Rice exports continue to flourish

Rice exports increase in both volume and price

The latest data from the General Department of Customs shows that the amount of rice exported in the first 5 months of 2023 reached 3.62 million tons, a significant increase compared to the same period in many previous years (the same period in 2022 was 2.767 million tons, in 2021 was 2.591 million tons, in 2019 was 2.756 million tons, in 2018 was 2.945 million tons...).

Rice exports have many bright spots in the first 5 months of 2023

The export price in the first 5 months of this year increased significantly compared to the same period many years ago, reaching 529.4 USD/ton (in 2022 it was 489 USD/ton, in 2019 it was 429.1 USD, in 2018 it was 505.1 USD). The increase in price was due to increased world demand while the Russia-Ukraine war made food prices more expensive, and the quality structure of Vietnamese rice was improved...

Rice export turnover reached the highest scale compared to the same period in many years (1.906 billion USD compared to 1.353 billion USD in 2022, 1.406 billion USD in 2021, 1.185 billion USD in 2019, 1.488 billion USD in 2018...). The increase compared to the same period of these 5 months was rarely high (up to 563 million USD) due to increased volume, increased price, and higher quality rice structure.

Mr. Pham Thai Binh, General Director of Trung An High-Tech Agriculture Joint Stock Company, said that last April, the Company also won a bid to export 11,347 tons of long-grain brown rice to the Korean market at a fairly good price, nearly 600 USD/ton.

Thus, since the beginning of the year, the company has exported more than 5,000 tons of rice to the European market; about 32,000 tons of rice to Korea; and also exported to markets such as the Middle East, Malaysia, China, etc.

Rice exported to Europe is fragrant rice with the highest price of 1,250 USD/ton, the lowest is 700 USD/ton. In the Korean market, the export price also reached 595 USD/ton. This is a quite high price in recent years.

According to the Vietnam Food Association, the prices of many types of Vietnamese rice are still higher than those of Thailand and India. Specifically, the price of 5% broken rice in Vietnam in the first weeks of June 2023 reached about 498 USD/ton, while the prices of Thai and Indian rice were 492 USD/ton and 453 USD/ton, respectively. Vietnam's 25% broken rice also recorded a price of 478 USD/ton, about 10 USD/ton higher than Thailand and 50 USD/ton higher than India.

It is noteworthy that while the price of Vietnamese rice is usually stable at a high level, the price of Thai and Indian rice often fluctuates daily. Thus, it can be seen that the price of Vietnamese rice has increased steadily in recent times, partly due to increased demand in the world, but also partly affirms that the quality and reputation of Vietnamese rice are being increasingly affirmed in many different product segments.

It is expected that in 2023, the rice output of the entire Mekong Delta region will still reach more than 24 million tons. This will be a large source of commercial rice for processing and exporting enterprises.

Facilitate rice export

In order to facilitate the promotion of rice exports, Deputy Prime Minister Le Minh Khai recently signed Decision No. 583/QD-TTg approving the Strategy for developing Vietnam's rice export market to 2030 (Strategy).

The general objective of the Strategy is to develop and diversify rice export markets with reasonable, stable, sustainable and effective scale, market structure and export product structure; consolidate traditional and key export markets and develop new and potential export markets, markets that have signed free trade agreements (FTAs); increase the market share of Vietnamese rice in export markets, especially markets of developed countries.

Linking export markets with domestic production according to the value chain, ensuring the quality and food safety of exported rice; increasing the introduction of Vietnamese rice products and rice-processed products into direct distribution channels in markets; exporting rice and rice-processed products with high quality and value, increasing value, ensuring sustainable export efficiency, affirming the reputation and brand of Vietnamese rice.

The specific goal is to increase added value, enhance the value of exported rice, reduce export volume by 2030 to about 4 million tons with a turnover equivalent to about 2.62 billion USD, reducing volume so the average export growth rate in the 2023-2025 period will decrease by about 2.4% and in the 2026-2030 period will decrease by about 3.6%.

In the period of 2023-2025, the proportion of low and medium-grade white rice accounts for no more than 15%; high-grade white rice accounts for about 20%; fragrant rice, japonica rice, and specialty rice accounts for about 40%; glutinous rice accounts for about 20%; high value-added rice products such as nutritious rice, parboiled rice, organic rice, rice flour, processed rice products, rice bran, and some other by-products from rice account for about 5%; strive for the proportion of branded exported rice to be over 20%.

In the period 2026-2030, the proportion of low and medium-grade white rice accounts for no more than 10%; high-grade white rice accounts for about 15%; fragrant rice, japonica rice, specialty rice accounts for about 45%; glutinous rice accounts for about 20%; high value-added rice products such as nutritious rice, parboiled rice, organic rice, rice flour, processed products from rice, rice bran and some other by-products from rice account for about 10%; strive for the proportion of branded exported rice to be over 40%.

In particular, strive to achieve about 25% of directly exported rice bearing the brand name Vietnam Rice by 2030. This is the key to increasing the export value of rice grains.

On the side of ministries and branches, to create maximum conditions for rice export activities, the Ministry of Industry and Trade is coordinating with ministries, branches, localities and relevant units to complete and develop a Decree amending and supplementing Decree No. 107/2018/ND-CP dated August 15, 2018 of the Government on rice export business to complete the legal corridor for the management mechanism and promote exports.

At the same time, deploy propaganda and popularize the implementation of the Strategy for developing Vietnam's rice export market to 2030. Continue to closely coordinate with ministries, branches, Vietnam Food Association and rice export traders in removing difficulties and obstacles in exporting rice to markets; especially in the context of increasing technical barriers and food hygiene and safety as at present. In particular, strengthen propaganda to raise awareness of traders to fully and clearly understand, especially the provisions of the Free Trade Agreement on pesticide residues, plant quarantine, traceability, etc.

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