Hanoi (VNS/VNA) — The cashew industry shouldfocus on markets in which Vietnam had signed trade deals to take advantage ofpreferential tariffs and expand exports as inflation had pushed up theprices of raw materials and forced people to tighten spending, according to theVietnam Cashew Association.

Cashewexports saw two-digit drops in the first seven months.

Statisticsof the Import-Export Department under the Ministry of Industry and Trade showedthat cashew exports were estimated at 294,000 tonnes, worth 1.76 billionUSD in January-July, dropping by 10.5 % in volume and 12.1 % in value against thesame period last year.

Whilethe average export price increased by 1.45% against the same period last yearto 5,792 USD per tonne, the price of raw cashews rose by 15-20%.

Thedepartment predicted that cashew exports would continue to struggle in thethird quarter due to rising inflation in big economies and forces peopleto tighten spending.

Sharingthe same viewpoint, the Vietnam Cashew Association also said that cashewexports would continue to drop in the following months, even to the end of thisyear.

The association said that inflation is badly hitting the importmarkets of cashew nuts such as the US and the EU.

Inthis context, the association had to lower its annual export target from 3.8billion USD to 3.2 billion USD, around 400 million USD lower than the exportrevenue for 2021.

Thereis room to promote cashew export in the medium and long term, providing that Vietnamenhance the product quality and consolidate the brands.

Accordingto the Import-Export Department, global cashew exports are forecast togrow 4.6% per year in the 2022-27 period, along with the worldwide trend ofvegan and plant-based diets, favouring alternative protein sources.

Presidentof the Vietnam Cashew Association Pham Van Cong said that it is essential tofocus on improving the quality and raw materials and exported cashew productsto meet the requirements of the import markets.

The cashew industry has not fully taken advantage of the freetrade deals in which Vietnam is a member, to expand exports.

Accordingto the Vietnam Trade Office in France, the third largest cashew import marketin European Union, Vietnam’s cashew products lack competitiveness in thismarket as exporters do not attach attention to developing brands for Vietnamesecashews, pointing out that it is rare to find Vietnamese cashew brands on theshelves of supermarkets in France.

Besidesimproving product quality, the association said the focus should be placed ondeveloping cashew brands.

Dueto mounting inflation, Cong stressed that the cashew industry should strengthenexports to markets with free trade agreements with Vietnam to make the most ofpreferential import tariffs./.