According to businesses, the fact that traditional partners unexpectedly increased rice imports more than expected helped increase demand for rice in the market. This helped Vietnamese rice prices continuously increase and return to the highest position in the world.
According to the Vietnam Food Association (VFA), the price of Vietnamese rice is currently increasing in the opposite direction to that of its competitors, Thailand and Pakistan. Vietnam's 5% broken rice is currently being traded at $575 per ton, $14 per ton higher than the same type of Thai rice, and $34 per ton higher than Pakistani rice.
Vietnam's 25% broken rice also increased to 539 USD/ton, higher than the same type of rice from Thailand and Pakistan by 27 USD/ton and 22 USD/ton respectively. Compared to the world's top rice exporting countries, Vietnamese exported rice has the highest price.
This is also an impressive comeback of Vietnamese rice because a month ago, our country's rice exports were lower than those of Thailand, Pakistan, and Myanmar.
Talking to reporters , Mr. Nguyen Van Don - Director of Viet Hung Company Limited, Tien Giang - said that in the past half month, the company has continuously exported shipments to the Philippines market with a volume increase of more than 30% compared to July.
According to Mr. Don, usually the last months of the year are the time when countries increase rice imports. Notably, this year, the two largest rice import markets of Vietnam, the Philippines and Indonesia, both announced an increase in rice imports.
The Philippines increased its rice imports from 4.2 million tons to 4.5 - 4.7 million tons. Indonesia may import up to 4.3 million tons of rice instead of 3.6 million tons as announced at the beginning of the year, because the country's rice output from the beginning of the year to August was 9.5% lower than the same period last year.
“In particular, the Philippines’ reduction of rice import tax from 35% to 15% has helped businesses in this country to boldly increase imports compared to before. Meanwhile, in our country, the summer-autumn crop is about to end and we are preparing for the fall-winter crop. Both of these crops are not the main production crops of the year, so the output is not large,” said Mr. Don.
Mr. Nguyen Viet Anh - General Director of Phuong Dong Food Company Limited - said that the demand for rice in the market has always been high in recent times, and the fluctuation in rice prices is due to the influence of seasonality. Recently, Vietnamese enterprises won bids for large volumes of goods but were willing to offer low prices because the rice supply was purchased and stored from the beginning of the year, when Vietnam was in the main crop season.
At this time, when supply is limited while countries are accelerating imports to prepare for the dry season next year, rice prices are pushed up. Mr. Viet Anh predicts that Vietnam's rice exports will likely continue to be stable, and prices will increase until the end of this year if India has not yet lifted the ban on rice exports to stabilize domestic food security.
Mr. Nguyen Ngoc Nam - Chairman of the Vietnam Food Association - assessed that import demand from traditional customers of Vietnamese rice such as the Philippines, Indonesia, Ghana, Malaysia, Singapore... continues to remain high. Along with that, rice exporting enterprises are also actively expanding to new markets such as the Middle East, Africa, South America, Japan, Korea...
Statistics from the association show that in the past 7 months, Vietnam has exported over 5.1 million tons of rice, with a turnover of 3.2 billion USD, an increase of 25% in volume and 5.8% in value compared to the same period last year.
Vietnam's average rice export price is very high. At one point, Vietnam's rice export price to Brunei reached 959 USD/ton, to the US it reached 868 USD/ton, to the Netherlands it reached 857 USD/ton, to Ukraine it reached 847 USD/ton, to Iraq it reached 836 USD/ton, to Türkiye it reached 831 USD/ton...
With the increasing import momentum of partners, Mr. Nam said that Vietnam's rice export this year could reach about 8 million tons, earning more than 5 billion USD - a new record for the industry.
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