Cashew nut imports reached more than 2.3 million tons worth more than US$2.89 billion over the past ten months of the year, down 8.5% in volume and 1.1% in value compared to the same period from last year.

Decree 15, which aims to ensure the food safety of imported food products, creates problems for the cashew industry, particularly for companies importing raw cashew from Africa, a seminar heard in Bình Dương Province on Monday.

Cashew nuts are one of the exports which have created a large market for Vietnam, however, the industry faces the risk of trade deficit due to higher raw material prices.

Vietnam was the largest importer of cashew nuts from Cambodia with import volume reaching 786,530 tonnes worth roughly US$1 billion, accounting for nearly 95% of Cambodia's raw cashew output during the seven-month period.

The escalating cost of cashew imports, which has reached $2.3 billion this year, highlights a troubling trend in Vietnam's agriculture as cashew orchards give way to durian plantations.

Cambodian cashew nuts account for 55.5% of Vietnam's total import turnover in the first half of this year.

One cashew tree can absorb 400 kilograms of carbon, while one hectare of cashew low-carbon growing area can bring $400 from carbon credit sales.

The cashew industry is at risk of disruption since raw nut exporters in West Africa are not fulfilling their contracts with local firms, according to the Việt Nam Cashew Association (Vinacas).

As of April 15, Vietnam had exported 183,300 tons of cashew nuts worth $984.6 million, while it had spent $1.04 billion to import 834,000 tons of raw nuts. The trade deficit connected to the product has returned.

The United States remains Vietnam’s largest cashew export market, recording 39,142 tonnes of exports worth more than US$208 million in the first quarter of the year, according to figures released by the General Department of Vietnam Customs.

The three-day 13th Vinacas Golden Cashew Rendezvous saw its main event kick off in the central province of Quang Binh on February 27, attracting participants from more than 40 countries and territories worldwide.

Vietnam’s cashew industry eyes export growth despite global headwinds, according to insiders.

Vietnam’s cashew exports in August alone reached a new record high of 60,580 tonnes worth US$333.83 million, according to figures released the Ministry of Industry and Trade.

After being No 1 in cashew nut exports in the world for the last two decades, the unexpected reversal from a  trade surplus to trade deficit has caused Vietnam’s cashew position to wobble.

Vietnam imported roughly 795,500 tonnes of raw cashew nuts worth US$1.06 billion during the first four months of the year, marking a rise of 4.8% in volume but a reduction of 7.1% in value year on year.

Vietnam Cashew Association (Vinacas) has sent an official dispatch to the Ministry of Industry and Trade to propose a tax on cashew kernels imported from Africa to protect domestic cashew processing.