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  • Support for this sector to grow more

    Jun 14th, 2016

    According to VN Cashew Association (Vinacas), during the period of economic integration VN deeper opens many opportunities as well as create a series of new challenges for both businesses and cashew farmers.

    So Vinacas proposed priority emergency state mechanisms and policies to support the sustainable development of the cashew sector in the near future ...


    Over 90% of businesses which currently are small and medium-competitiveness remains limited and vulnerable when the market is fully open. Therefore, this sector enterprises needed effective policies related to the field of taxation, brand building, promotion ...

    Tax policy

    Vinacas suggested early decrees and circulars guiding the Law on Export - import amended on the basis of the tax exemption on raw materials imported for production or processing of export goods. The fact that the current domestic production only meets 50% of demand processing (from 1.3 to 1.4 million tonnes), and despite the efforts of the whole agricultural sector, the production is difficult to rapid development in the next 10 years. Therefore, this sector will continue to import more than 50% of raw materials for processing in service.

    Currently, the value added tax (VAT) applicable to products deep processing of cashew nuts from 5-10% depending on the item. However, in fact the state can not collect this amount but the reimbursement procedure to take a long time, wasting money for both the State and enterprises.

    Therefore, the request for exemption from VAT for the individual products deep processing (things fried, roasted salted, roasted wood, which sawabi, spiced, laced honey, confectionery articles ...) to support businesses consume domestic and export products.

    This policy will encourage enterprises to invest more deep processing, more competitive, price for domestic and export markets is definitely better ... which can stimulate deep processing rate of 20% by 2030 aligned to the development of MARD.

    Branding and promotion

    Vinacas supported the proposal to build national brand that, for geographical indications sector. France's current project is to support the development of geographical indications that Binh Phuoc, upcoming construction proposed for geographical indications Dong Nai.

    Every year, this sector supports businesses through programs Vinacas organizations that international conference, trade promotion program focused on key markets and has participated in the negotiation of trade agreements with VN as American freedom , EU, ​​Middle East, ASEAN ...

    In addition, the proposal also help Vianacas DN industrial promotion programs, improvement of technology, equipment and processing conditions, diversification of products, deep processing, contributing to improving the quality and food safety and export value. Vinacas support programs "that VN sector towards cleaner production" and media program "The value that VN".


    According to Vinacas, cashew farmers is one of the two subjects most important role in the cashew value chain and also very vulnerable in the integration phase. Therefore, policies should pay more attention to the cashew growers. Specific:

    Recommend supported mortgage credit to farmers that need loans to intensive, renovated old cashew, low productivity, combined with the replacement of irredeemable area by reformulation cultivation, planting.

    Support for national agricultural extension programs, technical renovation grafted cashew, cashew production of clean, organic thing (Organic). To encourage the formation of "fields that produce large samples" with the cooperation of joint production and marketing of products between businesses and cashew farmers, with the support of the bank, the State management agencies and Associations.

    Forming what farm economy, the cooperative groups with large scale application of Good Agricultural Practices (GAP), high-tech applications in agriculture, post-harvest handling and marketing product…

    Remove obstacles for cashew farmers in the licensing and transfer of land use right certificates, because now in some local farmers have difficulty commercial bank loans to develop production conditions for no red book, red book, no collateral.

    In addition, support small farmers through economic organizations such as cooperatives and cooperatives, agricultural enterprises. Encouraging farmers to produce under contract and produced in series. Specialize in the production and consumption (contracts, vouchers ...); buy temporary storage.

    Establish "sustainable development fund which" aims to help stabilize production and promote links production and consumption of the company - based cashew farmers Decision No. 62/2013 / QD-TTg dated 25 / 10/2013 of the Government on development cooperation, linking production associated with the consumption of agricultural products, building big field.

    Nguyen Long

    Source: Agriculture Vietnam