Sustainable development of Vietnam’s cashew capital

Dong Nai is currently the locality with the largest cashew cultivation area in Vietnam, and also attracts a large number of enterprises involved in the production, processing, and export of cashew nuts. The export value of Dong Nai’s cashew industry accounts for approximately 50 percent of the national total, and processed cashew products from the province are now present in more than 80 countries and territories.

Comrade Phan Dinh Trac, Politburo member and Chairman of the Party Central Committee’s Commission for Internal Affairs, together with Comrade Ton Ngoc Hanh, Alternate member of the Party Central Committee, Standing Deputy Secretary of the Provincial Party Committee, and Chairwoman of the Dong Nai Provincial People’s Council, visit the product display booth of Vinahe Co., Ltd. Photo courtesy of the company

To achieve more sustainable development, the cashew industry needs to enhance product value and quality through deeper processing, reduce dependence on foreign raw material sources, and build product brands for individual enterprises.

The country’s largest cashew raw material and processing center

Cashew processing is one of Vietnam’s key agricultural sectors, with export value increasing year by year. In 2025, total cashew export turnover exceeded USD 5.2 billion, the highest level to date. Previously, in 2024, Vietnam’s cashew exports surpassed the USD 4 billion mark for the first time, reaching more than USD 4.3 billion. Thus, in just one year, the value of cashew exports increased by nearly USD 1 billion. Cashew nuts have risen to rank third among Vietnam’s major agricultural export commodities, after coffee at USD 8.9 billion and fruits and vegetables at USD 8.56 billion.

In the overall picture of Vietnam’s cashew industry, Dong Nai, particularly the area formerly part of Binh Phuoc province, has long been a "stronghold" for both raw material supply and cashew production and processing. The province has more than 170,000 hectares of cashew cultivation. According to the Dong Nai Statistics Office, the province’s total merchandise exports in 2025 exceeded 34.6 billion USD, with cashew exports alone reaching nearly 2.8 billion USD, ranking third among its major export sectors. With these figures, Dong Nai accounted for more than 50 percent of Vietnam’s total cashew exports in the past year.

These achievements not only reflect a significant increase in export scale but also demonstrate essential shifts in market orientation, processing technology, and the industry's overall sustainable development direction. To ensure that cashew truly becomes a spearhead commodity, Dong Nai is implementing a range of strategic solutions. The province is focusing on planning and replanting cashew orchards with high-quality varieties, while encouraging enterprises to invest in processing technology to increase the value of cashew products.

Nguyen Hoang Dat, Director of Vinahe Co., Ltd. (Phuoc Binh ward, Dong Nai province), shared that the company’s cashew products have been performing well in the market thanks to trade promotion efforts and brand development and promotion, helping the enterprise affirm its position in both domestic and international markets. In the coming period, the company urgently needs preferential loans at appropriate interest rates to invest in machinery, expand production and business operations, scale up, and accelerate its digital transformation.

A current difficulty is that domestic raw materials meet only about 10% of processing demand, with the remaining 90% dependent on imported raw materials from Cambodia and African countries. At the same time, countries with their own raw material areas are increasingly investing in production, which is expected to lead to fiercer competition in the near future.

Increasing value from cashew products

Cashew production and processing is one of the province’s key industries; however, the sector is currently facing many difficulties. Most cashew production and processing facilities in the province operate on a small and fragmented scale, mainly relying on manual production and contract processing. Many cashew-processing enterprises pay little attention to packaging, labeling, and registration of food safety and hygiene standards, especially those producing for the domestic market.

According to Le Thi Thanh Thao, Director of Phuc Thinh Production – Trading – Services One Member Limited Liability Company (Phuoc Son commune, Dong Nai province), if high-quality Vietnamese products cannot win over Vietnamese consumers, it will be incredibly challenging to build a sustainable brand in the global market. Therefore, while many cashew enterprises focus on exporting semi-processed products or raw materials, Phuc Thinh has proactively developed both export and domestic consumer markets in parallel. The enterprise has invested in modern machinery and implemented a closed-loop production process to ensure consistency, stability, and traceability – requirements that are becoming increasingly stringent in high-end markets such as the United States, Europe, and Japan.

Investment in modern production facilities also aims to increase the value of cashew products and move away from contract manufacturing. In September 2025, the Ba Tu Binh Phuoc Agricultural and Food Processing Plant of Gia Bao Corporation Joint Stock Company (Binh Phuoc ward, Dong Nai province) was inaugurated. The company invested 6.5 million USD in building a modern factory, laying the groundwork to support cashew farmers nationwide and to help maintain Vietnam’s national cashew brand's position in the international market.

Tran Van Son, Chairman of the Board of Directors of Gia Bao Corporation Joint Stock Company, said that the plant has a designed capacity of 4,000 tons per year. The factory will help create jobs for local workers while also improving processing quality and increasing the value of cashew nuts and other agricultural products.

To enhance product value and ensure the sustainable development of the cashew industry, Nguyen Hoang Dat, Vice Chairman of the Dong Nai Cashew Association, said that enterprises need to pay greater attention to building their own brands. More broadly, closer coordination among farmers, the State, scientists, and enterprises is required to standardize production processes, improve cashew quality, and jointly build a supply chain for Vietnam’s cashew industry.

By Vuong The – Translated by Thu Hien, Minho