You want to source Vietnamese nuts, but you are not quite sure what the production situation actually is—many people have this concern. In recent years, Vietnam has rapidly raised its profile as a producer and exporter of nuts.
This article explains in detail the emerging cultivation of macadamia nuts, trends in peanut production, and the latest trends in processing and export.
An overview of Vietnam's nut industry
Vietnam has made use of its tropical and subtropical climate to produce a wide range of agricultural products. Cashew nuts it has long boasted world-class export performance. In recent years, macadamia nuts have been added, diversifying the nut industry as a whole.
The country has about 22 million people engaged in agriculture. Agriculture is a key industry, accounting for about 14% of GDP. The government actively invests in improving the quality of export-bound agricultural products, and nuts are one of its priority items.
Growing regions of major nuts
| Nut type | Main origins | Characteristics |
|---|---|---|
| Cashew nuts | Binh Phuoc, Dong Nai, Ba Ria-Vung Tau | One of the world's largest export volumes |
| Peanuts | Northern region, Central Highlands (Tay Nguyen) | Both domestic consumption and export |
| Macadamia nut | Dak Lak, Lam Dong, Son La | Rapid growth since the 2010s |
Macadamia nuts: a rapidly growing emerging crop
Macadamia nuts are originally native to Australia, but cultivation in Vietnam is expanding rapidly. In the early 2010s it was no more than experimental, but the area under cultivation has since grown to exceed about 20,000 hectares.
Why macadamia grows in Vietnam
Dak Lak and Lam Dong provinces are highland areas at elevations of 600 to 1,500 meters. With an average annual temperature of 18 to 23°C, they offer an environment well suited to growing macadamia. The soil, too, is fertile basaltic red earth, which suits the growth of fruit and nut trees.
A growing number of coffee farmers are also intercropping macadamia. Because it spreads the risk of coffee price volatility, it has become an attractive option for farmers.
Output and challenges
As of 2023, Vietnam's macadamia output reached about 15,000 tonnes per year (in-shell). There are challenges, however.
- Seedling quality is inconsistent
- Standardization of cultivation techniques is still underway
- The development of processing facilities has not kept pace
The government and private companies are working together to spread certified seedlings and provide technical guidance. A plan to further double output over the next five years is in motion.
Peanut production: steady domestic demand and export
Peanuts are a major crop that has long been grown in Vietnam. Annual output has held at about 500,000 tonnes, serving both domestic consumption and export.
Main growing regions and varieties
Nghe An and Thanh Hoa provinces in north-central Vietnam are the main growing regions. Planting is concentrated in the dry season, and one to two harvests a year is typical.
The varieties used are mainly divided into the following two lines.
| Variety line | Characteristics | Use |
|---|---|---|
| Native varieties (such as L14) | Strong aroma, smaller kernels | For oil pressing and seasonings |
| Improved varieties (such as MD7) | Large kernels and high yield | For food use and export |
Trends in peanut exports
Vietnam's peanut export destinations are wide-ranging. China is the largest, accounting for about 40% of the total. Exports to Indonesia and the Philippines are also solid, and inquiries from Japan have been increasing in recent years.
The Japanese market requires compliance with food-safety regulations, but the number of farmers obtaining GAP certification is increasing, and the barriers to export are gradually coming down.
The development of the processing and export industry
One reason Vietnam's nut industry has international competitiveness is improvements in processing technology. Exports once centered on raw materials, but exports of value-added processed products are increasing.
The current state of processing facilities
Large-scale processing plants are clustered near Ho Chi Minh City and in Binh Phuoc Province. A growing number of companies have diverse product lines, such as roasted, salted, and flavored nuts.
On the food-safety front, more plants are obtaining ISO 22000 and BRC certification. Their credibility with buyers in the West and Japan is also rising.
Trends in export value
In 2023, the export value of nuts, including cashew nuts, reached about US$3.6 billion. This is among the largest figures within Vietnam's overall agricultural exports. The export value of macadamia nuts alone is still small, but it is growing at a pace of more than 20% a year.
A business opportunity for Japanese companies
The number of Japanese food importers paying attention to Vietnamese nuts is steadily increasing, because they are price-competitive and their quality is steadily improving.
Points when sourcing
Exporting to Japan requires meeting pesticide-residue standards. The Vietnamese government is also strengthening pesticide management to comply with Japan's Positive List System.
Farm visits through a local partner and sample testing are important steps. Rather than placing a large order all at once, an approach that builds a trusting relationship starting from small lots success stories is commonly seen.
| Check item | What to confirm |
|---|---|
| Pesticide-use records | Compliance with JAS and the Food Sanitation Act |
| Processing plant certification | ISO 22000, BRC, etc. |
| Traceability | Traceability from farm to shipment |
| Export results | Whether they have experience with Japan |
Summary
Vietnam's nut industry is now at a major turning point. Macadamia, an emerging crop, is growing rapidly in the highlands, and traditional peanut cultivation is also raising its quality for export. Improvements in processing technology and the acquisition of food-safety certifications are advancing, and points of contact with the Japanese market are expanding.
Keeping track of local production and export trends on an ongoing basis should be the first step to seizing a business opportunity.
At VN AGRI, we share the latest information on Vietnamese agriculture.
