Vietnam imports over 1 million tonnes of raw cashews from Cambodia duty-free to feed its processing industry

Vietnam remains the world's largest exporter of cashew kernels, but its strength lies in processing rather than in growing the crop. Domestic plantations cover only a small share of what the country's shelling and roasting plants require, forcing companies to buy large volumes of raw cashew nuts abroad, mainly from Cambodia and Africa, according to cafebiz.vn. The imported raw material is processed into kernels and cashew-based products and then shipped to the United States, China and Europe.

Preliminary figures from the Customs Department cited by cafebiz.vn show that Vietnam imported more than 186,000 tonnes of cashews in August, worth over $297 million, down 27% in volume and 26% in value. For the first eight months of the year, cumulative imports exceeded 2.1 million tonnes worth more than $3.5 billion — a 2% decline in volume but a gain of almost 6% in value against the same period a year earlier.

Cambodia dominates the supply mix

Cambodia is Vietnam's largest supplier, with more than 1 million tonnes worth over $1.76 billion, up 8% in volume and 25% in value compared with the same period of 2026. The average import price rose 15% to $1,743 per tonne.

Côte d'Ivoire ranks second with more than 360,000 tonnes worth over $601 million, a 10% fall in volume and a 3% decline in value. The average price was $1,671 per tonne, 9% higher than a year earlier. Tanzania is third with more than 165,000 tonnes worth over $276 million, up 23% in volume and 13% in value, at an average price of $1,671 per tonne, down 8%.

• Cambodia: more than 1 million tonnes, over $1.76 billion, $1,743 per tonne
• Côte d'Ivoire: more than 360,000 tonnes, over $601 million, $1,671 per tonne
• Tanzania: more than 165,000 tonnes, over $276 million, $1,671 per tonne

Cambodia's orchards, limited processing

Cashew is one of Cambodia's higher-value commercial crops alongside rice, rubber, cassava, palm oil, bananas, mangoes, longan and pepper. A report by the CAC cited by cafebiz.vn puts the country's cashew area at about 700,000 hectares, of which 580,000 hectares are in production and 120,000 hectares newly planted. Annual output ranges between 800,000 and 1,000,000 tonnes of raw nuts.

Processing capacity has not kept pace. Cambodia has 52 cashew processing facilities, of which six are medium-sized operations with capacity of between 7,000 and 140,000 tonnes a year. The remaining 46 are small, family-run businesses working on a seasonal basis. Limited financing, storage infrastructure and factory capacity push growers and traders toward exporting raw nuts to neighbouring countries, chiefly Vietnam — a pattern that, as cafebiz.vn notes, caps both company revenues and farmer incomes in Cambodia.

Zero duty and short haul

Cambodian raw cashews carry a 0% import tariff into Vietnam. Through 2026 Vietnam continues to apply trade mechanisms for a range of goods originating in Cambodia under a bilateral trade promotion agreement covering the 2025-2026 period. Geography reinforces the tariff advantage: the proximity of Cambodian growing areas shortens transport times and simplifies logistics for Vietnamese processors compared with sourcing from West and East Africa.

Vietnamese cashew kernels are now sold in more than 90 countries and territories, with export value growing steadily year after year. Global demand for cashews is forecast to keep expanding in the coming years, which cafebiz.vn describes as an opportunity for Vietnam to hold its position as the world's top exporter of the product.