2023 set to be favourable for Vietnamese rice enterprises

The Vietnamese rice industry is set to benefit from the high demand and prices this year, with lower input costs leading to expanded profit margins for rice businesses.

2023 set to be favourable for Vietnamese rice enterprises hinh anh 1

A rice field in Vi Thuy district in the Mekong Delta province of Hau Giang. Vietnam will benefit from the upward trend in rice prices due to limited supply. (Photo: VNA)

The Vietnamese rice industry is set to benefit from the high demand and prices this year, with lower input costs leading to expanded profit margins for rice businesses.

According to an expert from Vietnam Securities Company Limited Bank for Foreign Trade (VCBS), the country's rice industry enjoys favourable factors, such as weather and geographical advantage.

The prolonged drought in China has caused a decrease in the country's output for the 2021-2022 crop, leading to an anticipated six million tonne increase in rice imports for the 2022-23 crop.

Meanwhile, inventories in the Philippines have declined due to typhoons and high fertiliser costs, leading to increased rice imports.

The cultivated area in India has also dropped due to drought, making the decrease in supply - the main factor for the forecast of the global rice deficit.

Despite these challenges, the hydrological situation in Vietnam has been stable, with heavy rain in the past year and a neutral outlook in the first half of this year, leading to sound output.

VCBS appreciates the possibility that Vietnam will benefit from the upward trend in rice prices due to limited supply and the shift in demand from India this year.

The rising food demand has pushed the price of Indian rice exports to the highest level in nearly two years.

A Vietnamese trader also noted that global demand for rice has been increasing due to concerns about global instability.

The total commodity of rice is expected to reach 4.1 billion tonnes in the first six months of this year, with rice exports reaching 390,000 tonnes in January.

The consumption of commodity rice in the remaining five months is expected to reach 3.73 million tonnes, not including the amount of rice imported from India and the amount of rice flowing from Cambodia to Vietnam.

VCBS also reported that European countries had eased sanctions and opened their doors to Russian fertiliser exporters, while China has loosened its fertiliser export quota from June last year.

This development is forecasted to decrease input costs for rice production, contributing to an improvement in the profit margin of enterprises.

Although exports grew last year, the cost of rice production also increased sharply, "eroding" the profits of many businesses.

The Vietnamese Food Association (VFA) reported that the cost of rice production rose sharply last year, pushing up the purchase price of rice and commodity rice and putting pressure on rice exporters.

Despite the challenges faced last year, analysts expect Vietnamese rice exporters to be more favourable this year as rice prices remain high and many production costs and rice exports gradually decrease, increasing the profit margin of enterprises in the rice industry./.

en.vietnamplus.vn

Related News

Heading toward the official implementation of the Voluntary Compliance Program

Heading toward the official implementation of the Voluntary Compliance Program

VCN - Through implementing the Pilot Program on supporting and encouraging businesses to voluntarily comply with customs laws, the compliance level of many member businesses has improved significantly.
Find ways to a corporation for businesses in industrial parks

Find ways to a corporation for businesses in industrial parks

VCN - The country has nearly 300 industrial parks in operation, but with the requirement to join the global value chain, the issue of linkage and connection between businesses in industrial parks and industrial clusters needs to be concentrated on more.
Khanh Hoa Customs announce information of 12 enterprises owing over VND65 billion of tax

Khanh Hoa Customs announce information of 12 enterprises owing over VND65 billion of tax

VCN - According to Khanh Hoa Customs Department, through checking and review until March 31, 2024 at the unit, there is 12 enterprises and one individual owing tax debt of over VND65 billion.
Da Nang Customs: Bring the Customs – Business partnership activities into practice

Da Nang Customs: Bring the Customs – Business partnership activities into practice

VCN - Activities to develop Customs-Business partnerships are implemented by Da Nang Customs Department to transform the content and methods so that business support activities can be put into practice.

Latest News

More efforts needed to maintain export growth to China: Insiders

More efforts needed to maintain export growth to China: Insiders

Exporters should further strengthen trade connections and improve the quality of their goods to sustain export growth to China as this is no longer a "lenient" market, said insiders.
It is expected that there are higher orders and revenue in the second quarter from European businesses

It is expected that there are higher orders and revenue in the second quarter from European businesses

VCN - The Business Confidence Index (BCI) according to a survey by the European Business Association in Vietnam (EuroCham) reached 52.8 in the first quarter of 2024 - the highest level since 2022, showing increasing confidence in Vietnam's European business community.
Vietnamese rice prices on the hike

Vietnamese rice prices on the hike

The prices of Vietnamese paddy and rice continued to increase last week, according to the the Vietnam Food Association (VFA).
FDI flow into garment and textile sector bounces back

FDI flow into garment and textile sector bounces back

The flow of foreign direct investment (FDI) into the Vietnamese garment and textile sector has rebounded thanks to the country’s sound investment climate and abundant workforce as well as its open economy, according to insiders.

