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  • Paradoxically branch of Vietnam

    Dec 28th, 2016

    Vietnam is the country of export (export) the greatest thing in the world, within 10 years, it has always been industry turnover billion. However, the serious imbalance in supply and demand - materials, links and weak competitiveness that this sectorAccording to data from the General Administration of Customs, May 10, 2016 overall, cashew export volume of Vietnam reached 291,000 tons worth USD 2.33 billion. Forecast 2016 production for export that can reach over 320,000 tons, earning nearly $ 3 billion. 2015, Vietnam exported 328,819 tons of cashew, earning $ 2.4 billion.

    "He grew" global exports

    Report of the Vietnam Cashew Association (Vinacas) shows that Vietnam currently occupies 50% market share of global conditions. The country has about 1,000 processing facilities which, 371 units exported cashew processing capacity of 1.2 million tons, accounting for about 40% of the processing capacity of the world thing. Article Vietnam also has good conditions for the development of material resources. Currently, there are 6 major regulatory regions, more than 300 households with over 310,000 hectares under cultivation natural thing.The same thing in Vietnam have a high yield, besides the same thing a long tradition, the new varieties are being deployed on a large scale, the most common is the same thing PN1, ... (*)

    One of the highlights of the industry in Vietnam, are largely machines, continuous processing equipment, automation is manufactured by Vietnam. Typically, these types of cutter, split, peeled, particle size distribution, packaging ... to meet the needs of more than 1,000 enterprises producing, processing in water, machinery, equipment and processing conditions of Vietnam. Nguyen Duc Thanh - Chairman of Vinacas, said: "The products that Vietnam's exports of good quality, good design, meets the high requirements of many demanding markets, like the US, EU, Germany, Japan. It's primary Vietnam has exported far away 80 markets, the US is the highest with 30%, 25% of European countries, China is 18%. "

    With the advantage of yield and quality, which Vietnam is a very open market. The USA is the biggest market of that Vietnam currently occupies 32% of the production for export. America will continue to be the biggest market of the industry, by demand of the Americans that the growing (growth 53% in 6 years). According to Mr. Joseph Lang - company CEO Kenkko House, said: "The need for what the world has and will increase in the years to come, when the nutritional value of the grain that has been recognized. Demand in the EU it will also increase the market and export potential of Vietnam thing ".

    Big but not strong

    Accounting for half the global market conditions, branch of Vietnam still exist many paradoxes. According to data from the Ministry of Agriculture and Rural Development, in the May 10, 2016, that domestic enterprises have imported (NK) 913,000 tons of crude, worth $ 1.4 billion, up 17% in volume, 39% in value over the same period the year 2015. it is expected that the import volume could reach 1 million tons, equivalent to 65% of domestic processing conditions. It is clear that when the national paradox that the world's biggest export but lacks depth material. The reason is that Vietnam has no major cashew production chain under the farm, planted mainly distributed in the population. The expansion of the area, making the output of raw materials in the country is the imperative of the industry. The severe shortage of materials that Vietnam makes enterprises to boost NK lead to being "squeezed".

    Nguyen Duc Thanh - Chairman of Vinacas, said: "It is Vietnam's leading export, but not strong, even if the supply of raw materials is also very difficult because of the ability to link export enterprises is not high." The weak link businesses led to weak competition. "Vietnam has three firsts: export, import and manufacturing. But because of a lack of solidarity, made up everyone that both industry that goes on the international stage. If not promptly remedy material weaknesses and coherence, Vietnam cashew industry will lose competitiveness in the future, "said Vu Thai Son - Long Son company representative, said.

    Besides, the branch of Vietnam still untapped domestic market. Is a potential market of nearly 90 million people, but the domestic consumption of cashew nuts make up less than 5% of it has been processed. The reason is because of the low domestic purchasing power, because the price is too high (about 220000-250000 VND / kg). Businesses focus and spend quality for export, while the air quality for the domestic market.

    To fix, Vinacas representative said that Vietnam's cashew sector should aim to 500,000 tons of raw materials, actively expanding the growing areas of focus in the direction of the farm. Strengthening the intensive processing to enhance the value of products, advanced technology, ensuring food safety. Businesses also need to diversify the product, incorporates a variety of beads in a variety of products to meet the needs of multiple audiences, reach closer to domestic consumers. "These companies need stronger links, active in quality control tightened when importing raw materials. Combined into groups to import large quantities of raw materials to reduce costs, avoid extorted. Do not do business with partners providing substandard materials and lack credibility ".


    Source: TBKD