Technology creates a turning point
2025 concludes with a significant milestone for Vietnamese cashew industry as export turnover is estimated to approach $5 billion, far exceeding initial target of $4.5 billion, while opening up new expectations for 2026 with goal of increasing product value, reducing dependence on raw materials and aiming for sustainable development. This is not only achievement of businesses but also the result of a combination of policy management, improved production processes, technology investment, and market adaptation in the context of global trade fluctuations.
Mr. Dang Hoang Giang, Secretary General of Vietnam Cashew Association (VINACAS), assessed that cashew export growth results in 2025 clearly demonstrate the industry's transformation efforts from an agricultural sector linked to poverty reduction to a multi-trillion-dollar industry present in more than 90 countries and territories. "Exports exceeding targets, maintaining good order volumes and improving added value are foundation for cashew industry to enter 2026 with a more proactive mindset", said Mr. Dang Hoang Giang.
Looking back at development process, technology has been decisive factor in putting Vietnam's cashew industry on the world processing map. Before 2010, cashew processing industry relied heavily on manual labor, resulting in low productivity and high costs. When VINACAS implemented a project to manufacture automatic shelling and peeling machines from 2008 and put them into operation in 2010, entire industry entered a new phase: productivity increased sharply, losses decreased, product quality became more stable, and it met international food safety standards.
Thanks to mechanization, Vietnamese cashews have become a globally competitive product, especially in demanding markets such as the US, EU and Japan. However, core issue now lies not in processing, but in supply of raw materials. Vietnam needs more than 2 million tonnes of raw cashews for processing each year, but domestic sources only meet about 10%. The rest must be imported, mainly from Africa (accounting for about 70%). This dependence puts cashew industry at significant risk when the policies of exporting countries change. In 2024, Ivory Coast, the world's largest supplier of raw cashews, unexpectedly halted early-season exports to prioritize domestic market. Immediately, Vietnamese businesses faced difficulties in procurement, increased costs and many contracts had to be adjusted.
In the last five years, many African countries have shifted from exporting raw cashews to investing in deep processing to increase product value. With 70% of processing steps mechanized, these countries quickly grasped and produced most of stages themselves. However, the remaining 30% of manual processes requiring high skills are still outsourced to Vietnam.
In fact, Vietnam is gradually becoming a finishing center for cashew products for Africa before export. As a result, they don't need to expand their factories, but the volume of processed cashew kernels is increasing rapidly. According to the Customs Department, the amount of cashew kernels imported from Africa into Vietnam has increased from a few tens of thousands of tons in 2020 to 150,000 tons in just 11 months of 2025, equivalent to 700,000 tons of raw cashews, far exceeding Vietnam's domestic production (approximately 400,000 tons). If this trend continues, Africa could completely complete the entire production and export chain, causing the Vietnamese cashew industry to lose its competitive advantage, affecting agricultural and economic growth.
2026 - The goal is not just to increase volume
Entering 2026, market picture is considered brighter. The US, the largest market for Vietnamese cashews, has exempted reciprocal duties on processed cashew kernels, helping businesses expect a strong recovery in revenue from this market.
Mr. Phung Van Sam, Chairman of Board of Directors of Hanfimex Group Joint Stock Company, stated that the current advantage is that selling price of Vietnamese cashews is 5% lower than that of almonds, walnuts, and pistachios, while global consumer incomes are trending downwards. This opens up opportunities to expand consumption demand. However, Mr. Sam also frankly stated that prices may decrease in 2026 due to abundant global supply, forcing businesses to improve product quality and standards and diversify into deeply processed products.
Nevertheless, raw materials continue to be a challenge. Africa, which supplies more than 70% of Vietnam's imported raw cashews, is tightening export controls to maintain domestic value. “If they complete entire production chain, Vietnam will no longer have an advantage; it may even lose its role as a global processing center,” warned Mr. Bach Khanh Nhut, Permanent Vice Chairman of VINACAS.
Against this backdrop, VINACAS has submitted a series of recommendations to the Government and relevant ministries, departments and localities, suggesting that they consider imposing import taxes on cashew kernels instead of completely exempting them, in order to reduce reliance on processing; establishing a minimum import price, similar to the model applied in India, to protect domestic production; and increasing technical barriers and quality standards, only allowing import of raw materials that meet required standards. These proposals aim at ultimate goal of preserving high-quality raw materials for domestic businesses and limiting the risk of Vietnam becoming a "cashew kernel processing factory" for the world.
Issue of developing raw material areas is also a top priority. Currently, area of cashew cultivation in the country has shrunk due to competition with other crops. VINACAS proposes that Ministry of Agriculture and Environment develop a program to restore and expand cashew cultivation areas, especially in the Central Highlands and Southeast regions; and simultaneously research high-yield cashew varieties to replace aging orchards. According to Mr. Nhut, cashew replanting should be implemented similarly to the coffee replanting program, with financial support, technical assistance and incentive mechanisms.
With policy consensus, combined efforts of businesses and application of technology throughout the chain, Vietnamese cashew industry can go further than it is now, not only leading the world in processing output but also achieving breakthroughs in value, building a national brand instead of selling raw materials or doing contract manufacturing.

Source: Vitic/ congthuong.vn