Rice gaining traction within major markets

May 09, 2024 | 10:07
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Rice exports in 2024 are shaping up to perform strongly overall, with promising results already achieved over the past several months.

In the first quarter, Vietnam exported nearly 2.2 million tonnes of rice worth $1.4 billion, up 17.8 per cent in volume and 45.6 per cent in value compared to 2023, according to the General Department of Vietnam Customs.

Among these exports, rice shipments to key markets like the Philippines, Indonesia, and Malaysia all saw significant double-digit growth. The average export price in the first quarter reached $654 per tonne, up 23.6 per cent from the same period in 2023.

Trade counsellor Phung Van Thanh of the Vietnam Trade Office in the Philippines said, “In February, the trade ministries of the Philippines and Vietnam signed an MoU on rice trading, with an annual quantity of 1.5-2 million tonnes of white rice. From this success, Vietnam is expected to maintain its position as the top rice exporter to the Philippines in 2024, with ample opportunities for businesses to further explore and expand the market, increasing rice export turnover.”

Similarly, Indonesia, the second-largest rice importer from Vietnam, raised imports to ensure food security. By February, Indonesia had experienced eight consecutive months of rice deficit due to insufficient domestic production compared to demand.

Pham The Cuong of the Vietnam Trade Office in Indonesia said, “Indonesia will soon open tenders to purchase more rice, in addition to the 500,000-tonne rice tender in January, in which Vietnamese rice exporters won contracts to supply over 300,000 tonnes. Therefore, Vietnamese rice exporters need to closely monitor market information, seize opportunities, and capitalise on early-year rice export opportunities to this market.”

The first quarter also marked Vietnam’s emergence as the largest rice exporter to the Singaporean market for the first time, capturing 32 per cent market share, surpassing India with 6.96 per cent and Thailand with 8.28 per cent. Vietnam’s rice exports to Singapore in the first quarter saw excellent growth, reaching approximately $26.6 million, up 80.46 per cent from the same period in 2023.

Rice gaining traction within major markets

Meanwhile, in the EU market, Vietnamese rice is gaining traction, with exports exceeding 100,000 tonnes in 2023.

“Currently, Vietnam’s rice mainly competes with Thailand and Cambodia, whereas Pakistan and India offer different rice varieties. Our main competitor in terms of rice quality is Thailand, but we benefit from a zero tax rate when exporting rice to the EU, giving us a much larger competitive advantage,” said trade counsellor Nguyen Hoang Thuy of the Vietnam Trade Office in Sweden.

“The total quota allocated by the EU for us is 80,000 tonnes per year of milled rice. In the very near future, the EU will eliminate tariffs on both milled rice and rice product exports from Vietnam,” Thuy added.

According to its annual shareholders’ report in 2024 published, Vinafood II achieved exports of over 755,800 tonnes, surpassing the set target by 110 per cent. The company also outlined its 2024 plan to export 703,000 tonnes of rice, an increase of approximately 96 per cent compared to the target set in 2023.

Binh Dinh Food JSC reported rice export turnover of $59.65 million in 2023, exceeding its target by 63.6 per cent. Meanwhile, in the 2023 annual report released last month by Trung An Rice Export JSC, the company’s rice exports reached $35.09 million. Leading markets included South Korea, accounting for 75 per cent market share, followed by Malaysia, Singapore, and Germany.

The export volume of over eight million tonnes in 2023 marks the highest achievement in the history of Vietnam’s rice industry since its entry into the export market in 1989, accounting for approximately 15 per cent of the total global rice exports, after India and Thailand.

At a conference on rice exports chaired by the Ministry of Industry and Trade (MoIT) on April 26, it along with the Ministry of Agriculture and Rural Development and Can Tho People’s Committee implemented several crucial solutions regarding export management and development.

To balance supply and demand, stabilise prices, and ensure food security, the MoIT has requested local people’s committees to fulfill their responsibilities and direct market management forces to enhance coordination with authorised agencies to inspect and supervise rice production and consumption activities within their respective areas. Moreover, they are also tasked with maintaining the minimum reserve levels for rice traders engaged in rice export business activities.

Rice exports soar to record 8.3 million tonnes Rice exports soar to record 8.3 million tonnes

Vietnam’s rice production in 2023 stood at 43.5 million tonnes, an increase of 1.9 per cent, adequately meeting domestic consumption, processing, animal feed production, and exports, which set a record of nearly 8.3 million tonnes.

By Vy Vy

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