Vietnamese rice opens the door to ASEAN

VCN - To increase rice export opportunities to ASEAN markets, enterprises need to review the import demand of each market in order to supply appropriately as well as pay attention to the brand identity of Vietnamese rice.
Vietnamese rice price maintains top place among regional exporters Vietnamese rice price maintains top place among regional exporters
Vietnamese rice well-received in Europe Vietnamese rice well-received in Europe
EU remains highly potential importer of Vietnamese rice EU remains highly potential importer of Vietnamese rice
Vietnamese rice is occupying a significant market share in many ASEAN countries. Photo: N. Thanh
Vietnamese rice is occupying a significant market share in many ASEAN countries. Photo: N. Thanh


Widen room

According to the latest information from the Ministry of Agriculture and Rural Development, rice exports in the first four months of this year reached 2.05 million tons with a value of US$1 billion, up 4.4% in volume but down 6% in value over the same period in 2021.

Notably, the Philippines continues to be Vietnam's largest rice consumption market with a 42.6% market share.

According to the Ministry of Industry and Trade, in order to improve the efficiency of rice exports to ASEAN, the rice industry needs to review the import demand of each market in ASEAN, identify markets that consume medium-quality rice at low prices, high-quality consumer markets, and fragrant rice consumer markets.

In addition, Vietnam needs to focus on trade policies with countries in the region, taking full advantage of the advantages of the Free Trade Agreements (FTAs) between ASEAN and its partners in the world.

The Philippine market in particular and the ASEAN region, in general, are considered to have a lot of room for Vietnam to grow rice exports.

Ms. Nguyen Thi Thu Thuy, Deputy Director of the Export Support Center, Department of Trade Promotion (Ministry of Industry and Trade), said that rice had been the main agricultural product of Vietnam exported to ASEAN in recent years.

Among ASEAN countries, Vietnam's rice products are mainly exported to the Philippines. Even in 2021, the Philippines was also the largest rice export market of Vietnam with an export volume of 2.45 million tons, a turnover of over US$1.25 billion, the average price was US$509.7 per ton, up 10.7% in volume, 18.5% in turnover and 7.1% in price compared to 2020.

Indonesia is also a potential market for Vietnamese rice. Mr. Pham The Cuong, Commercial Counselor of Vietnam in Indonesia, said that according to the Indonesian Ministry of Agriculture, the average rice consumption in Indonesia is about 93kg/person per year. Total demand for rice in Indonesia was about 30.1 million tons/year. However, rice production in Indonesia was inefficient, with high cost and low income, so farmers were not interested in growing rice, which led to low yield and quality. That was the main reason why Indonesia imported a relatively large amount of rice every year. The main rice supplying markets for Indonesia were Pakistan, Vietnam, Thailand and India.

In terms of specific numbers, this country's rice imports tended to be stable in the last three years; of which were 407,740 tons in 2021, worth US$184 million. In 2021 alone, Vietnam's rice exports to Indonesia reached 65,960 tons, accounting for 16.1% of Indonesia's total imports. For Vietnamese rice, Indonesia imported mainly high-quality rice.

Similarly, in the Malaysian market, Vietnamese rice has been occupying a large market share. The first secretary in charge of the Vietnam Trade Office in Malaysia, Tran Le Dung, said that Malaysia did not have good soil for rice cultivation, so agriculture mainly focused on planting coconut palm and rubber trees. With a rice-growing area of only about 0.7 million hectares, the lowest in Southeast Asia, Malaysia's rice production currently only met about 60% of domestic demand. Therefore, this country had to import about 1 million tons of rice annually to meet domestic demand and reserves.

“Currently, Vietnamese rice accounts for a large market share in the total amount of imported rice for Malaysia. Previously, the amount of Thai rice imported into Malaysia was higher than that of Vietnam, but in the past five years, Vietnamese rice was ahead of Thailand in terms of output. In the first three months of 2022, the amount of Vietnamese rice exported to Malaysia had grown by more than 102% compared to the same period last year," Dung said.

In addition to markets such as the Philippines, Malaysia and Indonesia, the Ministry of Industry and Trade said, currently Vietnamese rice is also exported to other markets in ASEAN such as Singapore, Brunei and Laos.

Paying attention to the identity of the rice brand

Although Vietnamese enterprises have many advantages and opportunities to export rice to ASEAN countries, in the future, they will face many challenges in maintaining and expanding their export market share.

Mr. Cao Xuan Thang, representative of the Vietnam Trade Office in Singapore, said that although the potential for exporting Vietnamese rice to Singapore was still very large, Singapore was a fastidious market with strict requirements for quality and very competitive prices. The exporters must pay special attention to this factor.

Focusing on an in-depth analysis of the product's brand identity, Ms. Tran Le Dung said that in Malaysia, Bernas Berhad Company was the sole importer of Vietnamese long white rice. This is also the main type of rice consumed in this country.

However, Bernas Berhad Company currently imported raw rice in containers, then returns to the country to pack and label their company’s brand. “Therefore, in the Malaysian market, consumers still mainly know the rice brand of Bernas Berhad. This is the reason why consumers don’t know about Vietnamese rice," Dung said.

To improve this situation, Ms. Tran Le Dung added that there was a form of sending samples to the stalls in some Malaysian supermarkets. Accordingly, enterprises will lose the first time introducing goods. Vietnamese enterprises should pay attention to this form of introduction because in the process of displaying and promoting the product, many people asked to buy them, the supermarket would import these goods, and other enterprises would also be interested.

