At a recent seminar in Binh Duong Province, participants discussed the impact of Decree No. 15 on the cashew industry. While the decree aims to ensure imported food safety, it has created numerous challenges for the cashew industry, particularly for businesses importing raw materials from Africa.
At the seminar “Identifying Challenges and Seeking Solutions for Cashew Industry Trade Facilitation” organized by the Vietnam Cashew Association (VINACAS), industry stakeholders and experts called for government revision of the decree.
According to VINACAS, Vietnam has been the world’s largest processed cashew exporter for the past 20 years, accounting for 80% of global exports. However, the industry still faces significant challenges.
Bach Khanh Nhat, Standing Vice Chairman of VINACAS, stated that Article 14 of Decree No. 15, issued in 2018, requires plant-based food imports to come from countries or regions with food safety control systems meeting Vietnamese standards and approved for export to Vietnam.
However, African countries, which provide 70% of Vietnam’s raw cashews, are not on the list. This means all cashews imported from Africa can only be used for export and cannot be sold in the domestic market under any circumstances.
This regulation prevents companies importing large quantities of raw cashews from selling their inventory to local businesses even when facing difficulties. These inventories also cannot be used as collateral for bank loans.
Participating businesses stated that while food safety requirements are reasonable, the regulation has become a “shackle” on production and business activities, making it difficult for companies to adjust operations according to market fluctuations. Many businesses face bankruptcy risks due to their inability to sell large inventories, with some forced to conduct illegal domestic sales to maintain operations.
Legal expert Le Trong Them suggested that the Ministry of Agriculture and Rural Development should include African countries in the list of nations and regions approved to export plant-based foods to Vietnam, as African countries may need considerable time to complete relevant procedures.
Dau Anh Tuan, Head of the Legal Department at the Vietnam Chamber of Commerce and Industry, emphasized the need for selective application of the decree to certain key export industries.
Bach Khanh Nhat stated that VINACAS will petition the Ministry of Agriculture and Rural Development and relevant departments to adjust the decree promptly to alleviate business difficulties.
Key News Points:
- Vietnam is the world’s largest cashew exporter, accounting for 80% of global exports.
- Decree No. 15 restricts domestic circulation of African-imported cashews.
- Businesses face operational difficulties due to inventory restrictions.
- Industry calls for decree modification to ease restrictions on African cashew imports.
- Relevant departments are considering appropriate regulatory adjustments to support industry development.
