The Ministry of Industry and Trade proposes a “way out” for Vietnamese cassava exports

Cassava export volumes have risen sharply, but low value and heavy reliance on a limited number of markets have exposed the sector to significant risks. This underscores the urgent need for deeper processing and market diversification strategies.

Cassava and cassava-based products are among Vietnam’s key agricultural export commodities, contributing to job creation, farmers’ incomes, and a significant share of agricultural export turnover. In the context of increasingly deep international economic integration, cassava exports not only carry economic significance but also reflect the competitiveness of Vietnam’s agricultural sector in the global marketplace.

According to data from the General Department of Vietnam Customs, in 2025 Vietnam exported more than 3.9 million tons of cassava and cassava-based products, equivalent to over USD 1.26 billion. Compared to 2024, export volume surged by 52.2%, while export value increased by only 9.8%. The wide gap between volume and value growth indicates that export efficiency remains inconsistent with shipment scale.

In December 2025 alone, cassava exports reached 373,219 tons worth USD 135.1 million, up 39.4% in volume and 42.6% in value compared to November 2025. While this reflects strong year-end demand, it also highlights the pronounced seasonality of cassava exports and the lack of long-term stability.

Vietnam’s cassava exports in 2025 remained overwhelmingly concentrated in the Chinese market. Exports to China reached approximately 3.7 million tons, valued at USD 1.17 billion, accounting for 94.1% of total export volume and 92.6% of total export value. Compared to 2024, export volume to China rose by 54.3%, while export value increased by only 10.8%, reflecting falling average export prices and mounting price pressure due to market dependence.

Beyond China, Vietnam exports cassava to markets such as Taiwan (China), Malaysia, and the Philippines. However, export volumes to these destinations remain modest and insufficient to rebalance the market structure. Notably, in the Taiwan market, although export volume rose by 15.8%, export value fell by 17.1%, indicating a sharp decline in prices and limited competitiveness.

At the conference titled “Vietnam’s Cassava Supply Chain: Current Situation and Challenges,” Ms. Vương Thị Oanh, representative of the Import-Export Department under the Ministry of Industry and Trade, emphasized that Vietnam’s cassava exports are now almost entirely dependent on the Chinese market. Such high concentration exposes the sector to risks stemming from policy shifts, demand fluctuations, and price volatility in that single market.

Although export volumes to China increased sharply in 2025, average export prices trended downward. This reflects limitations in price negotiation capacity and in the global positioning of Vietnamese cassava, which is still largely exported in raw or semi-processed form.

The root of the issue lies in the product structure. Dried cassava chips and minimally processed cassava starch account for a large share of total export turnover. These products have low added value, face intense competition, and are highly vulnerable to price declines when supply exceeds demand.

The absence of deeply processed, high-tech products has prevented cassava exports from achieving value commensurate with Vietnam’s production scale and potential. Moreover, exports remain seasonal and dependent on short-term demand and customs clearance conditions. Long-term contracts and stable linkages among production, processing, and consumption are still limited, undermining sustainability.

In response to the imbalance between volume and value growth, the Ministry of Industry and Trade has stressed that the fundamental and long-term solution lies in enhancing added value through deeper processing. This involves gradually reducing the share of dried cassava chips and semi-processed starch while encouraging investment in high-tech products such as modified starch and products serving the food, pharmaceutical, industrial, and bioenergy sectors.

At the same time, export market diversification has been identified as a key solution to reduce dependence on China. Besides maintaining traditional markets, efforts should be intensified to expand into promising destinations such as Malaysia and the Philippines, as well as other regional and global markets. Diversification would help spread risks, strengthen price negotiation capacity, and enhance overall export stability.

Improving raw material zones and product standards is also critical. Planning concentrated cassava-growing areas, adopting high-yield and high-starch varieties, and strengthening input quality control will enhance raw material quality. Meeting increasingly stringent technical standards, food safety requirements, and traceability regulations in importing markets is essential for penetrating higher-value segments.

Strengthening supply chain linkages among farmers, cooperatives, and processing and exporting enterprises is equally important. Sustainable linkage models can secure stable raw material supplies for enterprises while guaranteeing market access and reasonable prices for growers. Medium- and long-term contracts would help reduce seasonality and improve both efficiency and sustainability.

Finally, reducing logistics costs is a crucial factor in enhancing competitiveness. Investment in storage and drying facilities, improved transport infrastructure, stronger market forecasting, and better export coordination capacity will enable enterprises to operate more proactively.

As cassava export volumes continue to rise, the sector faces a clear strategic turning point. Moving from raw material exports to higher-value, diversified products will determine whether Vietnam’s cassava industry can transform rapid quantitative growth into sustainable qualitative development in the years ahead.

Vietnamese source: https://congthuong.vn/bo-cong-thuong-de-xuat-loi-ra-cho-xuat-khau-san-440921.html