Cambodian Cashew Exports to Vietnam Drop 15.8%, While Agriculture Faces Impact of Fake News and Complicated Regulations
In the first eight months of 2023, Cambodia witnessed a decline in its raw cashew nut (RCN) exports to Vietnam. According to Uon Silot, President of the Cashew Nut Association of Cambodia (CAC), the country exported 607,000 tonnes of RCN to Vietnam during this period, generating $820 million in revenue. This marked a significant decrease of 15.8% compared to the same period in the previous year.
The data provided by Silot highlights that Cambodia produced approximately 634,000 tonnes of RCN between January and August. Remarkably, nearly 95% of this production was exported to Vietnam. The average price of RCN stood at $1,658 per tonne. However, in August 2023, the price rose to $1,900 per tonne, reflecting a nearly 15% increase compared to previous prices.
Despite the positive aspects such as the price surge, Cambodia’s agriculture industry continues to grapple with challenges arising from fake news and complicated regulations. Silot emphasized that the spread of misinformation concerning Cambodia, including topics such as drugs, scams, theft, and kidnapping cases, has affected the country’s reputation. Although the government is actively taking measures, the agriculture sector remains at a disadvantage, with international investors showing reluctance to invest as a result. Consequently, the productivity of the cashew industry is also affected.
Silot further noted that enterprises interested in establishing cashew processing plants face a series of complex procedures. These include obtaining permission from the Ministry of Industry, Science, Technology and Innovation (MISTI), registering with the Ministry of Land Management, Urban Planning and Construction (MLMUPC) for construction purposes, receiving certification from the Ministry of Environment (MoE) to ensure locals are not negatively impacted, and requesting an official brand name from the Ministry of Commerce (MoC).
To address these issues, Silot suggested streamlining the procedures through a one-stop solution approach. This would reduce the time-consuming process and improve the overall business climate. Additionally, Silot called upon the media and international partners to assist in promoting Cambodia’s agricultural products and facilitate their import into various countries.
Furthermore, Silot urged the government to enhance the supply of raw materials and minimize the logistics and shipping costs associated with the cashew industry.
Cambodia’s cashew sector plays a crucial role in the country’s economy, and efforts must be made to overcome the challenges it currently faces. By addressing the impact of fake news and streamlining regulations, Cambodia can strengthen its agricultural industry, attract international investments, and boost cashew productivity.
