Five and a half years of EVFTA — what Vietnam cashew gained, and what's coming next

• 1 Aug 2020: In force — 71% of Vietnam's goods to EU at 0% tariff immediately
• Target 2027: 100% of goods at 0% tariff (seven years after entry into force)
• Cashew kernel W240/W320: within the immediate 0% group from 2020 (EVFTA Annex 2-A)

• Germany: +26% in Q1/2026 [VINACAS bv4139] — fastest-growing market
• Netherlands: USD 82 million in Q1/2026 (-3%) — stable at scale
• EU total: ~21% of Vietnam's cashew exports in Q1/2026
• EVFTA impact: tariff barriers removed → Vietnamese cashew directly competitive with Indian and processed African origin

1. CBAM (Carbon Border Adjustment Mechanism) — EU imposes carbon-cost tariffs on imports from 2026

   • Impact: without carbon data for the supply chain, EU buyers will "self-estimate" — usually higher than reality → higher levies
   • Action: track carbon from raw source (CIV) through VN processing to shipping

2. Tightening food-safety standards — Salmonella, Listeria, heavy metals [VINACAS bv4135]

   • US FSMA enforcement is intensifying; EU is tightening novel food and Regulation 2073/2005 microbiological criteria
   • Buyers will demand heavier documentation

3. Digital traceability expectation

   • EU: EUDR (Deforestation Regulation) applies to several agri-commodities from 2026
   • Cashew is not yet on the EUDR list, but digital traceability expectations will spread

1. Price advantage: VN cashew W320 enters the EU at 0% duty vs India at MFN ~0-4% — a sustained cost edge
2. Single-origin story: EVFTA + transparent CIV/Cambodia/VN origin = a story asset for premium EU retail positioning
3. Bi-directional partnership: EU buyers can lock Hotanuts as their "trusted VN trade house" for long-term supply, reducing annual supplier-rediscovery risk

Hotanuts exports to 9 EU and non-EU markets: TR, NL, UK (post-Brexit), GR, CN, MY, IL, JO, LT. Among these, NL and GR are direct EU.

We are preparing:

• Carbon data collection for the CIV→VN→EU chain — starting Q3/2026
• EUDR-ready traceability — preparing for future requirements even though cashew is not yet mandatory
• BRCGS audit Q3/2026 — the step into premium EU retail tier

• If you already source Vietnamese cashew: verify that your supplier issues an EVFTA Certificate of Origin (form EUR.1) per lot → this secures your zero-duty benefit
• Assess your carbon chain — Hotanuts can contribute sourcing data for your CBAM compliance reporting