Many opportunities for breakthrough in rice export

Increase both quantity and price

Rice exports in the first quarter of 2023 continued to achieve many positive results due to the structure of exported rice varieties following the right direction, increasing the export of Vietnamese rice varieties with strengths such as fragrant rice, sticky rice, white rice, high-quality rice bringing high value, reducing the proportion of low-quality regular rice exports. Typically, in February 2023, after reaching agreements on prices and inspection criteria, NHP Provide Company, sro (Czech Republic) and Quang Tri Organic Agricultural Products Joint Stock Company, Quang Tri province completed the procedures to export the first 15 tons of Quang Tri organic rice to the European market, at a price of 1,800 USD/ton.

This shipment has opened a new step for Quang Tri organic rice, contributing to improving the lives and incomes of local organic rice farmers. Recently, the Vietnam Trade Office in Australia has connected businesses to successfully sign a contract to bring 10 containers of ST25 rice to the Republic of Vanuatu, opening up many more shipments.

Regarding the rice export situation in the first quarter of 2023, Mr. Tran Quoc Toan, Deputy Director of the Import-Export Department, Ministry of Industry and Trade, said that rice export turnover reached more than 1.85 million tons of rice with a value of 981 million USD, an increase of more than 23% in volume and 34% in turnover compared to the same period in 2022. The average export price reached 529 USD/ton, an increase of nearly 9% compared to the average level in the same period in 2022.

Notably, at many times in the months, the export price of 5% broken rice was the highest in the world, higher than the price of the same type of rice from Thailand and India. In particular, the value of rice exports grew very well in many markets such as the European Union thanks to the export of fragrant rice products, high-quality rice with high added value. This shows that the quality of Vietnamese rice is increasing, meeting the requirements of even demanding markets.

Regarding export markets, the first quarter of 2023 recorded good growth compared to the same period in 2022 in both traditional markets and potential markets (such as: Philippines increased by 44.8%; China increased by 118.8%...) and potential markets (such as: Chile increased by 25 times; Singapore increased by nearly 30%...). By region, Asia continued to be the largest regional export market in the first quarter of 2023, reaching nearly 1.57 million tons, accounting for more than 84.7% of total exports, up 52.2% over the same period in 2022.

Of which, Africa is still the second largest regional export market, reaching more than 157,000 tons, accounting for 8.5% of total rice exports, down 50.4% over the same period in 2022. Although the European market only accounts for a small proportion (about 1.7%) of Vietnam's total exports, it still reached 32,000 tons, a good growth of nearly 11% over the same period in 2022.

Take advantage of market opportunities

Commenting on the rice export market in the coming time, the Vietnam Food Association forecasts that in the last months of the year, food prices will continue to fluctuate; climate change and geopolitical conflicts will also cause countries to increase food reserves. "In general, regarding the rice export market this year, the supply is lower than demand, so the output is favorable. The problem of the rice industry this year is the production and production linkage to have rice varieties suitable to market demand," emphasized Mr. Nguyen Ngoc Nam, Chairman of the Vietnam Food Association. At the same time, Mr. Nguyen Ngoc Nam also said that enterprises in the industry are mainly small and medium-sized enterprises, so their financial resources are limited, and when the harvest season comes, they often lack capital to purchase rice. Therefore, he suggested that the State Bank of Vietnam should have credit mechanisms and policies for the rice industry.

According to experts, while the demand for imported rice is increasing, the supply of rice from the world's leading rice exporting countries such as India and Pakistan continues to be limited; Thai rice prices are increasing due to the baht's appreciation. Vietnam has the advantage of early supply from the winter-spring rice crop, stable output and quality of rice, so it is forecasted that in the short term, Vietnamese rice prices will remain at a good level. This is a factor that will help rice exporting enterprises benefit in the coming time.

However, many opinions also said that rice export activities still face many challenges when they have not really diversified the market, still showing signs of dependence on a key market such as the Philippines or China; the African market is showing signs of declining export output. Production costs are increasing due to sharp increases in prices of agricultural inputs, pushing up the purchase price of rice and commodity rice, putting pressure on rice export traders. Accordingly, market development work needs to be strengthened to ensure its commensurateness with the industry's potential.

To make the most of market opportunities for the rice industry, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that the Ministry of Industry and Trade will continue to report to the Prime Minister for approval of the rice export strategy with a vision to 2030 so that businesses and localities have a basis for synchronous implementation. Along with that, the Ministry of Industry and Trade will continue to coordinate with the Ministry of Agriculture and Rural Development in restructuring specific rice varieties, growing area codes to serve the rice import and export strategy, restructuring the export market... to better supply the market.

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