Ministry of Industry and Trade seeks solutions to increase rice exports to China

The Ministry of Industry and Trade will organize a delegation to promote rice trade to the Chinese market to increase rice export turnover to this market.

According to the latest report of Ministry of Industry and Trade, in the first 10 months of 2024, rice export turnover reached 7.7 million tons, worth 4.8 billion USD, up 10.2% in volume and 23.5% in value over the same period last year. The Ministry of Industry and Trade stated that due to the benefit of high prices, rice export turnover increased by double digits over the same period last year. Rice export is a bright spot in the country's agricultural export picture.

Rice exports are a bright spot in the economic picture.

However, currently, the turnover rice export Rice exports to China are declining. According to the General Department of Customs, in the past 9 months, rice exports to China reached only 241 thousand tons, earning 141.2 million USD. Compared to the same period last year, rice exports to this market decreased sharply by 72%.

Previous statistics show that for many years, China has always been a major customer of Vietnamese rice. In 2012, this country of one billion people became the largest customer, accounting for 27.5% of the total value of our country's rice exports.

During the period 2017 - 2022, China's rice imports from Vietnam recorded relatively large fluctuations. In 2017 alone, China imported up to 1 billion USD of rice products from Vietnam, but by 2019, the import turnover only reached more than 240 million USD and recovered in the period 2020 and 2021 but has tended to decrease in the past two years.

Rice exports to China tend to decrease, one of the reasons being that China limits the number of rice enterprises allowed to export to this country. Currently, China only allows 21 enterprises to export rice to this market out of a total of about 200 licensed Vietnamese rice enterprises.

Besides, there is fierce competition in the Chinese market. Currently, rice products available in the Chinese market are of relatively high quality, besides the fact that exporting countries pay great attention to packaging, especially Thai rice.

To promote rice exports to China, implementing the National Program on Trade Promotion approved by the Minister of Industry and Trade in Decision No. 3444/QD-BCT dated December 31, 2023, from December 2 to December 6, 2024, the Trade Promotion Department coordinated with the Import-Export Department - Ministry of Industry and Trade to organize a Trade Delegation for rice products in Guangdong Province and Hunan Province - China.

It is expected that 10 - 18 enterprises operating in the fields of rice trading, production and export, with potential and reputation, will participate in the rice trade promotion delegation to China.

The delegation will directly introduce Vietnam's rice export brands and products to importers and consumers in the Chinese market; create opportunities for businesses of both sides to directly contact each other to sign business cooperation agreements through the following activities: Organizing B2B seminars on rice trade between Vietnamese exporting enterprises and importing enterprises in China; Working at some factory, warehouse, transportation systems and some large rice importing enterprises in China; Learning about the system and methods of distribution, retail and consumption of Chinese consumers, thereby building a method of direct penetration and increasing market share in the above market.

The delegation will also work with the relevant management agencies and business associations to learn about policy orientations, needs, consumer tastes, and regulations on rice import and export, thereby supporting Vietnamese businesses to grasp information, proactively plan their work, and meet market requirements.

Previously, Mr. Tran Thanh Hai - Deputy Director of the Import-Export Department - Ministry of Industry and Trade said that rice is still an essential commodity in the world as well as in Vietnam, so in the coming time, there will be great opportunities for production and business in this field. It is necessary for export enterprises to increase their adaptability and flexibility to effectively take advantage of these opportunities.

In the current context, the Ministry of Industry and Trade recommends that rice exporting enterprises closely monitor the world and domestic rice markets, and make careful and certain calculations when offering prices for export shipments to ensure business efficiency and maintain the reputation of Vietnamese rice.

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