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Cashew nut exporters need more support
30 | 07 | 2014
The Vietnam Cashew Association (Vinacas) has called for commercial banks to lower interest rates for local cashew nut exporters in a bid to stimulate lending to revamp the industry and increase competitiveness.

Vinacas Vice Chairman Dang Hoang Giang says that since 2006 Vietnam has held the largest global market share of cashews.

 

At present, however, the industry is operating at only 50% of capacity, he said, adding that it is also overly dependent on imports which increase costs, putting immense pressure on profits and cash flow.
 
“The industry additionally is suffering from ills such as low added value, small scale of production, and lack of cash due to difficulties in accessing bank loans,” Giang said.
 
In the first half of 2014, Vietnam’s exported 130,000 tonnes of cashews valued atUS$830 million.
 
The annual target for exports for 2014 is US$2-2.2 billion and by 2020 the country aims to export US$2.5 billion annually.
 
To achieve the export target of US$2.5 billion, it is essential for business in the industry to have ready access to cash provided by bank loans.
 
The industry needs to be revamped and cash is needed to overcome the obstacles and meet the growing demand for cashew production, purchase and processing, he said.
 
Currently, the US, China and the Netherlands are the three largest cashew importers of Vietnam. In total roughly 300 Vietnamese firms export cashew to 100 countries and territories around the globe
 


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