THE HISTORY OF VIET NAM CASHEW INDUSTRY
1. Stage 1: before 1991 and until Vinacas established.
Just collecting raw nut from India including some exporter: Vinalimex, Minhhuy…
People who could solve the problem of exported cashew process was rich. Only large State Companies who had enough capital could do this.
2. Stage 2: from 1991 to 2008
Establishment of the handmade cashew nut processing plants.
People gathered workers to 1 place to process cashew nuts, and way to sale was signing forward contracts. At the peak point, when G20 group was established to control prices, and in 2008, foreign buyers came to VIETNAM to claim goods, because all plants cancelled signed contracts to get benefit when prices shot up, we recorded that price of WW320 was from 1.95 usd/lb to 3.3 usd/lb, and VN refused to ship about 500 containers, delayed shipping goods from 3 to 6 months, brokers met difficulties in negotiating with buyers to sign addendums with support prices to get goods.
At that time, people who could solve the problem of gathering workers to 1 place was rich, and private plants appeared beside State companies.
3. Stage 3: from 2009 to 2012
Approach technological machines to processing, very small packers appeared that made Binh Phuoc become the largest cashew nut processing factory in the world. At end of this period, range of large plants bankrupted when the price of cashew nuts dropped dramatically with the amount of raw nut inventory was extremely large.
People who could solve the problem of innovation, equipment and machine technology was the rich
4 . Stage 4: from 2013 to 2015
Imports of raw materials, with “Binh Phuoc workshop", Vietnamese raw nut was not much enough for production. Besides, the factory upgrades, FSH,... technology and machinery were sold to Africa.
Anyone who could solve the problem of importing raw materials in the VN was the rich.
5. Stage 5: what is this??? Deep processing???Movements of buyers to Viet Nam? Or movements of Vietnamese companies to Africa (hard to happen because Vietnamese were afraid of risks)?
- Periods of Viet Nam’s cashew industry became shorter and shorter. It took 17 years for the 2nd period, and only 3 years for the 4th period.
- Each period was proportion with a principle of processing. No change in processing principle to be in accordance with each new stage. That explained why people were not rich anymore, or had to bankrupt.