Vietnam cashew sector is a model for other agricultural products

January 12, 2017

Vietnam's industries have better competitiveness on world markets is why we have mastered processing technology. The orchard owners in Binh Phuoc surely this year to celebrate the New Year. Price it at this time of up to 54 thousand VND / up, up about 35% over the beginning of 2016. "The price of dried cashew nuts increased strongly and is now reaching the peak, by domestic supply khan rare, the price of crude imports at a high level while export demand increases ", the Ministry of Agriculture and rural Development sector overview picture it in 2016.

Details on exports is also quite interesting, as reported by the Ministry of Agriculture and Rural Development, last year Vietnam Cashew export sales volume amounted to 347 thousand tons and revenues of 2.84 billion, up 5 , 6% in volume and 18.4% in value compared to 2015. Taking into account the average price of the first 11 months of 2016, exports of cashew nuts reached more than $ 8.1 / kg, an increase of 11.3% compared the same period of 2015.

Exports less than 350 thousand tons, Vietnam imports of raw materials up to 1 million tons. Notably, the import value of only $ 1.6 billion, or the equivalent of about $ 1.6 / kg. Whether even a loss in the process of processing, as well as to remove byproducts ... the relationship between import prices and export prices as above still shows the value added in the country is quite good.

Debuted at number one on the production and export of cashew, the year 2016 is probably quite a mutation of branch of Vietnam, when the price is very stable and sold pretty well. But behind it was a long story of success in improving competitiveness and increase value for Vietnamese agricultural products.

According to the analysis of the Vietnam Cashew Association (Vinacas), makes an important reason for Vietnam's industries have better competitiveness on the world market is because we have mastered the technology and processing. This is probably the only sector Vietnam can even export the technology. This success was only achieved reality in less than a dozen years ago. Earlier, most of the processing equipment and technology that domestic companies are all imported from Italy, China, India ...

The link between the processing enterprises with DN mechanical thing has gradually built up a "brand" of the processing technology of Vietnam thing. Many facilities in this sector, in almost all stages of processing from sorting, steaming, drying dissection until, peeled silk ... are considered equally good, or better than imported equipment. Now, thanks to technological innovations that labor costs in this sector reduced and productivity increased.

Create local value added large, master technology and high competitiveness, this sector is a model for other agricultural products, although there are still some issues to be resolved. Such as rice, coffee, rubber ... are maintaining crude production in the state, which is pulled by reducing price competition. Outcomes showing disadvantage DN leaning toward Vietnam. Even some easy market before, now has turned into controlled agricultural products imported from Vietnam, due to concerns about poor quality goods mixing, does not guarantee food safety conditions ...

More generally the entire economy, as recognized by the Ministry of Planning and Investment, the current existence is still low labor productivity and weak competitiveness. The question is why other industries can not be like the cashew sector innovation? What mechanism has held the Vietnam to be able to build a brand for agricultural products, where a lot of merchandise exports stood at the top groups in the world? ...

Source: Times Bank