Number one in the world, yet importing 80% of its raw material

Nov 10, 2026, Viewpoint

Number one in the world, yet importing 80% of its raw material.

Vietnam produces more than 80% of the world's exported cashew kernels, yet around 80% of raw cashew nuts have to be imported. For nearly twenty years, Vietnam has held the world's number one position in cashew processing and kernel exports, a position built on other people's raw material.

In the first ten months of the year, cashews brought in USD 4.38 billion, up 2.2% year on year, while export volume eased slightly and the average selling price rose 4.3%. By October, Vietnam had exported more than 600,000 tons of cashew kernels, earning more than USD 4.2 billion, with China buying 21.6% and the United States 15.2%. For the full year, the cashew industry is targeting USD 5.5 billion, above the record USD 5.4 billion of 2025.

But at the international cashew conference at the end of October, the industry itself admitted that profits are not meeting expectations, as tariffs, trade barriers and transport costs squeeze margins together.

Processing well is only half the story; the other half is raw material. When around 80% of inputs must be imported, the profit margin is not in our own hands. Leading in volume does not mean leading in value. What decides the outcome is the value kept, not the volume sold.

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