Vietnam’s cashew industry has hit a historic milestone with export revenue surpassing US $5.2 billion in 2025, but the strong figures haven’t translated into solid economic efficiency for many exporters. According to the Vietnam Customs Department, the country shipped around 766,600 tones of processed cashews in 2025, marking a 20.4 % increase in value compared with the previous year — and setting new export records.
China became the top buyer for the first time, closely followed by the US and the Netherlands. Despite this growth, industry leaders say many firms — especially small and medium‑sized enterprises — are struggling to turn profits. A key reason is Vietnam’s heavy dependence on imported raw cashew nuts: domestic production meets only about 10 % of the country’s processing needs, forcing companies to import roughly 2.9 million tones, worth around US $4.5 billion.
This reliance exposes exporters to volatile prices and supply risks. Higher raw material costs, supplier‑imposed minimum prices and competitive buying habits have squeezed margins, leading some processors to record losses or exit the market entirely.
To address these challenges, the Vietnam Cashew Association (Vinacas) is pushing for stronger domestic raw nut cultivation, greater value‑added processing and more sustainable practices that balance export performance with profitability and long‑term growth.
