VietNamNet Bridge - Chinese enterprises want to buy Vietnam’s macadamia nuts in large quantity, but economists have advised Vietnamese enterprises to remain cautious when doing business with China.

Duong Cong Minh, chair of Vietnam Macadamia, said Vietnam would have 30 million macadamia plants in the next 10 years which would provide 350,000-400,000 tons, worth $1 billion.

Vietnam plans to build 30 macadamia nut preliminary processing and eight large-scale processing plants. The Vietnam Macadamia Association would also cooperate with international associations to develop the macadamia industry in Vietnam.

Vietnamese macadamia growers are optimistic about industry development in Vietnam. 

A report shows that macadamia in Vietnam in 2016 totalled 600 tons, and only 25 percent of the world’s demand is met.

Vietnam plans to build 30 macadamia nut preliminary processing and eight large-scale processing plants. The Vietnam Macadamia Association would also cooperate with international associations to develop the macadamia industry in Vietnam.

The Vietnam Macadamia Association working sessions with the leaders of Chinese Anhui and Zhejiang provinces, and the China Dry Fruit Association in mid-April found that the demand for dry nuts from China is very high.

Many Chinese enterprises confirmed their high demand, saying that the total macadamia output in Vietnam in the next 10 years is just enough for two processing plants in Anhui province.

The Chinese enterprises said that they preferred macadamia from Vietnam to South Africa, because they would have to pay lower transportation costs to import macadamia from Vietnam. 

Vietnamese macadamia growers and exporters now believe there is no need to worry about the consumption of macadamia.

However, analysts have warned that it is not easy to do business with Chinese. They have also expressed their worry about the plan to expand the macadamia material growing area.

Hoang Thanh Tiem from the Western Highlands Agro-Forestry Scientific and Technical Institute (WASI), said that macadamia is not easy to grow.

In Vietnam, only the Central Highlands and the northwest with the total area of 100,000 hectares, have the climate and soil conditions suitable to macadamia plantation. The plant can be grown in temperate zone and at the height of 700 meters or more. 

The expert, though affirming that Vietnam has great advantages to grow macadamia, including cheap labor costs, commented that Vietnam should follow China and grow macadamia on a large scale.

Deputy Minister of Agriculture Ha Cong Tuan expressed his concern about the markets for Vietnam’s macadamia nuts. It is true that the supply is not enough to satisfy global demand. However, Australia, South Africa and China all have plans to increase the supply by twofold by 2020.

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