The cashew industry in Vietnam is growing steadily as it enters the second half of 2025. In the absence of the prominent price increases observed in rice or coffee, cashew exports have subtly increased to all-time highs. In the first half of the year, 346,800 tonnes of shipments brought in $2.36 billion for the nation. The export value demonstrated a significant increase, despite a slight decline in volume.

This increase coincides with rising cashew prices worldwide, which have increased average export prices to more than $6,800 per tonne. That represents a nearly 24% increase over the same time period in 2024. Despite a tightening supply, this means higher profits per shipment for exporters and processors.

 

Demand-Driven Key Markets 

The United States, China, and the Netherlands continue to be Vietnam's top buyers. Over half of the total export value comes from these markets combined. Significantly, the value of shipments to China increased by more than 40%, indicating strong demand. Additionally, the EU is expanding steadily, and Vietnamese suppliers are being urged to investigate new prospects in Saudi Arabia and the United Arab Emirates, where market share is still quite low.

Vietnam spent almost USD 2.1 billion importing over 1.32 million tons of raw cashews between January and May 2025. Compared to the same time last year, that represents a 9.1% increase in volume and a nearly 40% increase in value. Given the continued global scarcity of raw materials, the stark disparity underscores the growing price competition across sourcing markets.

 

Cost Benefits Before the Busiest Time of Year

As the year-end export season approaches, Vietnam's processors are benefitting from lower raw cashew prices, which are currently around $1,350 per tonne. With demand predicted to increase around international holidays and the Lunar New Year, the timing couldn't be more ideal. Vietnamese suppliers can now compete more fiercely, particularly in price-sensitive markets, thanks to the increased margin.

 

The outlook for global growth is still favorable.

The Vietnam Cashew Association projects that through 2027, the global cashew market will expand at a steady rate of about 4.6% per year. Increased snack consumption, food processing, and the confectionery industry are the main drivers of growth. Vietnam further solidified its position as the world's top cashew exporter in 2024 by exporting a record 730,000 tonnes of cashews, generating $4.37 billion.

 

Growing Trade Deficit

Vietnam is experiencing a rare cashew trade deficit despite robust exports—USD 1.88 billion in the first five months, up 19.4% year over year. The cost of imports is increasing more quickly than export earnings. Maintaining competitiveness while controlling margin pressures brought on by high input costs is currently a challenge.

To help reach the nation's USD 4.5 billion export goal for 2025, Vietnam's Ministry of Agriculture has placed a strong emphasis on increasing product quality, diversifying the market, and fostering trade more vigorously.

 

 

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