always thinks about Vietnam when the cashew industry is mentioned.

* In your opinion, how did COVID-19 pandemic appearring and lasting, then Russia - Ukraine war affect Vietnamcashewindustry?

First of all, I would like to emphasize, cashew nut always holds a high position in the group of key agricultural export products of Vietnam, exported to more than 100 countries and territories; is one of the nine largest groups with export strength of Vietnam participating in the Program on Building a Brand Strategy for Vietnam Food Industry. From 2020 to 2021, COVID19 pandemic disrupted supply chains, production and business fell into a serious crisis in many aspects and the Vietnam cashew industry was no exception. It could be said that this was a period when the global cashew industry, including Vietnam, encountered many difficulties in an unprecedented manner and now still has tofaceunforeseenchallenges...

Due to COVID-19 pandemic, for the past three years (in 2020, 2021, 2022), the biggest trade promotion activity of Vietnam cashew industry: the VINACAS Golden Cashew Rendezvous organized annually by VINACAS-a"rendezvous"ofthosewhoareinterestedin theworldcashewindustry–hadtobepostponed.

From the beginning of January 2023, China eased the management of COVID-19 pandemic, but with the Zero-COVID policy for the past three years, export to this market faced many difficulties. When the pandemic was not still been completely controlled, in February 2022, when the war between Russia and Ukraine occurred,theworldfacednewdifficulties,andthecashew industrywasnoexception

*Sir,whichotherchallengesaffectedthecashew processingandexportindustryinVietnam?

Recently, new challenges have appeared from the countries related to cashew industry activities, the countries that are major partners of Vietnam cashew industry, which have had a strong impact on the market and activities of Vietnam enterprises. That is the change and supplementation of trade policies of the cashew industry, such as specifying floor price of exporting raw cashew from African countries; sharply increasing the import tax and minimum price of Indian cashew nuts; Strictly regulating origin of goods, packaging, labeling of agricultural products and food imported across China's border, European food safety norms that are set at a too high level... Those policies has been and will be the pressure affecting the development of the cashew processing industry in Vietnam. The Vietnam cashew industry is facing challenges, but also new opportunities. The deeper and deeper integration of Vietnam with the world brings great opportunities for the cashew industry to develop production, business and market expansion, of course, the competition will be fiercer.

*Althoughwemasterequipmentandtechnology, thisisalsoabigproblemfortheindustry,isthatright,sir?

That's right! This is the strength of Vietnam cashew industry, but if we are complacent and subjective, we will fall behind. In terms of technology, Vietnam has not really mastered the technology of color sorting and sizing by machine. China is the country dominating this technology and Vietnam enterprises have recently brought equipment from India to this stage in the production line. Therefore, it is necessary to have a methodical strategy to increase the value of cashew nuts; promote cooperation with science and technology organizations to deploy programs to automate the entire cashew kernel processing procedures; shift from preliminary processing of cashew kernels and exporting semi-finished products to fine processing,bringingproductsdirectlytosupermarkets.

VINACAS is promoting the development of "Strategy to develop Vietnam cashew industry in a new situation" to submit to the Government. In which, proposing mechanisms and policies to achieve two objectives: Strongly develop deep processing to gain a worthy position in the global cashew value chain and strongly develop the raw material zone in the direction of qualityandefficiency.

But we think that, if viewed from a positive perspective, these challenges are also an opportunity to help Vietnam cashew industry gain more motivation, mobilize human and physical forces to once again conduct a "revolution" on technology and equipment, meeting the needsofdeeptransformationincashewprocessing.

*Thankyou,sir!