News

Vietnam stands as a leading global exporter of cassava and its by-products; however, the industry faces challenges in enhancing product quality to boost competitiveness. The export target for cassava is set at USD 2 billion. Despite Vietnam's significant role in the cassava market, exports have been impacted by fluctuations, particularly in the Chinese market, which constitutes a major share of exports.

In the first five months of 2024, exports of cassava and related products to China displayed instability, with May exports reaching a three-year low of 83,000 tons, valued at USD 39 million—a stark decline of 50% in quantity and 46% in value from the previous month. Overall, Vietnam exported 1.24 million tons of cassava products during this period, valued at USD 562 million, marking an 8.4% decrease in volume but a 6.4% increase in value compared to the same timeframe in 2023.

The downturn in exports has been attributed to a substantial drop in China's demand for imported cassava chips, which decreased by 65% in volume during the first four months of 2024. Additionally, lower prices of corn starch have led to decreased demand for cassava starch in China, particularly during the hot season.

Looking ahead, traders expect a rebound in cassava exports starting in July 2024 as Chinese factories are anticipated to resume purchases due to dwindling inventories. The demand for cassava starch is expected to improve in preparation for the Mid-Autumn Festival.

Despite these potential recovery signs, experts highlight the necessity for Vietnam's cassava industry to focus on product quality and differentiation, particularly in the cassava starch segment, where Thai products have been recognized for their stability and uniformity. This emphasis on quality and innovation is crucial for maintaining and enhancing Vietnam's position in the global cassava market.

Source: https://vietnamagriculture.nongnghiep.vn/vietnams-cassava-industry-needs-outstanding-products-d391949.html