Vietnam’s cashew sector should build up leading cashew enterprises are able to adjust production and set up stable material zones with high quality and especially a strong Vietnamese cashew trademark as the country becomes official member of WTO, if they do not want to be hit by foreign competitors, according to local experts.
Deputy Minister of Agriculture, Ta Quang Ngoc pointed out five advantages of the local cashew sector including high productivity and quality, low price and a firm foothold in the world market.
The number of cashew processing factories has increased from 60 to 219 with a total capacity of 674,000 tons per year. Seven of these factories are recognized as meeting HACCP standards while ten receive ISO certificates.
Vietnam’s cashew nuts have been available in 40 countries and territories worldwide with the US consuming 42 per cent, China 17 per cent, Australia 10 per cent and UK and Canada 5 per cent each.
“But Vietnam has sold cashew nuts only over the past ten years. Importers have to process before putting their products on market,” Nguyen Thai Hoc, vice chairman of Vietnam Cashew Association said, adding that WTO, with 0 per cent import tariff on raw cashew, is paving the way for foreign companies to seize Vietnamese material zones and make it a big material zone only.
Meanwhile, prices of processed cashew products are always much higher than raw ones.
Vietnam’s cashew productivity is higher than that of some other countries. However, cashew productivity is not equal in different material zones. In the past ten years, the sector posted an average growth of 6.55 per cent, but only in Southeastern region and central highlands provinces of Dak Nong and Dak Lak where cashew trees grow well.
Ngoc said, the sector, should keep the cashew area stable at 433,000 hectares and focus on raising cashew quality.
Meanwhile, Nguyen Thai Hoc, vice chairman of Vietnam Cashew Association said the sector should boost trade promotion in the domestic market because Vietnam, with more and more well-off people, also has a good potential market.
“Presently, as many as 97 per cent of Vietnamese cashew are earmarked for export and the 3 per cent figure for local market is so small,” Hoc said, adding that the rate in India, the biggest cashew producer in the world is 50-50 per cent.
Vietnam is estimated to have exported 117,000 tons of cashew nut, worth US$466 million, in the Jan-Nov period, down nearly 3 per cent and 18 per cent on year, respectively.
(Liberated Saigon, GSO Nov Edition)
Vietnamese
