In September 2023, which market will Vietnam sell the most rice to?

September, name the Indonesian market

Preliminary statistics from the General Department of Customs show that in September 2023, Vietnam exported more than 605,400 tons of rice, earning 377.9 million USD, a slight increase of 3.8% in volume but a sharp increase of 37.3% in value compared to the same period last year.

In September 2023, Vietnam exported 166 thousand tons of rice to the Indonesian market, reaching 101.4 million USD, 53 times higher than in September 2022. Meanwhile, the export value to the Philippines and China was 62.7 million USD and 43.7 million USD, respectively. Thus, Indonesia officially surpassed the Philippines and China, becoming the largest customer of Vietnamese rice in September.

Notably, the Vietnam Trade Office in Indonesia (Ministry of Industry and Trade) has just informed that Mr. Arief Prasetyo Adi - Acting Minister of Agriculture of Indonesia confirmed to the press that Indonesia has chosen Vietnam and Thailand as the two main suppliers for the purchase of 1.5 million tons of rice in the coming time.

On October 10, Mr. Mokhamad Suyamto - Director of Supply Chain and Public Services of the Indonesian Logistics Agency (Preum Bulog) also confirmed that Preum Bulog will import 1.5 million tons of rice from Vietnam and Thailand.

All necessary permits for the import of 1.5 million tonnes of rice have been issued by the relevant Indonesian authorities, and the imports will be carried out from the end of October.

Previously, the Vietnam Trade Office in Indonesia (Ministry of Industry and Trade) said that on October 8, Indonesian President Joko Widodo announced that the amount of rice harvested in the last 6 months of 2023 was not enough to meet domestic rice demand. Therefore, the government of this country needs an additional 1.5 million tons of rice reserves until the end of 2023.

Indonesia must increase rice imports because its agricultural production is strongly affected by the El Nino phenomenon, and the Government also needs more rice to stabilize market rice prices.

The Indonesian Food Agency (Bulog) informed that as of September 22, the amount of rice in its warehouse was more than 1.7 million tons, including 1.65 million tons of national reserve rice and nearly 64,000 tons of commercial rice.

Rice prices in Indonesia have increased sharply in recent times. On October 8 alone, the retail price of rice was Rp 13,200/kg (1 USD = Rp 15,400) for medium-grade rice; Rp 14,920/kg for high-quality rice.

Meanwhile, the highest retail rice price as regulated by the Indonesian Government is Rp 10,900-11,800/kg for medium-grade rice and Rp 13,900-14,800/kg for high-quality rice.

Indonesian rice price inflation in September increased by 18.4% compared to the same period last year, the highest level since 2014. Of which, rice prices in September increased by 5.6% compared to August and reached the highest level since February 2018.

To make the most of this opportunity, the Vietnam Trade Office in Indonesia recommends that rice exporting enterprises follow the instructions of the Ministry of Industry and Trade on exporting rice to the Indonesian market.

Specifically, rice exporters need to closely monitor the market situation and assess opportunities and risks to develop a trading plan. Signing appropriate contracts ensures export efficiency and benefits for farmers.

In addition, businesses also need to pay attention to plans to prevent risks related to price, payment and delivery in the context of the world trade situation being affected by many factors.

Market opportunities from now until the end of the year are still very bright.

According to the General Department of Customs, by the end of September 2023, Vietnam exported nearly 6.42 million tons of rice, worth 3.54 billion USD. Compared to the same period last year, rice exports increased by 19.5% in volume and 35.9% in value.

Regarding export markets, the Philippines remains the largest customer of Vietnamese rice. In the first 9 months of 2023, rice exports to this market reached 1.29 billion USD, up 13% over the same period in 2022. China is Vietnam's second largest rice export market with a turnover of 495.8 million USD, up sharply by 55.2%.

Indonesia ranked third with rice exports to this market reaching 462.6 million USD, up 1,796% over the same period last year. In addition, Vietnam's rice exports to Türkiye and Chile saw a sharp increase, respectively 10,608% and 2,291%.

According to information from the Ministry of Agriculture and Rural Development, the average export price of rice in our country in the first 9 months of 2023 reached 553 USD/ton, an increase of 14% over the same period in 2022, at times reaching nearly 650 USD/ton.

Enterprises in the industry believe that the rice export market will remain bright in the final months of the year. Accordingly, in addition to the Indonesian market, the Philippine market - the country that imports the most Vietnamese rice - has increased purchases again after nearly a month of suspension due to the ceiling price order on domestic rice. Meanwhile, the Chinese market is expected to increase purchases of glutinous rice to serve the demand for the year-end Tet holiday.

With an export price of about 580 - 600 USD/ton, Mr. Nguyen Van Don - Director of Viet Hung Company Limited (Tien Giang) - commented that rice exports in 2023 are expected to bring in about 5 billion USD. This figure is much higher than previous years.

According to the Ministry of Agriculture and Rural Development, due to the increase in the autumn-winter rice area, this year our country can export about 7.8 million tons of rice. Thus, in the remaining 3 months of 2023, our country will have about 1.38 million tons of rice of all kinds for export.

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