Vietnam still has room to increase rice exports

Rice exporters cautiously sign new contracts

Rice export continued to improve as the market has recently become more active and prices have also improved. Vietnam has risen to become the country with the highest selling price today, surpassing both Thailand and India. Vietnam's 5% broken rice, light fragrant long grain rice and high-end rice all have slightly higher prices than other countries, by a few USD per ton. However, businesses are still cautious in signing new contracts.

Every year, A An Food Joint Stock Company exports about 500,000 tons of rice. This year's target is increased to 700,000 tons. With the current good market signals, it is expected that this target will be achieved. In recent days, the increase in rice prices has made businesses even more excited.

Vietnam's 5% broken rice is currently priced at $397 - $410 per ton. Lightly fragrant long grain rice is priced at $520 - $530 per ton. High-end rice is priced at $1,200 per ton. At this price, it is already the highest compared to similar rice from other countries by several dollars per ton.

Rice exports continue to flourish as the market has recently become more active and prices have also improved. Illustrative photo.

In the first quarter of 2025, the country's rice exports will reach over 2.3 million tons, with an average price of 522 USD/ton. Although not equal to the price in the same period in 2024, this is a fairly high level in the context of strong adjustments in the world rice market.

The company has temporarily stocked enough to fulfill previously signed contracts. The remaining will wait for the market to improve before signing more because if sold in a hurry, the desired profit will not be achieved.

Mr. Nguyen Van Thanh - Director of Phuoc Thanh IV Company, Vinh Long province shared: "The price of rice is quite profitable but it is not very good. Hopefully in the near future, the price will increase by another 10 - 50 USD/ton, which would be better."

"The winter-spring crop is basically over. The summer-autumn crop will not arrive until July, so buyers really need this gap, so I think the price will stabilize," said Mr. Do Ha Nam - Chairman of the Vietnam Food Association (VFA).

Improving product quality and promoting the high-end rice segment is the strategy of enterprises. Expanding the market also helps increase initiative and enhance value. On the other hand, traditional customers always have high and stable demand for Vietnamese rice. This is also an advantage to help the rice industry continue to develop in the future.

Room for Vietnamese rice to expand exports

According to the Vietnam Food Association, although the price of Vietnam's standard 5% broken rice in the first quarter fell below 400 USD/ton, and the price of 25% broken rice was even lower, the average export price of rice still reached 522 USD/ton, thanks to fragrant rice and specialty rice accounting for a high proportion of exports.

Vietnamese rice is in the upper-middle segment and is aiming for the higher segment, with value and brand. In this segment, demand is very high, especially in Japan, the US and the EU. For example, the unprecedented rice price fever in Japan has lasted since the end of last year and shows no signs of cooling down.

Vietnam still has room to increase rice exports. Illustrative photo.

However, the amount of high-quality rice exported from Vietnam to the US is only 30,000 tons/year and to the Japanese market is much less. This is a huge potential for Vietnam to expand the production and export of specialty rice and fragrant rice.

Assessing the possibility of rice exports in the coming months, experts in the rice industry said that Vietnam still has room to increase exports, especially in large and nearby markets.

VFA forecasts that rice exports this year may only reach 7.5 million tons, down from last year's record of more than 9 million tons, but if the amount of ST24, ST25, and high-quality fragrant rice can be increased, foreign currency earnings will still be positive.

Source: https://baoquangninh.vn/viet-nam-con-du-dia-de-tang-xuat-khau-gao-3354950.html