In the first 11 months of 2024, rice exports reached nearly 8.5 million tons with 5.31 billion USD, up 10.6% in volume and 22.4% in value over the same period in 2023.
The Philippines is Vietnam's largest rice consumer market.
According to the report of the Ministry of Agriculture and Rural Development, the volume and value of rice exports in November are estimated at 700,000 tons with 444.9 million USD, bringing the total volume and value of rice exports in 11 months to nearly 8.5 million tons with 5.31 billion USD, up 10.6% in volume and 22.4% in value over the same period in 2023. This is the first rice export output and value achieved by the agricultural sector.
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| Rice exports in 11 months reached over 5.3 billion USD. (Photo: NH) |
The Philippines is Vietnam's largest rice consumer market with a market share of 46.1%. Indonesia and Malaysia are the next two largest markets with market shares of 13.5% and 8.2%, respectively.
Among the 15 largest rice export markets, the export value of rice increased the most in the Malaysian market with an increase of 2.2 times; the market with the sharpest decrease in export value was China with a decrease of 71.3%. Thus, after reaching a record export turnover in 2023, Vietnam's rice exports this year continued to increase strongly and exceeded the 5 billion USD mark, this is the first time Vietnam's rice exports have exceeded the 5 billion USD mark in one year.
Vietnam’s rice exports surpassed the $5 billion mark for the first time, mainly due to high export prices. In the first three quarters of the year, the average export price of rice was $626 per ton, up 13.4% year-on-year, or $74 per ton.
Vietnam's high rice export prices are not only affected by world rice prices, but also by changes in the types of exported rice. Mr. Do Ha Nam - Vice President of the Vietnam Food Association - said that Vietnam is gradually creating a difference in rice production and export compared to other exporting countries, by focusing on fragrant rice and high-quality rice, while sharply reducing the production and export of medium and low-quality rice. Thereby, the rice industry has created a separate export price level for Vietnamese rice.
The price difference of Vietnamese rice has been shown many times when it is at the highest level among the leading exporting countries and at many times is significantly higher than the same type of rice from Thailand.
Since India removed the minimum export price for non-basmati rice on October 22, the export price of rice in the world market has decreased significantly. Although it has decreased as sharply as that of other exporting countries, the price of Vietnamese rice is still the highest among the major exporting countries.
Specifically, on December 3, the price of 5% broken rice from Vietnam was 517 USD/ton, while the same type of rice from Thailand was 499 USD/ton, India was 451 USD/ton and Pakistan was 453 USD/ton. Thus, among the 4 largest rice exporting countries in the world, only 5% broken rice from Vietnam is still at over 500 USD/ton.
Promote to the billion-people market
Notably, the value of Vietnamese rice exports to China from 2012 to 2016 remained relatively stable. In 2017, rice exports to this market increased dramatically, reaching nearly 1.03 billion USD, accounting for nearly 40% of the total rice export value. However, the export turnover of this item to the Chinese market in 2019 unexpectedly dropped to 240.3 million USD, but quickly recovered in the following years.
In 2023, rice exports to China will rank third, accounting for 11.3% of the country's total rice exports, reaching 918,000 tons with a value of 530.6 million USD, up 10.08% in volume and 22.7% in value compared to 2022. With this output, China is behind the Philippines and Indonesia. In 2012, China became the largest market, accounting for 27.5% of Vietnam's total rice export value.
According to the Vietnam Food Association (VFA) and businesses, China used to be the largest market for Vietnamese rice, but since the beginning of 2024, the export "performance" has not been maintained as before. Data from the General Department of Customs shows that in the first 9 months of 2024, rice exports to China only reached 241,000 tons, earning 141.2 million USD. Compared to the same period last year, rice exports to this market decreased by 72%.
Implementing the National Trade Promotion Program, from December 2 to 6, 2024, the Trade Promotion Department coordinated with the Import-Export Department (Ministry of Industry and Trade) to organize a trade delegation for rice products in Guangdong and Hunan provinces (China).
The delegation of 10-18 enterprises will work at a number of factories, warehouses, transportation and some large rice importing enterprises in China; learn about the system and methods of distribution, retail and consumption of Chinese consumers, thereby building a method of direct penetration and increasing market share in this market.
Rice trade promotion activities aim to help Vietnamese businesses grasp information about policies and market demand to increase cooperation opportunities and seize export opportunities after 2024, when exports face a sharp decline. Through trade promotion activities, the Ministry of Industry and Trade hopes to support businesses to improve quality and take advantage of opportunities to restore their position in this potential market.
Rice exporters are also advised to take advantage of opportunities from existing Free Trade Agreements (FTAs) with China to accelerate exports and take advantage of tariff incentives.
Rice has become the second agricultural product of Vietnam to reach an export value of over 5 billion USD after vegetables and fruits. In 2023, vegetable and fruit exports exceeded 5 billion USD for the first time, in 11 months of 2024 they exceeded 6.6 billion USD and are aiming for a turnover of 7 billion USD by the end of the year. Following rice, it is likely that by the end of this year, Vietnam's coffee exports will also reach the 5 billion USD mark for the first time. In general, of Vietnam's agricultural export products, up to now, there have been 3 items with an export value of 5 billion USD or more, namely wooden products, vegetables and fruits and rice. With the achieved results, Mr. Phung Duc Tien - Deputy Minister of Agriculture and Rural Development commented that the export turnover of agricultural, forestry and fishery products for the whole year of 2024 and is confident to reach a new record of 60 billion USD...
Source: https://congthuong.vn/xuat-khau-gao-11-thang-dat-hon-53-ty-usd-362416.html
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