2 months, rice export increased by nearly 50%

Rice exports still worry about unfair competition

According to data from the Ministry of Agriculture and Rural Development, in the first two months of 2024, rice exports reached 708 million USD, an increase of 49.8%; rice export prices increased by 32.2% over the same period.

Previously, according to the latest data from the General Department of Customs, from the beginning of the year to February 15, 2024, rice exports reached 663.2 thousand tons, earning nearly 466.6 million USD, up 14.4 and 53.1% respectively over the same period last year.

Rice exports in the first two months of 2024 increased by nearly 50% (Illustration photo)

Ms. Bui Thi Thanh Tam - Chairwoman of the Board of Members of the Northern Food Corporation informed that last January, Vietnam participated in a bidding in Indonesia with a very large quantity, the total invited quantity was 500,000 tons, but Vietnamese exporters won nearly 400,000 tons at high prices.

However, rice exports are currently facing difficulties due to falling prices, some countries are not offering Vietnamese rice, and some traders have abandoned their contracts to buy from farmers. “The corporation has offered to some importers, but they said ‘we will study further and can negotiate later’. The world market price is currently being adjusted,” Ms. Tam shared.

According to Mr. Nguyen Van Don - Chairman of the Board of Members and Director of Viet Hung Company, after Tet, the rice harvest in the Mekong Delta region took place vigorously, so the rice price decreased slightly. Currently, the rice price has increased again, the rice market continues to be vibrant.

According to experts, due to the effect of last January being the month of Tet, this year rice exports "broke through", but the upward trend is still continuing, especially in terms of price. The outlook for rice exports in 2024 continues to be positive as major markets show many signs of increased imports. However, localities and businesses still express concerns about market information, how to closely follow to take advantage of opportunities.

Mr. Nguyen Ngoc Nam - Chairman of the Vietnam Food Association said that the country's rice output in 2024 is expected to remain at the same level as in 2023 under optimistic weather conditions. However, the volume of rice inventory carried over to 2024 will decrease sharply, so it is necessary to closely balance the rice output of each crop with domestic consumption demand.

Rice exports are expected to continue to be buoyant as demand from major Southeast Asian markets such as Indonesia, the Philippines, Malaysia, China and Africa increases due to concerns that the hot El Nino weather will last until mid-2024. Domestic rice prices are also expected to remain stable at a high level and maintain an upward trend.

However, Mr. Nguyen Ngoc Nam recommended that the Ministry of Industry and Trade should strengthen the work of information on export data to make the work of balancing supply and demand of rice products of relevant parties more convenient.

From a local perspective, Mr. Ha Vu Son - Director of the Department of Industry and Trade of Can Tho said that there are currently some businesses offering prices lower than the market, for example, one business offers 900 USD/ton for the same type of rice, while another business only offers 800 USD, leading to unfair competition. Mr. Ha Vu Son also recommended that the Ministry of Industry and Trade provide a quick information channel on the rice import needs of countries, and proactively negotiate exports in the present and the future.

Need to take advantage of market opportunities to boost rice exports

Currently, Vietnam's rice output accounts for about 15 - 18% of the world's total rice export volume. In the context of a market with intertwined opportunities and challenges, in order to continue implementing the tasks assigned by the Government and the Prime Minister, ensuring management goals, taking advantage of opportunities to continue exporting well to traditional markets and approaching and increasing market share in countries with great potential, contributing to boosting rice exports in the coming time, Mr. Tran Quoc Toan - Deputy Director of the Import-Export Department said that the Ministry of Industry and Trade will urgently review and complete the Decree amending and supplementing Decree No. 107/2018/ND-CP of the Government on rice export business to perfect the legal framework for the rice export mechanism, creating a transparent, fair and favorable business environment for rice exporters.

In addition, it will coordinate with the Ministry of Foreign Affairs and the Ministry of Agriculture and Rural Development to proactively negotiate to diversify export markets, taking advantage of opportunities to capture new and potential markets to increase the competitiveness of the Vietnamese rice industry.

Continue to closely monitor the world rice trade market situation, the movements of major producing and exporting countries, promptly inform ministries, branches, Vietnam Food Association, rice export traders to proactively regulate rice production and export business activities.

Continue to flexibly organize and implement trade promotion activities, combining traditional and online forms to strengthen cooperation in rice trade with traditional markets such as Indonesia, Africa, China, etc.; exploit niche markets with fragrant rice and high-quality rice that we have penetrated in recent years such as the EU, Korea, the United States, North America, etc. Organize well the implementation of the task of implementing the Strategy for developing Vietnam's rice export market until 2030.

Regarding capacity building and supply chain development, Mr. Tran Quoc Toan said that the Ministry of Industry and Trade will guide and support rice export traders to improve production and business capacity, market information, negotiation, signing and implementation of export contracts, and handling international trade disputes.

Continue to coordinate with relevant ministries, branches and agencies to grasp information; support localities and traders to synchronously improve the rice supply chain towards sustainability; apply technology to ensure output, improve the quality and value of rice products.

Continue to coordinate with the Vietnam Food Association to strengthen propaganda to raise traders' awareness of regulations in new-generation free trade agreements and bilateral agreements to make the most of the tariff quotas for Vietnam.

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