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Employees work at Tan Viet JSC. Photo N.T |
The cashew nut processing for export is one of key industries in Binh Dinh. Many cashew nut processing enterprises have, however, faced many difficulties.
Favorable conditions
At present, Vietnam has become the world’s largest cashew nut exporter after being ranked second for many years. Binh Dinh has contributed to nearly 10,000 tons of cashew nuts for export per year.
“Building a cashew nut processing factory requires a small capital, only VND2-3 billion. Also, the export has many favorable conditions. Thus, the cashew nut processing industry has strongly developed recently,” said Le Duy Trung, Director of Binh Dinh vegetable oil JSC.
Currently, the price of cashew nuts for export in the world is stable, recording at US$6,000 per ton, a surge of 20 percent over 2007.
Demands in the U.S, European countries, and China are increasing. This is expected to promote the development of cashew nut processing enterprises.
We didn’t have to worry about the export because the company signed many contracts for export cashew nuts in late 2007, said Director of Tan Viet JSC, Phan Hau. Alongside this, other companies have signed many export contracts, ensuring the stable production.
Difficulties
The cashew nut processing industry has many favorable conditions for the development. However, it needs other factors to sustainably develop, such as advanced technologies, raw material, and qualified workforce.
The cashew nut processing is done by hands and machine, but Binh Dinh’s enterprises mainly base on the manual procedure. It is the manual production which reduces their profit as well as competitiveness.
The shortage of raw material is another problem. Most enterprises have to buy the raw material from other provinces, making the cost increase.
The biggest difficulty is the shortage of workforce. Owing to this, factories can’t be fully operational. The reason is that the income for those who work at cashew nut processing enterprises is lower than other industry.
We couldn’t recruit all laborers as required; meanwhile, the number of employees frequently fluctuated, badly affecting our production, said Director of Tien Anh cashew nut processing enterprise Nguyen Nhat Quang.
Together with favorable conditions, the above-mentioned difficulties must be solved soon so that the cashew nut processing industry in Binh Dinh will be able to strongly develop.
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