Feeling elated when exporting rice in the beginning of the year

Vietnam's rice exports had a successful year in 2018. Source: Internet

This will be quite a positive signal for Vietnam's rice exports. Specifically, after the Philippines removed its import restriction policy, 166 Filipino companies have applied to buy 1 million tons of rice, in that there are many purchasing orders for Vietnamese rice. Under the new Philippines policy, all imported rice will be taxed at 35%, if originating from ASEAN, and with 50% with non-ASEAN countries.

The Agro Processing and Market Development Authority stated: Although the export of rice to the Philippines will be easier, Vietnam must compete fiercely with other countries in the region such as Cambodia, Myanmar and Thailand.

Regarding rice export, they also provide more information: The demand of importing rice to China - a Vietnamese traditional market that may encounter great pressure due to China changing its border management policy and controlling its main imports. There is also the consideration of increased investment of rice production in regional countries such as Cambodia, Myanmar and Thailand.

Statistics from the Agro Processing and Market Development Authority showed that rice exports in 2018 reached 6.1 million tons, with a value of $US 3.04 billion, increasing by 4% in volume, and 15.3% in value compared to 2017.

For the whole year, rice prices increased due to increased demand in order to meet export contracts with a price of IR50404, increasing from 200-300 VND (per kilogram…?), reaching an average level from 5,400-5,500 VND/kg. In September it reached the highest level in the year of 5,600-5,700 VND/kg; High quality rice increased by about 300-400 VND/kg, reaching a popular level of 5,700 VND/kg.