AsemconnectVietnam - Việt Nam has bright prospects for rice exports in the second half of this year due to increasing demand for rice in the world market, according to the Minister of Agriculture and Rural Development (MARD).

At a meeting on the situation of rice exports in the first half of the year held by MARD on Thursday in Hà Nội, Lê Thanh Hòa, deputy director of MARD's Department of Quality, Processing and Market Development said the rice production industry is predicted to have a positive outlook in the last six months of the year because many Asian countries producing rice face a risk of falling output due to the impact of El Nino. That will push the demand as well as the price up on the global rice market.
Vietnam remains biggest rice provider of Philippines
Vietnam remained the biggest rice provider of the Philippines in the first five months of this year with turnover of 772.4 USD million, surging 31.1% year-on-year.
During January-May, the Philippines imported 1.5 million tonnes of rice from Vietnam, accounting for nearly 90% of its total imported rice, according to the Asia-Africa Market Department under the Ministry of Industry and Trade, citing data from the Philippine Bureau of Statistics.
This was also the record level of Vietnam's rice exports to the Philippines so far.
In the first five months, Vietnam exported 3.6 million tonnes of rice, with the Philippines accounting for 42.3% of the total.
Minister urges seizing opportunities to boost rice export
The chance has come and doesn’t wait any, so it is necessary seize it to step up rice export, Minister of Agriculture and Rural Development Le Minh Hoan told this ministry’s meeting on July 6.
Le Thanh Hoa, Deputy Director of the ministry’s Department of Quality, Processing and Market Development, said the rice sector’s outlook is assessed as relatively positive for the second half of 2023 since many other rice producers in Asia are facing risks of declined output due to El Nino impacts, which will boost rice demand and prices in the global market.
Vietnam exported 4.27 million tonnes of rice worth 2.3 billion USD in the first six months, rising 22.2% in volume and 34.7% in value year on year. Export prices averaged 539 USD per tonne, up 10.2% from a year earlier, data from the department show.
EU considered potential destination for Vietnamese rice
The EU - Vietnam Free Trade Agreement (EVFTA) has opened up unprecedentedly big opportunities for Vietnamese rice export. Thanks to preferential tariffs, the shipments of fragrant and high-quality rice to the EU have reaped encouraging results.
The Ministry of Industry and Trade said though rice export to the EU is not big in volume compared to other regional markets, it posts high added value since the 27 EU members consume mainly fragrant and high-quality grain from Vietnam. Domestic firms have made full use of the rice quota entitled to an import duty of 0% to boost shipments to the bloc, reported the Cong Thuong (Industry & Trade) newspaper.
In 2022, the country saw a sharp increase in rice export to the EU to 94,510 tonnes, surpassing the annual quota of 80,000 tonnes granted to Vietnam under the EVFTA. Prices of the produce sold to the EU stood at 688 USD per tonne, 41.4% higher than the general export price of 486 USD per tonne of Vietnamese rice, statistics show.
This indicates the quality of Vietnamese rice has been improved and satisfied strict requirements from demanding markets, and that enterprises have been making good use of the EVFTA.
Compiled by T.Huong
Source: Vitic