More News

Investors play a key role in developing the industrial park system

Investors play a key role in developing the industrial park system

VCN - Dr. Phan Huu Thang, Chairman of the Executive Committee of the Vietnam Industrial Park Finance Association, former Director of the Foreign Investment Department (Ministry of Planning and Investment), said that basically, developing an industrial park successfully or not mainly depends on businesses, entrepreneurs - industrial park investors.
Export turnover of two agricultural product groups grows three-digit

Export turnover of two agricultural product groups grows three-digit

VCN – In March, the export turnover of agricultural product groups grows three-digit compared with the previous month.
Early warnings reduce risks in trade defense

Early warnings reduce risks in trade defense

VCN - In the first months of 2024, export turnover of goods grew strongly, continuing the recovery momentum from the end of 2023. Along with that, the risk of trade defense investigations also escalated
Rubber exports are flourishing, promising potential

Rubber exports are flourishing, promising potential

VCN - Rubber exports reached 414.31 thousand tons in the first quarter of 2024, worth US$607.35 million, increasing 8.5% in volume and 14.3% in value compared to the same period in 2023.
Vietnam becomes biggest rice supplier for Singapore

Vietnam becomes biggest rice supplier for Singapore

Vietnam has for the first time surpassed India and Thailand to become the largest rice exporter to Singapore by shipping 36.15 million SGD (26.55 million USD) worth of rice in the first three months of this year, an increase of 80.46% over the same period in 2023, winning 32.03% of the market share, according to the Vietnam Trade Office in Singapore.
Vietnam an attractive destination for electronics, semiconductor investors: Official

Vietnam an attractive destination for electronics, semiconductor investors: Official

Vietnam has strong infrastructure and research and development incentives as well as a skilled workforce, making it an attractive for “eagles” worldwide in the electronics and semiconductor industry, according to Deputy Minister of Planning and Investment Tran Duy Dong.
Wood exports started well

Wood exports started well

VCN - After a year of missing the growth target, the year of 2024 exporting wood and wood products has had a good start, but there are still many potential risks.
Take advantage of e-commerce leverage for export

Take advantage of e-commerce leverage for export

VCN - Exporting via e-commerce is gradually becoming popular and becoming a trend that many businesses are interested in.
Vietnam earns 1.43 billion USD from rice exports in Q1

Vietnam earns 1.43 billion USD from rice exports in Q1

Vietnam in the first quarter of 2024 exported 2.18 million tonnes of rice, earning 1.43 billion USD, an increase of 17.6% in volume and 45.5% in value year on year. Meanwhile, the average export rice price also increased by 23.6% to $653.9 per tonne.
Read More

Your care

Latest Most read
More efforts needed to maintain export growth to China: Insiders

More efforts needed to maintain export growth to China: Insiders

Exporters should further strengthen trade connections and improve the quality of their goods to sustain export growth to China as this is no longer a "lenient" market, said insiders.
It is expected that there are higher orders and revenue in the second quarter from European businesses

It is expected that there are higher orders and revenue in the second quarter from European businesses

VCN - The Business Confidence Index (BCI) according to a survey by the European Business Association in Vietnam (EuroCham) reached 52.8 in the first quarter of 2024 - the highest level since 2022, showing increasing confidence in Vietnam's European busine
Vietnamese rice prices on the hike

Vietnamese rice prices on the hike

The prices of Vietnamese paddy and rice continued to increase last week, according to the the Vietnam Food Association (VFA).
FDI flow into garment and textile sector bounces back

FDI flow into garment and textile sector bounces back

The flow of foreign direct investment (FDI) into the Vietnamese garment and textile sector has rebounded thanks to the country’s sound investment climate and abundant workforce as well as its open economy, according to insiders.
Investors play a key role in developing the industrial park system

Investors play a key role in developing the industrial park system

VCN - Dr. Phan Huu Thang, Chairman of the Executive Committee of the Vietnam Industrial Park Finance Association, former Director of the Foreign Investment Department (Ministry of Planning and Investment), said that basically, developing an industrial par
Mobile Version