At the event (Source: VNA) HCM City (VNA) – The Vietnamese cashewsector is calling for an 800 million USD credit package from commercial banksto better serve its exports, as heard at a seminar held in Ho Chi Minh City onJuly 6.
According to cashew nut exporters, banks arehesitant to disburse loans due to fluctuations in cashew nut prices. Severalbanks disagreed to offer additional loans after maturity, forcing firms to sellup cashew nut stocks in order to maintain a floating capital.
Secretary General of the Vietnam CashewAssociation (Vinacas) Dang Hoang Giang said in Long An, only 12 out of 33 cashewenterprises are functioning, while 80 percent of processing facilities haveeither been shut down or forced to suspend their operations in Binh Phuoc.
Not only in Vietnam, but firms in India - oneof the world’s largest cashew producers and processors – are facing similarissues. In Kollam city in Kerala state – the cashew-nut capital of India –firms had to import cashew materials at high prices but sell at low prices,forcing 70 percent of enterprises to shut down and file bailout applications.
The Indian government held a meeting to discussmeasures and asked its central bank to either extend loans or lower its interestrates.
Vinacas Chairman Nguyen Duc Thanh said cashewfirms have renegotiated purchasing prices of cashew materials which have beencut by 150-300 USD per tonne.
Last year, Vietnam’s cashew exports surpassed3.6 billion USD, placing it the first among farm produce for exports.
The International Nut Council forecast that theworld’s cashew nut prices are rising by 6 percent per year on average.Meanwhile, the global cashew demand is rising, especially in the last half year.As inventories run out, cashew enterprises need to tap opportunities to importmaterials for processing and export.
Vinacas estimated that nearly 500,000 tonnes ofcashew materials are on the way to Vietnam from exporting countries or are stuckin bonded warehouses. It pledged to provide a list of prestigious cashew exportand import enterprises for banks to facilitate their capital access.
In the first half of this year, Vietnam earnednearly 1.9 billion USD from cashew nut exports, up 25.2 percent year on year.Meanwhile, imports plunged 40.7 percent to over 750 million USD. The US remainedthe largest importer of Vietnamese cashew nuts, accounting for a 35 percent marketshare, followed by China at 10 percent.-VNA
According to cashew nut exporters, banks arehesitant to disburse loans due to fluctuations in cashew nut prices. Severalbanks disagreed to offer additional loans after maturity, forcing firms to sellup cashew nut stocks in order to maintain a floating capital.
Secretary General of the Vietnam CashewAssociation (Vinacas) Dang Hoang Giang said in Long An, only 12 out of 33 cashewenterprises are functioning, while 80 percent of processing facilities haveeither been shut down or forced to suspend their operations in Binh Phuoc.
Not only in Vietnam, but firms in India - oneof the world’s largest cashew producers and processors – are facing similarissues. In Kollam city in Kerala state – the cashew-nut capital of India –firms had to import cashew materials at high prices but sell at low prices,forcing 70 percent of enterprises to shut down and file bailout applications.
The Indian government held a meeting to discussmeasures and asked its central bank to either extend loans or lower its interestrates.
Vinacas Chairman Nguyen Duc Thanh said cashewfirms have renegotiated purchasing prices of cashew materials which have beencut by 150-300 USD per tonne.
Last year, Vietnam’s cashew exports surpassed3.6 billion USD, placing it the first among farm produce for exports.
The International Nut Council forecast that theworld’s cashew nut prices are rising by 6 percent per year on average.Meanwhile, the global cashew demand is rising, especially in the last half year.As inventories run out, cashew enterprises need to tap opportunities to importmaterials for processing and export.
Vinacas estimated that nearly 500,000 tonnes ofcashew materials are on the way to Vietnam from exporting countries or are stuckin bonded warehouses. It pledged to provide a list of prestigious cashew exportand import enterprises for banks to facilitate their capital access.
In the first half of this year, Vietnam earnednearly 1.9 billion USD from cashew nut exports, up 25.2 percent year on year.Meanwhile, imports plunged 40.7 percent to over 750 million USD. The US remainedthe largest importer of Vietnamese cashew nuts, accounting for a 35 percent marketshare, followed by China at 10 percent.-VNA
VNA
