February 2022: Cashew nut exports decrease compared to January 2022

In February 2022, Vietnam’s cashew exports only reached 25.32 thousand tons, worth 150.7 million USD, down 37% in volume and 36.8% in value compared to January 2022. It is forecasted that in the short term, Vietnam’s cashew nut exports will remain low because there are too many disadvantages waiting…

Vietnam's cashew exports to many markets decrease

According to statistics from the General Department of Customs, in February 2022, Vietnam’s cashew exports only reached 25.32 thousand tons, worth 150.7 million USD, down 37% in volume and down 36.8%. in value compared to January 2022, but compared to February 2021, an increase of 15.2% in volume and an increase of 18.2% in value.

In the first two months of 2022, Vietnam’s cashew exports reached 65.46 thousand tons, worth 389 million USD, down 2.6% in volume and 1.3% in value over the same period in 2021.

In terms of average export prices: In February 2022, the average export price of Vietnam’s cashew nuts reached US$5,950/ton, up 0.3% compared to January 2022 and up 2.5% compared to January 2022. February 2021. In general, in the first two months of 2022, the average export price of Vietnam’s cashew nuts reached $5,943 per ton, up 1.3% over the same period in 2020.

About the market: In February 2022 compared to February 2021, Vietnam’s cashew nut exports to many markets increased, while exports to the Netherlands, China, Australia, Canada, and Russia decreased. In general, in the first two months of 2022, Vietnam’s cashew nut exports to many markets decreased, but exports to the United States, Germany, Australia, Italy, UK, and Saudi Arabia increased over the same period in 2021.

Source: Calculation from data of the General Department of Customs

The Import and Export Department (Ministry of Industry and Trade) forecasts that in the short term, Vietnam’s cashew nut exports will remain low because there are too many disadvantages waiting. First of all, according to the cyclical factor, the first quarter is the time when Europe usually imports cashews at a low level, so it is forecasted that even in March, it is difficult for cashew exports to this region to increase sharply. The second is that Vietnamese cashew exporters are entangled in a suspected fraud of 100 containers of cashews exported to Italy…

Regarding the case of cashew nut containers exported to Italy showing signs of fraud, the Ministry of Industry and Trade has directed the Commercial Counselor in Italy directly to the ports of Genoa, Naples, where the shipments are taken, Working with port management units, shipping lines, banks and local authorities, it is recommended that the delivery of goods be temporarily suspended in order to have time to clarify the case.

The Vietnam Trade Office in Italy has also supported businesses to approach lawyers in Italy for advice and carry out necessary legal procedures to help Vietnamese businesses control their shipments.

The Vietnam Trade Office in the US contacted the brokerage company for the above-mentioned cashew nut sales contracts, requested information and actively cooperated with Vietnamese businesses to handle and ensure profits. legitimate interests of Vietnamese enterprises.

The Ministry of Industry and Trade sent a note to the Italian Embassy in Vietnam, sending officials to work with the Embassy, requesting the Embassy to coordinate with Vietnamese agencies to solve the case.

The Minister of Industry and Trade sent a letter to the Minister of Foreign Affairs and International Cooperation, the Minister of Economy and Finance of Italy, asking the Italian Ministers to pay attention and direct relevant units to coordinate with the Ministry of Finance. agencies of Vietnam, the Embassy of Vietnam in Italy to quickly resolve the case, protect the legal rights of Vietnamese businesses as well as the image and reputation of Italian businesses.

Russia-Ukraine tensions do not have much impact on cashew exports

Currently, there is no conclusion on the nature of the case that the cashew nut containers exported to Italy show signs of fraud, but through this case, the Ministry of Industry and Trade recommends businesses when participating in import and export activities. Importers in all other markets need to carefully check and authenticate partners through many different channels, including the channel of the Vietnam Trade Office in other countries.

The Import-Export Department (Ministry of Industry and Trade) affirmed that in international trade activities, there are still risks, including fraudulent activities. At present, there is no conclusion on the nature of the case of cashew containers in Italy, but if this is a fraud, the seriousness is reflected in the involvement of many Vietnamese exporting enterprises with a volume of up to dozens of containers of things. This shows that the scam was elaborately staged on a large scale.

