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| In September 2023, Vietnam's rice exports reached a value of 490 million USD, bringing the total export turnover in 9 months to a record high of 3.66 billion USD. (Source: Industry and Trade Newspaper) |
Despite sharp decline in world prices, Vietnamese rice prices remain "sky high"
According to the Vietnam Food Association (VFA), in the trading session on October 4, rice prices from some Asian suppliers such as Thailand and Pakistan suddenly decreased sharply.
Specifically, Thai rice prices were adjusted down by 3-4 USD/ton for all three types of 5%, 25% and 100% broken rice. After the adjustment, the price of 5% broken rice in this country is now 586 USD/ton (down 4 USD/ton), 25% broken rice is at 538 USD/ton (down 3 USD/ton), and 100% broken rice is at 461 USD/ton (down 4 USD/ton).
Pakistani rice prices have been sharply adjusted down by 5-30 USD/ton. Of which, 5% broken rice prices have fallen sharply by 30 USD/ton, down to 558 USD/ton; 25% broken rice prices have fallen by 20 USD/ton, down to 498 USD/ton and 100% broken rice prices have fallen by 5 USD/ton, down to 478 USD/ton. Previously, in the trading session on October 3, the country also adjusted down 10 USD/ton for both 5% and 25% broken rice. Thus, in just 2 days, Pakistani rice prices have fallen by 40 USD/ton.
In particular, Vietnamese rice prices remain unchanged at 613-617 USD/ton for 5% broken rice and 598-602 USD/ton for 25% broken rice.
With the current adjustment, the price of 5% broken rice from Vietnam continues to be 27 USD/ton higher than that of Thailand and 55 USD/ton higher than that of the same type of rice from Pakistan.
Explaining the reason for the adjustment of rice prices in many countries at this time, Mr. Phan Van Co, Marketing Director of Vrice Company, said that countries are reducing prices to attract customers at the end of the year, and at the same time negotiate contracts for delivery in early 2024. This reduction may also be due to countries' fear that India may reopen rice exports after October 15, thereby taking advantage of the opportunity to release inventories.
Also expressing his opinion on current rice prices, Mr. Pham Thai Binh, Chairman of the Board of Directors of Trung An High-Tech Agriculture Joint Stock Company, said: World and Vietnamese rice prices have cooled down compared to the end of August, but it will be difficult to decrease deeply because market demand is very large.
In addition, the fact that the price of rice in other countries is much lower than that of Vietnam is partly due to the high quality of Vietnamese rice. Therefore, from now until the end of the year, the price of Vietnamese rice may remain high and not decrease further.
“Recently, when Indonesia opened a bid to import 300,000 tons of rice, Vietnamese enterprises won the bid for 50,000 tons at a price of 650 USD/ton, higher than their competitors. This shows that although Vietnam's rice price is higher, it is still accepted by consumers because of its guaranteed quality and convenient transportation,” Mr. Binh analyzed.
Regarding future orders, Mr. Binh said that in October and November 2023, Trung An plans to deliver about 20,000 tons of high-quality rice to importers. Because it is high-quality rice, the price is still quite stable, in which brown rice alone is being sold at 674 USD/ton, while white rice is about 700 USD/ton.
Similarly, according to Mr. Nguyen Duy Thuan, General Director of Loc Troi, the company has signed export orders until the end of the year. At the same time, it is expected that in October or early November 2023, Loc Troi will organize sales for the whole next year.
According to an update from the Ministry of Agriculture and Rural Development, in September 2023, Vietnam's rice exports reached a value of 490 million USD, bringing the total export turnover in 9 months to a record high of 3.66 billion USD. Export output in 9 months of 2023 reached 6.6 million tons.
In the first 9 months of the year, the US is still the largest export market.
According to the Ministry of Industry and Trade, in the first 9 months of the year, in general, all industries faced difficulties in export markets due to the decrease in global demand, especially for non-essential consumer goods. Therefore, our country's export turnover in the first 9 months of 2023 to most key markets decreased, however, the level of impact on exports of each industry is different.
In the first 9 months, the US remained Vietnam's largest export market with an estimated turnover of 70.9 billion USD, down 16.8% over the same period in 2022. China was our country's second largest export market with an estimated turnover of 42.2 billion USD, up 2.1%.
Notably, exports to West Asian markets increased by 4%, estimated at 5.9 billion USD and the African market increased by 1.2%, especially the North African market increased by 9.4%... showing the efforts in diversifying markets, focusing on exploiting new markets with much potential of Vietnamese enterprises.
The Ministry of Industry and Trade stated that, in general, the bright spot in our country's export activities in the first 9 months of 2023 was: The rate of decline in exports of 100% domestic-owned enterprises (down 5.7%) was lower than that of foreign-owned enterprises (down 9.1%). In addition, in the first 9 months, there were 32 items with export turnover of over 1 billion USD, equal to the same period last year.
Many groups of agricultural products, rice, and fruits took advantage of the opportunity to open the market and increase prices to boost exports, so the growth rate was the highest among the groups (up 3.1%).
