Vietnam Intersnack Cashew Company Limited (Vietnam)

The subject is engaged in the production, processing and export of cashew nuts. According to a staff of the subject, domestic sources of raw cashew nuts still cannot meet the company's needs. Therefore, the company imported more raw cashew nuts from Cambodia and Africa. The subject has 4 factories in Vietnam with total workforce of 2,000 employees. Besides domestic market, its products are exported to Italy, Germany, China, Brazil, Netherlands... EU is still the company's main export market.In recent years, the company has faced high inventory due to adverse market developments. In 2021, the company used its products for improper purposes without declaring change of use to the Customs authority. Specifically, the company sold and consumed domestically 8,698 tons of imported cashew raw materials of poor quality, worth over VND 214 billion of imported cashews while this amount of cashew nuts should have been produced for export purposes. After that, the Customs agency issued a decision to assess taxes and collect more than VND 10 billion in taxes for the subject. After the Customs authority issued the tax decision, the company paid the full tax amount into the State budget. According to the company's explanation, due to the high inventory of waste products, some of which had reduced quality, the company switched to domestic consumption to reduce losses. It is not aware of the need to explain and ask permission from authorities.In April 2023, Vietnam had 323 businesses participating in exporting cashew kernels, of which Olam Iz Bien Hoa II, Long Son JSC., Olam Quy Nhon, Phuc Vinh and Vietnam Intersnack (the subject) are 5 enterprises with the largest export volume of cashew kernels.Statistics from the General Department of Customs showed that in August 2023, cashew export reached 60,584 tons, with a turnover of USD 333.8 million, an increase of 10.8% in volume and an increase of 9.7% in value compared to the previous month. Cumulatively in 8 months, cashew export reached 395,598 tons, with a turnover of USD 2.27 billion, an increase of 15.5% in volume and an increase of 11.3% in turnover compared to the same period in 2022. According to the Import-Export Department - Ministry of Industry and Trade, in August 2023, the average export price of cashew nuts reached USD 5,510 /ton, down by 1.0% compared to July 2023 and down by 5.7% compared to August 2022. In the first 8 months of 2023, the average export price of cashew nuts in Vietnam reached USD 5,760 /ton, down by 3.6% compared to the same period in 2022. Thus, the export price of cashew kernels is at the lowest level in the history of the cashew industry.In 2023, the cashew industry has gone through a difficult time and factories are still trying to maintain their workforce, waiting for the market to recover and have a good source of workers available to continue production. On the other hand, in order to maintain the source of raw materials and the source of customers selling cashew kernels, businesses are trying their best to keep the relationship between buyers and sellers harmonious until the end of this year, and hope that next year there may be compensation.