The story of the cashew kernel containers in Italy is not over yet, the parties need to join hands to find the most possible solution to support businesses, thereby also drawing the necessary lessons for agricultural exports to continue to grow. up. In the context of the volatile international situation, businesses need to be more careful to have contingency plans for risks in commercial transactions in general.

Source: BBC News

In fact, apart from the disadvantages and difficulties mentioned above, the current geopolitical tension between Russia and Ukraine is not considered to have much impact on Vietnam’s cashew exports. Because Vietnam’s cashew nut volume is mainly exported to the United States and the European Union, while exports to Russia are low.

According to statistics from the Russian Customs Service, the country’s cashew imports in 2021 will reach 15.2 thousand tons, worth $61.62 million, up 40.5% in volume and up 36.2% in value compared to 2020.

In 2021, the average import price of Russian cashews will reach US$4,054/ton, down 3.0% compared to 2020. In which, the average import price of Russian cashews from most sources will decrease, except Belarus.

Source: Russian Customs Service (*) Note HS 080131 Cashew nuts, fresh or dried, not shelled; HS 080132 Cashew nuts, fresh or dried, shelled

Regarding the supply market in 2021, Russia increased its imports of cashew nuts from Vietnam and Belarus, but reduced imports from the markets of India, Mozambique, and Nigeria. Statistics from the Russian Customs Service show that in 2021, Russia imported 9.47 thousand tons of cashews from Vietnam, worth 54.45 million USD, up 58.8% in volume and 44. 5% in value compared to 2020. Vietnam’s cashew nut market share in total Russian imports increased from 55.17% in 2020, to 62.33% in 2021. 

In 2021, Russia increased its imports of cashews from Belarus, up 23.1% in volume and 23.5% in value compared to 2020, reaching approximately 5.5 thousand tons, worth 5.68 million USD. The market share of Belarusian cashew nuts in Russia’s total imports decreased from 41.24% in 2020 to 36.12% in 2021. 

As can be seen, the Vietnamese cashew industry is currently dominating the Russian market. With the advantage of supply, product quality and making good use of opportunities brought by the Free Trade Agreement between Vietnam and the Eurasian Economic Union (EAEU), Vietnam’s cashew industry will continue to hold onto the market. Russia in 2022 and subsequent years. Vietnamese businesses will try to overcome difficulties in the Russian market in the context of the current conflict.

In order to promote cashew exports in March and the second quarter of this year, in the immediate future, the Import-Export Department (Ministry of Industry and Trade) recommends businesses to focus more on the UK, Netherlands, Germany and China markets. .

According to ITC statistics, in 2021, the UK’s cashew imports will reach 23.4 thousand tons, worth US$151.28 million, up 4.9% in volume and 0.9% in value compared to 2020. Of which, the UK imported 16.5 thousand tons of cashews from Vietnam, worth US$97.63 million, up 6.3% in volume and 7.0% in value; from the Netherlands reached 3.45 thousand tons, worth 24.28 million USD, up 46.3% in volume and 30.4% in value; from Germany reached 2.22 thousand tons, worth $ 19.37 million, up 5.0% in volume, but down 5.7% in value compared to 2020. 

The average import price of British cashew nuts in 2021 will reach 6,464 USD/ton, down 3.8% compared to 2020. In which, the average import price of British cashew nut from Vietnam increased by 0.7%, to 5,920 USD/ton; from the Netherlands decreased by 10.9%, down to 7,033 USD/ton; from Germany decreased by 10.2%, to USD 8,729/ton. 

According to Eurostat, Vietnam is the largest source of cashew nuts for the EU, reaching 110.8 thousand tons, worth EUR 644.6 million in the first 11 months of 2021, up 8.6% in volume and 1.4% in value. Vietnam’s cashew nut market share in total EU imports increased from 54.1% in 11 months of 2020, to 55.76% in 11 months of 2021.

Source: Vietnamese/ E-time

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