Enterprises have done well in diversifying markets, while exports to major markets of Vietnam such as the US and EU have decreased, exports to African countries, Eastern Europe, Northern Europe, and Western Asia have increased; Good implementation of solutions for exports to countries sharing borders, basic goods are not congested, even during peak seasons, contributing to increasing export turnover to the Chinese market. This is also the only export market among major export markets of Vietnam to achieve positive growth (up 2.1%), while other major markets have decreased.
Regarding goods imports, the import turnover of goods in September 2023 is estimated at 29.12 billion USD, down 0.7% compared to the previous month. In the first 9 months of 2023, the import turnover of goods is estimated at 237.99 billion USD, down 13.8% compared to the same period last year.
One of the positive points in September was that import turnover of raw materials for export production continued to increase.
Due to a sharper decrease in imports than exports, Vietnam's trade balance in September continued to have a trade surplus of about 2.29 billion USD, bringing the total trade surplus in the first 9 months of 2023 to 21.68 billion USD (in the same period last year, the trade surplus was 6.9 billion USD).
Seafood exports gradually "regain their form"
Vietnam Association of Seafood Exporters and Producers (VASEP) said that in September 2023, Vietnam's seafood exports are estimated to reach 862 million USD, equivalent to the same period in 2022. Accumulated to the end of the third quarter of 2023, seafood exports reached over 6.6 billion USD, down 22% over the same period last year...
Pangasius exports recorded revenue of nearly 1.4 billion USD from the beginning of the year to the end of September 2023, down 31% compared to the same period in 2022. Pangasius exports are gradually recovering in markets such as China, Mexico, Brazil, the Netherlands, the UK and the US...
By the end of September 2023, shrimp exports reached 2.55 billion USD, still 25% lower than the same period in 2022. However, export results in recent months have shown signs of recovery compared to previous months.
The two main markets, the US and China, have begun to increase demand and exports to these two powers have recorded positive growth in the past two months. Some key markets in the CPTPP bloc such as Japan, Australia, and Canada are also increasing shrimp imports from Vietnam.
According to VASEP, the decline in shrimp exports this year is not only a problem for Vietnam, but also a common situation for the shrimp industry worldwide.
Last week, businesses and experts from many Asian countries attended the Aquaculture Roundtable series held in Bali, Indonesia, where businesses reflected on the current situation of the shrimp farming industry in Asia, with shrimp prices at a 10-year low due to a global oversupply.
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| In September 2023, Vietnam's seafood exports are estimated to reach 862 million USD, equivalent to the same period in 2022. (Source: VnEconomy) |
The industry session addressed current issues facing producers, including low prices and high production costs in the current shrimp crisis and potential markets for Asian shrimp domestically and regionally.
Technical presentations highlighted current challenges in the shrimp supply chain and proposed solutions to these issues. A key solution was to reduce the cost of shrimp production to cope with the sharp decline in shrimp prices. Feed plays a key role in sustainable shrimp production, with a focus on nutritional approaches to achieve optimal production performance, including opportunities to use enzymes and functional additives to improve nutrient digestibility, disease resistance and reduce feed costs.
Similar to shrimp, Vietnam's tuna exports also show signs of improvement, with September 2023 sales equal to the same period in 2022. However, the continuous decline in the first 9 months of the year caused the cumulative tuna exports to still decrease by 23% to reach 623 million USD.
By the end of September 2023, exports to the top 3 largest markets, the US, China and Japan, all exceeded the 1 billion USD mark. Of which, the US still holds the No. 1 position with nearly 1.2 billion USD, 33% lower than the same period in 2022. The Chinese market brought in 1.15 billion USD in foreign currency for Vietnamese seafood in the first 3 quarters of the year, down 15%, while Japan imported seafood from Vietnam with a value of nearly 1.1 billion USD, down 14% compared to the same period last year.
Vietnam owns a group of products that are "making a fortune" from East to West.
According to preliminary statistics from the General Department of Customs, footwear is one of Vietnam's key billion-dollar export items. Specifically, in August 2023, exports of this item reached more than 1.7 billion USD, down slightly by 4% compared to July 2023. In the first 8 months of the year, footwear exports of all kinds earned more than 13.58 billion USD, down 18.4% over the same period in 2022, ranking 5th in terms of export value in the first 8 months of 2023.
Footwear is an essential consumer product globally. In the first 8 months of the year, the two main markets, the US and China, both recorded export values of over 1 billion USD. In terms of market, the US is the largest market for Vietnamese footwear with over 670 million USD in August, down 10.2% compared to the previous month. In the first 8 months of the year, exports to the US earned over 4.7 billion USD, down 32% but accounting for 35.6% of the market share.
Ranked second is the Chinese market with more than 219 million USD in turnover in August, an increase of 34.85% compared to July 2023. In the first 8 months of the year, footwear exports to the billion-people market earned 1.24 billion USD, an increase of 10.3% over the same period in 2022, accounting for 9.3% of the export proportion of Vietnam's footwear industry.
The top 5 largest markets also include Belgium, Japan and the Netherlands with proportions of 6%; 5.4% and 4.6% respectively.
In 2022, footwear exports of all kinds earned more than 23.8 billion USD, a sharp increase of 34.6% compared to 2022.
Vietnam's footwear products are ranked second in the world in terms of export, just after China, and there are also some quite good "Made in Vietnam" brands. Vietnam is considered a prestigious market in the production of leather and footwear products, especially sports shoes according to major brands.
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