Promising future for rice exporters
Vietnamese rice exports are expected to grow stronger by the end of the year
Over the first nine months of the year, Vietnam shipped 4.9 million tonnes of rice abroad, earning US$2.5 billion, up 22% from the same period last year.
Cong said that this is an impressive result, attributing the achievement to the effective rice sector restructuring programme which channels focus on developing high-quality and fragrant rice to bolster exports to choosy markets.
Up to 80% of exports now are classified as high-quality rice and sold at more than US$500 per tonne, he said, adding that market persification has been a catalyst for Vietnamese rice shipments.
China’s sudden imposition of a 50% tariff on rice imports from July affected rice consumption in this market, especially sticky rice. At some points, Chinese traders paid only US$380 per tonne for sticky rice, compared to the US$530-US$540 per tonne at the beginning of the year. However, Vietnamese firms have worked to enhance rice exports to Iraq, the Philippines, Malaysia, the Ivory Coast, and the United Arab Emirates (UAE).
In particular, the Government’s new Decree No.107/2018/ND-CP, which will take effect from October 1, will remove difficulties and legal barriers for rice exporters to expand foreign markets. Accordingly, rice exporters will no longer be required to own rice storage, paddy milling, and grinding facilities with processing capacities of 5,000 tonnes of rice. In addition, customs procedures will be simplified, creating favourable conditions for enterprises to export more to large consuming markets like China, Europe, Africa, Iraq, Cuba, and the UAE.
In the coming time, purchase demand will pick up in some countries, such as the Philippines which will be needing to import an additional 500,000-800,000 tonnes of rice by the end of this year to refill exhausted reserves and stabilise the domestic rice price.
Chinese enterprises have been working with firms from the Mekong Delta region to seek cooperation in rice trading. Meanwhile, Indonesia and several African countries also hold high demands for rice imports in response to output decline due to floods and storms.
Local firms are seeking ways to boost sticky rice shipments to Indonesia to reduce its dependence on the Chinese market. The move has increased the cost of sticky rice from just below US$400 per tonne in July and August, to US$440 per tonne now.
Furthermore, as local firms reduce export costs, Vietnamese rice will gain a competitive edge over that grown in India and Thailand, Cong noted.
Related News
Mobilizing finance for the low-emission rice value chain
10:42 | 28/09/2024 Import-Export
Mobilizing finance for low-emission rice value chains
09:33 | 11/09/2024 Import-Export
Becoming a green hydrogen exporter: Vietnam can elevate its economic position
09:31 | 03/09/2024 Headlines
Rice exports to China drop sharply
08:03 | 20/06/2024 Import-Export
Latest News
Import and export are expected to reach 800 billion USD
13:32 | 04/11/2024 Import-Export
Fresh coconuts quenching new overseas markets
13:29 | 04/11/2024 Import-Export
Rice exports likely to set new record in 2024
13:25 | 04/11/2024 Import-Export
Vietnamese goods conquer halal market through trust and quality
09:57 | 04/11/2024 Import-Export
More News
Exporters urged to have strategies to take advantage of UKVFTA for expansion
17:33 | 03/11/2024 Import-Export
Fresh coconuts quenching new overseas markets
17:29 | 03/11/2024 Import-Export
Vietnam and UAE trade sees billion-dollar growth
07:15 | 03/11/2024 Import-Export
Sharing responsibility for ensuring security and safety of the supply chain
07:13 | 03/11/2024 Import-Export
Many factors affecting tuna exports in the last months of the year
19:38 | 02/11/2024 Import-Export
Vietnam still dominates Philippine rice import
19:36 | 02/11/2024 Import-Export
Vietnam cements ties with partners to engage in global semiconductor, AI industries
19:35 | 02/11/2024 Import-Export
Aquatic exports expected to rise in year-end despite challenges
19:33 | 02/11/2024 Import-Export
Trade Defense: The Key to Success for Vietnamese Businesses
10:39 | 02/11/2024 Import-Export
Your care
Import and export are expected to reach 800 billion USD
13:32 | 04/11/2024 Import-Export
Fresh coconuts quenching new overseas markets
13:29 | 04/11/2024 Import-Export
Rice exports likely to set new record in 2024
13:25 | 04/11/2024 Import-Export
Vietnamese goods conquer halal market through trust and quality
09:57 | 04/11/2024 Import-Export
Exporters urged to have strategies to take advantage of UKVFTA for expansion
17:33 | 03/11/2024 Import-Export