Vietnam

Vietnam is the world’s largest processor of cashew kernels — and an important producer of raw cashew nuts.
Participating companies

Background

From 2018 to 2021 the project focused on addressing the sustainability risks that were identified in a baseline study in 2018. TSince 2018, Ethical Trade Norway has collaborated with Vietnamese partners, farmers, processors, and international buyers to strengthen sustainability, labour standards, and traceability in the cashew nut supply chain.


The project is now in its third phase, continuing the work to build responsible, transparent, and inclusive cashew production and supply chains.

Phase 1 (2018–2021): Laying the groundwork for responsible cashew production

The first phase of the project focused on tackling sustainability risks identified in a 2018 baseline study of Vietnam’s cashew industry . The study revealed key challenges, including low income for farmers, lack of knowledge on good agricultural and environmental practices, and weak labour standards among processors and subcontractors — such as missing contracts, excessive overtime, low wages, and poor health and safety conditions.

With support from Norad, the project delivered training to exporting factories and subcontractors on labour standards and social dialogue. A trainer-of-trainers programme was also launched for farmers, with 80 participants completing ten training modules on good agricultural practices. Two major industry workshops were held, and factories reported noticeable improvements in social dialogue and complaint handling.

Phase 2 (2022–2024): Scaling up and strengthening the supply chain

The second phase, funded by participating companies, Ethical Trade Norway, and the NorgesGruppen sustainability fund HANDLE, expanded the work in three areas:

  • Scaling up farmer training in good agricultural practices, environmental stewardship, and labour standards. 240 farmers were trained in ten modules covering soil management, pruning, fertilizer use, pesticide safety, and awareness of child labour and discrimination.
  • Exploring sustainable and traceable supply chain linkages, documenting current challenges and facilitating dialogue between farmers, processors, and buyers. Staring collaboration with cashew cooperatives.
  • Strengthening processors’ capacity to implement labour standards and effective social dialogue mechanisms.

The project conducted an industry workshop in Ho Chi Minh City in April 2023 to bring together stakeholders to share insights on traceability challenges and opportunities.


In 2024, the project conducted and published a Guidance for buyers on due diligence and engagement with Vietnamese cashew farmers. The project also conducted a large study, involving over 100 interviews with stakeholders, to document the project’s outcomes and impact at factory and farmer level. This was finalized in the beginning of 2025 and shows positive change.

Phase 3 (2025–2026): Driving change through collaboration and innovation

The project’s current phase continues under a member-funded model, leveraging the strong foundation built in previous years. The focus is on reaching further, deepening impact, and continue to promote responsible business conduct.

  • Farmer Training: Training continues with 80 new farmers across four new communes. All modules are now also being converted into digital formats to expand reach and accessibility.
  • Sustainable supply chain linkages through strengthening of cooperatives: A collaboration fora has been established to help cashew cooperatives exchange knowledge, share best practices, and build operational capacity — essential for achieving effective traceability and scaling sustainable production.
  • Labour Standards and Social Dialogue trainings: Updated training now includes modules on human rights due diligence and upcoming EU regulations, ensuring suppliers stay aligned with evolving international expectations. Project participants continue to nominate their suppliers.

In January 2025, the project hosted a major industry workshop in Ho Chi Minh City bringing together all stakeholders — farmers, cooperatives, processors, buyers, and government representatives — around two central themes:

  1. Scaling Sustainable Practices and Monitoring Progress Across the Supply Chain
  2. Strengthening Traceability and Harnessing Technology for Transparency and Impact

Participants discussed how to accelerate improvements, monitor progress, and explore digital solutions to enhance supply chain transparency and efficiency.

Two dedicated workstreams within the project group now work on two dedicated topics: one on supply chain mapping and traceability, and another on documenting measurable improvements among processors and subcontractors. Insights and lessons learned are shared within the project group to drive collective progress.

Project Partners

  • SDRC (Center for Social Work – Community Development Research and Consultancy)
  • Vietnam Cashew Association (VINACAS)
  • Binh Phuoc Cashew Farmers Association
  • Binh Phuoc Cashew Association
  • Research Center for Employment Relations (ERC)

Participating Companies

Importaco S.A.

Axfood AB

Coop Norge SA

FoodMan AS

Rema 1000 Norge AS

Scandza AS

Unil AS

Menken NV

Working together for improvements
Watch short intro video

Reflections from project participants
Watch video

Short description of the project Download pdf

One pager about the project Download pdf

Guidance for buyers on due diligence and angagement with Vietnamese cashew farmers Download pdf

ETN Cashew Project Vietnam Report on result and impact 2019-2024 Summary

Download pdf

For more information

Rikke Mohn Halvorsen
Rikke Mohn Halvorsen
Seniorrådgiver
47810706
simen@etiskhandel.no

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