Rice exports confidently "finished" US$ 3.3 billion

VCN - Increasing export volume and value in the first eight months of this year, rice exports for the whole year are expected to reach the target of about 3.2-3.3 billion USD. However, to export more sustainably and ensure stable and competitive export prices, Vietnam's rice industry needs to focus on improving quality, diversifying products, and building Vietnamese rice brands in the international market.
VN to earn around $3.3 billion from rice exports this year: experts VN to earn around $3.3 billion from rice exports this year: experts
Bright prospect ahead for Vietnamese rice exports Bright prospect ahead for Vietnamese rice exports
Inconsistent quality, high logistics cost holding back VN rice exports: experts Inconsistent quality, high logistics cost holding back VN rice exports: experts
From now to 2030, Vietnam can convert agricultural land to industrial land or other crops by about 400,000 hectares. Photo: N. Thanh
From now to 2030, Vietnam can convert agricultural land to industrial land or other crops by about 400,000 hectares. Photo: N. Thanh

Precarious price

According to the Ministry of Agriculture and Rural Development, in the first eight months of 2022, rice exports reached over US$2.3 billion, up 18.1% in volume and 8.1% in value over the same period last year. However, despite the increase in both volume and value, it is noticeable in this year's rice export "picture" that the price of rice has decreased compared to 2021, with certain precariousness.

According to the Vietnam Food Association, on August 26, the export price of 5% broken, 25% broken and broken rice in Vietnam was 393 USD/ton and 378 USD/ton, respectively. These prices are lower than 418 USD/ton and 397 USD/ton of Thai rice of the same type. However, the price of Vietnamese rice was higher than the price of rice of the same type in India and Pakistan.

Meanwhile, about a month ago, on July 26, Vietnam's rice price was considered stable and at the highest level among the world's largest rice exporting countries. Specifically, the price of Vietnam's 5% broken rice traded at $413/ton, $13/ton higher than Thai rice and $70/ton higher than Indian rice. As for 25% broken rice, Vietnam's rice is at 393 USD/ton, 2 USD/ton higher than Thai rice.

Evaluation of rice export price this year was not as expected, said Do Ha Nam, Vice Chairman of the Vietnam Food Association. Normally, the price will increase when food is out of season and goods are in short supply. Meanwhile, this year, the major rice-producing countries have good harvests, increased output, and high inventories. In addition, when countries have high food demand, Vietnam also pours excessive supply. The proof is that Vietnam's rice export output has increased by nearly 20% compared to the previous year.

From the perspective of specific export enterprises, Nguyen Van Don, Director of Viet Hung Co., Ltd. assessed that, in general, market demand is weak and purchasing power is not high. Since the beginning of the year, Vietnamese rice has been mainly exported to the Philippines, while exports to the Chinese market have declined. However, the Philippine market mainly demands to import rice at a medium price. Other markets are still stable, but the import volume is not high. Therefore, it is likely that the rice market will continue to be quiet until the end of the summer-autumn rice harvest.

Do Ha Nam added that exporting rice to the Chinese market faced many difficulties, mainly due to the Covid-19 epidemic. In addition, China has a high demand for ST rice this year, but Vietnam does not have enough to meet it. Therefore, ST rice mainly serves the domestic market. Furthermore, with the situation of the Covid-19 epidemic in China, import demand is expected to decrease because the demand for rice for processing into products is lower.

In the Philippines market, Do Ha Nam analyzed, from the beginning of the year until now, this market's rice imports have grown by 20% compared to the same period last year, and the country has started the harvest season. These factors make it difficult for rice exports to the Philippines until the end of the year to have a breakthrough in growth.

"Going to the finish line" US$ 3.3 billion

Regarding the rice export target for the whole year, Nguyen Nhu Cuong, Director of the Department of Crop Production (Ministry of Agriculture and Rural Development), said that up to now, the cropping industry still ensures the production plan, with planting about 7.24 million hectares, the output is over 43 million tons of rice. "If there are no weather abnormalities or epidemics, Vietnam has enough rice output to ensure rice exports from 6.5 to 6.7 million tons. However, the export price of rice depends on the world market," said Nguyen Nhu Cuong.

Regarding rice export, Deputy Minister of Agriculture and Rural Development Phung Duc Tien further informed that the average export price of Vietnam's rice is currently about $479/ton, down about 8.8% over the same period last year. However, if there are no abnormalities in weather and epidemics, Vietnam will have enough 6.5-6.7 million tons of rice for export, and it is expected that export turnover will reach about 3.2-3.3 billion USD. "In the coming time, the rice industry needs many solutions to improve output, quality, and build a brand," emphasized the Ministry of Agriculture and Rural Development leader.

Regarding the rise and fall of rice prices and the need to reduce rice acreage, especially in the Mekong Delta, Nguyen Nhu Cuong affirmed that Vietnam is an agricultural country, therefore, at least in the Mekong Delta region. Furthermore, cultivation is to ensure food security for 100 million Vietnamese people. Therefore, it is necessary to ensure a certain area not only in the short term but also in the long term.

According to the General Statistics Office (Ministry of Planning and Investment) and the Ministry of Natural Resources and Environment, Vietnam has about 3.9 million hectares of rice land. According to the Resolution of the National Assembly as well as the conclusions of the Central Government, it will keep 3.5 million hectares of rice land until 2030. Therefore, from now to 2030, Vietnam can convert agricultural land to public land or other crops, about 400,000 ha. Of course, this transformation takes a process. However, this is a flexible and effective transformation to stabilize the agricultural industry and ensure food security and export.

Regarding the project to develop one million hectares of high-quality rice, Nguyen Nhu Cuong added that this one million hectare of high-quality rice land is not simply a high-quality rice variety. However, in the scheme, it is necessary to propose the following policies: policies to attract rice production, business, processing and export enterprises to invest in storage, processing, and logistics to create the highest efficiency. In addition, waste by-products must be utilized to create high-tech products, deeply processed from rice; mechanisms and policies support rice growers in organizing and investing in production.

"The Department of Crop Production is consulting the Minister of Agriculture and Rural Development in this project to focus on developing several policies to support rice export enterprises to focus on developing together with farmers to diversify agricultural industries, improve agricultural products, build a brand of Vietnamese rice, not simply one million hectares of fragrant, high-quality rice varieties," emphasized Nguyen Nhu Cuong.

By Thanh Nguyen/ Huu Tuc

Related News

Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

VCN - Scrap is a sensitive item with many potential risks of environmental pollution, directly affecting human health and the ecosystem. Therefore, strict management measures are needed to avoid the risk that Vietnam become a scrap gathering country in the world.
Opening the door to attracting high-quality FDI from Europe and America

Opening the door to attracting high-quality FDI from Europe and America

VCN - Vietnam boasts extensive experience in attracting foreign direct investment (FDI). Notably, the enhancement of diplomatic relations between Vietnam and the United States has catalyzed a significant increase in the flow of FDI from the US and Europe into Vietnam.
3 recommendations of seafood businesses were promptly answered by the Ministry of Finance

3 recommendations of seafood businesses were promptly answered by the Ministry of Finance

VCN - Recommendations of seafood enterprises on declaring, calculating and paying Value Added Tax (VAT) at the commercial business stage for scrap and discarded products; Invoicing for returned goods; VAT refund, has been specifically answered by the Ministry of Finance.
Regulating prices and controlling inflation in the "variables"

Regulating prices and controlling inflation in the "variables"

VCN - Unpredictable developments will certainly have a major impact on the price market as well as domestic inflation control in 2024. Therefore, successful results and solutions from 2023 will be a "pedestal" for 2024.

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.
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.
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.
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