The first secretary in charge of the Vietnam Trade Office in Malaysia also especially emphasized: "In the future, in order to diversify products, Vietnamese enterprises should promote the export of glutinous rice because the demand in Malaysia is also very high.”

Similarly, in the Indonesian market, Mr. Pham The Cuong said that the brand identity of Vietnamese rice was still quite fuzzy in the market, while Thai rice had many recognizable brands for consumers in Indonesian supermarkets. High-quality rice demand in Indonesia was growing, especially Vietnam's specialty rice lines such as ST24, ST25, but many big Indonesian rice importers were still unaware of these Vietnamese rice brands.

"Therefore, the promotion of Vietnam's rice brand in Indonesia needs to be strengthened and promoted further in the future," said Mr. Cuong.

By Thanh Nguyen/ Binh Minh

Related News

Quang Tri Customs makes great effort to foster imports and exports across area

Quang Tri Customs makes great effort to foster imports and exports across area

VCN – Quang Tri Customs Department determines that accompanying businesses is a requirement and responsibility to support businesses in overcoming difficulties, contributing to the socio-economic development in the area.
Removing difficulties in tax exemption and refund policies for export processing enterprises

Removing difficulties in tax exemption and refund policies for export processing enterprises

VCN - The Customs agency has received many proposals from businesses about answering and guiding policies on tax exemption, import tax and VAT refund for export processing enterprises. The General Department of Customs has responded and provided instructions for each specific case.

Latest News

Import turnover of 19 commodity groups grows over 20%

Import turnover of 19 commodity groups grows over 20%

VCN – Most of major import commodity groups have high growth turnover compared to the same period in 2023.
Vietnam owns significant advantages in attracting FDI

Vietnam owns significant advantages in attracting FDI

VCN - In an interview with Customs News, Dr. Vo Tri Thanh, Director of the Institute of Branding and Competition Strategy, believed that the global minimum tax could affect global foreign direct investment (FDI) flows and the FDI attraction policies of each country. However, "in crisis lies opportunity", Vietnam still has significant advantages in attracting FDI.
Nearly 7,000 tariff lines of AKFTA product specific rules need to be transposed

Nearly 7,000 tariff lines of AKFTA product specific rules need to be transposed

VCN - ASEAN member states and the Republic of Korea (RoK) reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Vietnam needs to cook up stronger global rice brand

Vietnam needs to cook up stronger global rice brand

Although Vietnamese rice has a foothold in several fastidious markets, there is a long way to go to make it a stronger brand globally, according to insiders.

More News

Vietnam advised to fully tap CPTPP to boost exports to Canada

Vietnam advised to fully tap CPTPP to boost exports to Canada

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has opened up numerous opportunities for Vietnam and Canada to boost two-way trade, however, tax initiatives under the trade pact have not been tapped to the fullest extent by the Vietnamese exporters, said Vietnamese Trade Counsellor in Canada Tran Thu Quynh.
ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

VCN - In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year. Ms. Nguyen Thi Thu Sac, Chairwoman of the Vietnam Association of Seafood Exporters and Producers (VASEP) shared with Customs Magazine.
Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Singapore is the largest foreign investor in VN in Q1

Singapore is the largest foreign investor in VN in Q1

The disbursed FDI rose by 7.1 per cent in the first quarter to reach $4.63 billion, a signal that the disbursement will continue the positive trend, the agency said.
Thai Binh boosts investment, trade cooperation with Germany

Thai Binh boosts investment, trade cooperation with Germany

A delegation from the northern province of Thai Binh, led by Deputy Secretary of the provincial Party Committee Nguyen Khac Than, visited several localities and business organisations in Germany from March 25 to 27, in a bid to enhance trade cooperation with and attract direct investment from the European nation.
Lifting obstacles to develop industrial parks

Lifting obstacles to develop industrial parks

VCN - Attracting investment and developing industrial zones (IZs) and economic zones (EZs) is one of the important contents to implement the policy of developing a multi-component, open, attract investment and resources from all economic sectors to develop the country. In addition to the results achieved, there still limitations that need to be removed to draw investments to develop industrial parks and economic zones, including financial problems for industrial parks.
Read More

Your care

Latest Most read
Import turnover of 19 commodity groups grows over 20%

Import turnover of 19 commodity groups grows over 20%

VCN - According to the General Department of Vietnam Customs, in the first two months of 2024, the total import turnover of the country increased by 17.1% year-on-year to US$ 54.21 billion. The result is only lower than the record increase of the same per
Vietnam owns significant advantages in attracting FDI

Vietnam owns significant advantages in attracting FDI

VCN - Vietnam's economy has passed the most dangerous and difficult period and is now more stable. Inflation, exchange rates, and interest rates have decreased, bank liquidity has stabilized, and the stock and bond markets have experienced shocks and begu
Nearly 7,000 tariff lines of AKFTA product specific rules need to be transposed

Nearly 7,000 tariff lines of AKFTA product specific rules need to be transposed

ASEAN member states and the Republic of Korea (RoK) reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules
Vietnam needs to cook up stronger global rice brand

Vietnam needs to cook up stronger global rice brand

Although Vietnamese rice has a foothold in several fastidious markets, there is a long way to go to make it a stronger brand globally, according to insiders.
Vietnam advised to fully tap CPTPP to boost exports to Canada

Vietnam advised to fully tap CPTPP to boost exports to Canada

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has opened up numerous opportunities for Vietnam and Canada to boost two-way trade, however, tax initiatives under the trade pact have not been tapped to the fullest extent by the Vietnamese exporters, said Vietnamese Trade Counsellor in Canada Tran Thu Quynh.
Mobile Version