Domestic supply of raw cashew nut meets only half of processing capacity, said Nguyen Duc Thanh, President of the Vietnam Cashew Association (VINACAS). The shortages are forecast to remain for the next ten years, Thanh said, adding that the sector will have to import raw cashew nuts, mostly from Africa and Cambodia, to meet processing demand.
In 2016, domestic enterprises are forecast to import 870 tonnes of raw cashew nuts, worth over US$1.1 million, according to VINACAS.
However, VINACAS also points to the fierce competition among enterprises from China, India, and the Ivory Coast amid rising cashew nut prices.
Director General of the Long Son JSC Vu Thai Son said VINACAS needs to better connect domestic business to ensure sustainable development. Floor selling and ceiling buying prices of raw nut should be established to help create fair competition among domestic enterprises, Son said. Participants also urged strengthening connections between processors and farmers. They also called for simplified administrative procedures.