AsemconnectVietnam - Vietnam exported a record volume of nearly 6 million tonnes of rice in the first eight months of this year, up 20% year on year, according to the General Department of Vietnam Customs.

The department reported that the largest importers of Vietnamese rice in the January-August period included the Philippines, China, Indonesia and Ghana, with an over 15-fold increase in some markets.
In the rest of the year, Vietnam is forecast to enjoy a rise in rice export thanks to a large number of orders from many new markets. However, exporters are worried about a shortage of input materials due to this surge in global demand.
According to economists, the upturn will be seen in both domestic and world rice prices. Although Vietnam is one of the leading rice exporters, the country should pay attention to addressing current and long-term challenges, including those in food security and promoting the rice sector's advantages, advised experts.
According to the Deputy Minister of Agriculture and Rural Development Hoang Trung, Vietnam maintains 7.1 million hectares of rice farm each year with an output of 43-43.5 million tonnes. The area will expand as conditions are good for prices in the market, he said.
Hau Giang to host international rice festival
The first international rice festival will be held in the Mekong Delta province of Hau Giang in late 2023, according to Deputy Minister of Agriculture and Rural Development Hoang Trung.
At a working session with Hau Giang provincial People’s Committee on preparation for the festival on August 30, he urged the local authorities to soon decide the time to organise the festival, adding that after consulting opinions of specialised agencies, the Ministry of Agriculture and Rural Development suggested that the festival should be held from December 12 to 15.
The event aims to promote the development of high-quality rice production as well as its value chain towards organic rice production, ensuring food security and climate change adaptation in the Mekong Delta.
It is also intended to support businesses and farmers to operate effectively and help Vietnam's rice industry, as well as agricultural product brands with geographical indications to increase competitiveness in the international market.
Promoting sustainable rice production and export
The Ministry of Industry and Trade (MoIT) has issued Instruction 07/CT-BCT dated August 15, 2023 on intensifying market information and trade promotion to boost rice exports while stabilizing the domestic market, ensuring the interests of rice farmers.
Complex changes in the global rice market have affected the production and export of Vietnamese rice.
Data from the General Department of Vietnam Customs show that Vietnam exported 660,738 tonnes of rice in July earning US$362.66 million, up 6.9 percent in volume and 6.4 percent in value compared with June. In the first seven months, rice exports reached nearly 4.9 million tonnes in volume, up 20.1 percent year-on-year, and US$2.62 billion in value, up 31.4 percent.
While Vietnamese rice businesses see major export opportunities, increases in global prices may affect domestic retail prices and the consumer price index (CPI) of 2023.
In this context, to balance exports and domestic sales as well as to ensure the interests of rice farmers, the MoIT has assigned the Vietnam Directorate of Market Surveillance to providing guidance for local market surveillance officials to tighten coordination with relevant authorities in controlling rice supply and prices to prevent speculation and unreasonable pricing. Controls must be tightened to prevent trade in rice products of unclear origin.
The Vietnam Directorate of Market Surveillance is also responsible for coordinating with the Agency of Foreign Trade in monitoring the implementation of regulations on rice exports in accordance with the Government’s Decree 107/2018/ND-CP dated August 15, 2018.
Taking advantage of export opportunities
According to Assoc. Prof. Dr. Ngo Tri Long, India’s suspension of rice exports and Thai farmers advised to reduce rice planting areas due to drought, have created a direct impact on world rice prices. Export rice prices have skyrocketed in the global market, pushing up rice prices in many countries. However, rice prices sold in the Vietnamese market have not changed much, especially at supermarkets and price stabilisation stores.
Economist, Assoc. Prof. Dr. Dinh Trong Thinh said the information that Vietnamese rice price is the most expensive in the world is good news because the price of Vietnamese rice has always been lower than that of Thailand. However, rice exporters should note that this price fluctuation may only happen in a short period, before returning to the equilibrium level.
Meanwhile, the consistent goal of the Government and the Ministry of Industry and Trade is to take advantage of market opportunities and ensure food security. The supply chain cannot be broken, while appropriate storage is of great significance.
Besides, it is advisable to carefully calculate the amount of rice to be sold because selling at attractive prices is a rare opportunity.
India, the largest rice exporter to the UK market (accounting for 27%) will temporarily suspend rice exports, which will result in a supply shortage of about 75,000 tonnes of rice, in the second half of 2023. If marketing efforts are actively implemented, Vietnamese rice exporters will certainly have the opportunity to raise their market share in this market.
Despite being a major rice exporter in the world, Vietnamese rice exported to the UK is often sold under distributors’ brands, thus, consumers are not aware of the origin of rice from Vietnam.
In the context of supply disruption and competitive advantages, thanks to the UK-Vietnam Free Trade Agreement, domestic exporters need to seize this ‘golden’ opportunity to require rice distributors in the UK to use Vietnamese rice brands. This is considered a long-term solution for Vietnamese rice to maintain its market share in the UK, once the quality of Vietnamese rice has conquered consumers.
“With a community of more than 5.5 million people of Asian descent, the demand for rice in the UK is huge, but this country does not grow rice and all consumption demand depends on imports. In 2022, the UK imported nearly 3,400 tonnes of rice from Vietnam, an increase of 24.5% compared to 2021. This is quite a modest level, only accounting for about 0.6% of the market share,” according to Trade Counselor at the Vietnam Trade Office in the UK Nguyen Canh Cuong.
The Ministry of Industry and Trade said that it will continue to closely monitor the world rice market and promptly notify relevant ministries, agencies, and rice exporters, to take the initiative in regulating rice production, trading and export activities.
Furthermore, the ministry will also boost trade promotion activities to improve the value of Vietnamese rice products, in addition to making good use of preferential mechanisms under free trade agreements, to diversify export markets.
T.Huong
Source: VNA