HCMC – The local cashew industry will need around VND11 trillion to sustain development within the next ten years.
The sum will help the sector expand growing areas, modernize production and invest in research, according to the 2011-2020 cashew development plan devised by the Vietnam Cashew Association (Vinacas).
The fund will be mobilized from banks, corporate bond sales, share issues and the State budget.
Vinacas plans to pass the project to relevant ministries and submit it to the Government in the fourth quarter of this year for approval. The industry will spend VND4.5 trillion in the 2011-2015 period and VND6.5 trillion until 2020.
The industry is facing difficulties due to unstable material sources as farming families have switched to growing rubber or cassava for higher profits. Besides, cashew export in the coming years will be affected by a labor shortage and higher input costs.
According to Vinacas, the capital will help to ensure a stable cashew material cultivation area of 315,000 to 360,000 hectares in the country, 200,000 to 250,000 hectares in Cambodia and 50,000 to 100,000 hectares in Laos. Through this financing, enterprises can also train workers, improve processing technology and promote business at home and abroad.
Vietnam is the world’s leading cashew exporter but 30% of unshelled cashews are imported from Africa. As African nations plan to process cashews in the future as well, the local processing industry will certainly suffer a material shortage.
