Cambodia's Raw Cashew Exports to Vietnam Reach $1.7 Billion, But Lack of Processing Limits Growth

August 04,2026: Cambodia's raw cashew exports to Vietnam have generated $1.7 billion in revenue so far in 2026, highlighting the country's strong agricultural performance while exposing the need for greater domestic processing capacity to capture higher-value profits. According to the Cambodian Cashew Nuts Association (CCNA), Cambodia exported around one million metric tonnes of raw cashew nuts to Vietnam during the first half of 2026, earning $1.7 billion. However, Vietnam Customs reported imports of 980,700 tonnes from Cambodia worth more than $1.7 billion as of mid-July, accounting for 54.2% of Vietnam's total cashew import volume and 56.3% of its import value. Cambodia continues to benefit from strong demand, with dry cashew prices rising to 8,200 riel per kilogram and wet cashews averaging 5,300 riel per kilogram, providing higher returns for farmers. CCNA President Uon Silot said this year's harvest has been strong, and better coordination between traders and farmers has helped ensure fair pricing. "The profits go directly to the farmers," he said, adding that the cashew sector has performed better than many other agricultural industries. Despite the positive export figures, Silot acknowledged that Cambodia remains heavily dependent on Vietnam, which imports raw cashew nuts, processes them, and exports value-added products to global markets. He noted that price fluctuations over the past three years have been influenced by foreign traders, although the association has implemented measures since 2024 to help stabilize prices. Experts argue that the absence of domestic processing facilities is preventing Cambodia from maximizing the economic potential of its cashew industry. Socio-economic analyst Chey Tech said exporting raw cashews instead of processed products results in significant losses in value addition and economic benefits. He pointed out that Vietnam earns substantial profits by processing Cambodian cashews and also utilizes processing by-products for industries such as renewable energy, biogas, and agricultural fertilizers. Tech called on the Cambodian government to encourage investment in local processing plants, improve access to affordable financing, and provide incentives for domestic and foreign investors. He also noted that Vietnamese processors benefit from low-cost financing of around 2% to 2.5%, giving them a competitive advantage over Cambodian businesses that rely on higher-interest commercial bank loans. Industry stakeholders believe that expanding domestic processing capacity and strengthening value-added production will help Cambodia reduce dependence on raw exports, increase export earnings, and create more sustainable economic opportunities for farmers and businesses.