Yet beneath the impressive figures lies an unsettling truth: Vietnam’s cashew sector  -  a billion-dollar industry  -  is increasingly reliant on imported raw materials.

In 2025 alone, Vietnamese firms spent nearly $4.5 billion to import around 3 million tons of raw cashew nuts  -  another record-breaking figure. Compared to 2024, raw cashew imports rose 17.7% in volume and soared 39.3% in value.

This surpassed the previous import peak of $4.18 billion set in 2021.

The average import price of raw cashews reached $1,525.2 per ton in 2025, marking an 18.2% increase over the prior year.

Cambodia emerged as Vietnam’s largest raw cashew supplier, accounting for 32.9% of total import value. It was followed by Ivory Coast (25.3%), Nigeria (9.3%), and Ghana (7.7%).

Compared to 2024, imports from all four countries grew significantly: up 38.7% from Cambodia, 47.6% from Ivory Coast, 42% from Nigeria, and 12% from Ghana.

Vietnam: the new cashew processing plant for Africa?

At a recent economic forum, Bach Khanh Nhut, Vice President of the Vietnam Cashew Association (VINACAS), warned that despite its export successes, Vietnam is losing its grip on the cashew value chain.

“Domestic raw materials only meet about 10% of demand. The remaining 90% comes from imports  -  mainly from African countries and Cambodia,” he said.

This dependence isn’t new, but it’s becoming increasingly problematic. Over the past five years, African countries have learned from Vietnam’s model: buying raw nuts, processing them into kernels, and exporting the value-added product. They’re now investing in machinery to handle 70% of the processing work.

However, the final 30%  -  involving delicate, manual handling  -  still requires the dexterity and precision of Vietnamese workers. African producers, unable to replicate this level of craftsmanship, are exporting semi-processed cashews to Vietnam, where the final touches are completed.

“As a result, Vietnam has unintentionally become the processing plant for African cashews,” said Nhựt. “We’re taking in semi-finished products, completing them, and then exporting.”

Statistics back up the shift. In 2020, Vietnam imported only a few tens of thousands of tons of semi-processed cashew kernels. By 2025, that number skyrocketed to 150,000 tons in just 11 months  -  the equivalent of 700,000 tons of raw cashews.

“At this rate, once Africa builds out its full processing capacity, Vietnam’s cashew industry could be left behind,” Nhựt warned.

An unfair trade landscape

According to VINACAS, the playing field is far from level. Many African countries have adopted policies that ban raw cashew exports early in the season, ensuring domestic processors get first access to the highest-quality nuts. Only after domestic needs are met do they allow exports  -  meaning Vietnamese firms often import second- or third-tier raw materials.

Meanwhile, African nations impose export taxes of 7–10% on raw cashews and offer subsidies for processed kernel exports  -  a double advantage for local processors and investors.

“In contrast, Vietnam imposes no taxes on either raw cashew imports or kernel exports,” Nhựt noted.

Policy changes urgently needed

To protect the industry, VINACAS has urged Vietnamese authorities to reconsider tax and import policies.

One proposed solution: follow India’s model by applying a minimum import price or a 25% tariff on semi-processed kernels. This would support local processors and protect domestic value creation.

Additionally, Vietnam could enforce stricter technical standards for imported cashew products  -  particularly on food safety and quality  -  to prevent the influx of subpar goods and maintain high international standards.

As Vietnam’s cashew industry continues to lead the world in exports, industry leaders say it must also lead in protecting its own future.

Tam An