Experts predict that rice exports will improve by the end of this year as demand for imported rice increases from traditional markets.
Rice production in the first 6 months of the year was relatively favorable, farmers had high income, with an average profit of 20 - 40 million VND/ha.
To date, the country has harvested nearly 400,000 hectares of summer-autumn rice, with an estimated yield of 6.2 tons/ha. Abundant supply, while the world's demand for rice imports is increasing, has led many businesses to predict that rice exports will pick up by the end of this year.
Opportunity for rice export to flourish
According to the Vietnam Food Association (VFA) on July 23, 2024, the export price of 100% broken rice was at 448 USD/ton, down 12 USD/ton; 5% broken rice remained stable at 559 USD/ton, down 1 USD; 25% broken rice was at 537 USD/ton. Although the export price of rice was lower than the price at the beginning of the year, it still increased by about 30-35% compared to the same period last year.
Currently, the Philippines, Indonesia, Malaysia and China are still the main markets for Vietnamese rice. Our country is actively expanding to new markets such as the Middle East, Africa, South America, Korea and Japan.
According to data from the Ministry of Agriculture and Rural Development, in the first 6 months of 2024, Vietnam exported about 4 million tons of rice, earning more than 2 billion USD. This figure increased by about 10% compared to the same period in 2023, demonstrating strong and stable growth of the rice export industry. This achievement was thanks to the continuous efforts of the export enterprises, government support policies and improvements in production and processing technology.
According to the General Department of Customs, in the first half of July 2024, Vietnam exported 290,035 tons of rice worth 177 million USD, up 15% in volume and 30% in value over the same period last year. The average rice export price also increased by 12% over the same period, reaching 612.3 USD/ton.
According to the assessment, the opportunity for rice export The second half of the year saw a huge boost. According to Mr. Phung Van Thanh, Trade Counselor, Vietnam Trade Office in the Philippines, the Philippines' rice imports increased sharply in the first half of this year. In the first 6 months of 2024, the Philippines' total rice imports were 2.32 million tons, an increase of 24.7% over the same period in 2023.
Of the 2.32 million tons of imported rice, 1.72 million tons came from Vietnam. Thus, Vietnam continues to be the largest source of imported rice for the Philippines, accounting for 74% of the country's total rice imports. Although the proportion of Vietnamese rice has decreased compared to 2023, it is still overwhelming compared to other sources. Right after Vietnam is Thailand with 352,331 tons, accounting for 15%.
Focus on quality to compete on price
Building a brand for Vietnamese rice is necessary to create a mark and affirm its position in the international market. Enterprises need to focus on improving product quality, ensuring compliance with international standards on food safety and environmental protection. At the same time, it is necessary to step up promotional and marketing activities to introduce Vietnamese rice products to global consumers.
One of the key factors helping Vietnamese rice increasingly dominate the international market is product quality. A representative of Ngoc Thien Phu Rice Import-Export Joint Stock Company in An Giang province said: " We are investing heavily in processing and packaging technology to meet the increasingly stringent quality standards of the international market. This is a key factor to help increase added value and compete more effectively."
The rice export industry not only competes with major producing countries such as Thailand and India but also faces increased production from emerging countries. To maintain its position, Vietnam needs to continue to improve product quality, reduce production costs and improve processing processes. Mr. Pham Thai Binh, Director of Trung An High-Tech Agriculture Joint Stock Company, informed: " We are applying many advanced technical measures to improve rice productivity and quality and reduce production costs. This is the only way for us to compete effectively in the international market."
Thanks to the application of advanced technologies and modern production processes, Vietnamese rice not only ensures quality but also retains its characteristic flavor, creating a difference in the market.
Vietnamese rice exporters are also actively expanding to new markets such as Africa and the Middle East. Mr. Nguyen Ngoc Nam, Chairman of the Vietnam Food Association, commented: "This growth reflects that the demand for rice in the world market is still very large. Traditional markets such as China, the Philippines, and Indonesia are still Vietnam's main import partners. Besides, we are actively expanding to new markets such as Africa and the Middle East."
Market diversification not only helps reduce risks due to dependence on a few large markets but also opens up many new growth opportunities for the rice export industry.
Director of the Department of Crop Production (Ministry of Agriculture and Rural Development) Nguyen Nhu Cuong said that India's lifting of the rice export ban will have a strong impact on exporting countries, including Vietnam. Accordingly, the price and volume of Vietnamese rice exports will be affected, so rice exporting enterprises need to proactively find solutions when the Indian market resumes exports. In addition, domestic rice production is also facing salinity intrusion.
Step by step to overcome difficulties
Despite its achievements, Vietnam’s rice export industry still faces many challenges. One of the biggest challenges facing the rice export industry today is the ever-increasing logistics costs. Transporting rice from production areas to seaports and then exporting it abroad requires an efficient logistics system.
However, Vietnam’s infrastructure and logistics services are still limited, making it difficult to export. To solve this problem, there needs to be strong investment from both the government and businesses in logistics infrastructure, improving transportation processes and enhancing service quality.
In addition, international cooperation is also an important factor in helping Vietnam's rice export industry expand its market and access new technologies. Enterprises need to actively participate in free trade agreements, seek strategic partners and establish sustainable cooperative relationships with international partners. This not only helps to increase competitiveness but also opens up many new development opportunities.
Along with that, the government needs to have timely and effective support policies to create favorable conditions for rice exporting enterprises. These policies include improving infrastructure, financial support, reducing taxes and fees, facilitating loans and investment in technology. At the same time, it is necessary to strengthen management and supervision to ensure a healthy and transparent business environment.
Rice export is a key economic sector of Vietnam, contributing greatly to the growth and development of the agricultural sector in particular and the economy in general. With the right efforts and development orientation, Vietnam's rice export industry will continue to reap many successes in the coming time.
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