Name 3 markets that buy the most rice in Vietnam
According to statistics from General Department of Customs, Vietnam's rice exports in December 2023 reached 492,387 tons of rice, earning more than 338 million USD, down 18% in volume and 15% in price compared to November.
Cumulatively for the whole year 2023, rice exports earned nearly 4.68 billion USD with nearly 8.13 million tonnes, an increase of 14.4% in volume and a sharp increase of 35% in value compared to the whole year of 2022. This is a record high in more than 30 years of Vietnam participating in rice export.
Average export price for the whole year reached 575 USD/tonne, an increase of 18% compared to 2022. December 2022 is the month with the highest export price ever, compared to the beginning of 2023, export prices was higher than 32%.
Regarding market, the Philippines is still the largest market for Vietnamese rice with more than 3.1 million tons in 2023, earning more than 1.7 billion USD, down 2.46% in volume but up 18% in value compared to the previous year. Average export price reached 559 USD/tonne, down 2.5% over the same period.
Notably, Indonesia has surpassed China to become the second largest customer of Vietnamese rice. In 2023, rice exports to this market earn more than 640 million USD with more than 1.17 million tonnes, a sharp increase of 878% in volume and 992% in value compared to the same period in 2022.
Regarding China, Vietnam exported 917,255 tonnes to this market and earned more than 530 million USD, up 8% in volume and 23% in value compared to the same period last year. In 2022, China was the second largest customer of Vietnamese rice with a proportion of 12% in both volume and turnover.
2023 is a year that witnessed many fluctuations for rice products after India announced a ban on exporting this important product. Countries have "flocked" to Vietnam and Thailand to find alternative sources of supply for the world's largest rice exporter with a turnover accounting for nearly 1/3 of the world.
Looking back at the whole year 2023, at many times Vietnam's 5% broken rice has continuously maintained a price of 663 USD/ton, while at the same time the price of Thai rice of the same quality was only 558 USD/ton, lower than Vietnamese rice to 105 USD/ton.
Rice prices are forecast to continue to remain high
Recently, Mr. Bayu Krisnamurthi - Director of State Logistics Agency (Bulog) of Indonesia - said that the Government of this country has agreed to assign Bulog to import 2 million tons of rice in 2024 to ensure stable rice reserves and respond to food shortage situations due to domestic production conditions not having recovered. However, according to actual data, quantity can be adjusted to suit, ensuring national food source.
Mr. Bayu said that task of importing 2 million tons of rice in 2023 faced difficulties due to transportation problems. Silt in the Suez Canal and conflict in the Middle East have hampered supply of imported food.
Currently, the government's rice reserve (CBP) in Bulog warehouse is still maintained safely. Bulog will ensure the supply of 1.3 million tons of CBP for market operations and rice aid distribution starting from January 2024.
According to Mr. Bayu, rice prices will still increase this year because domestic production has not recovered, production costs are still high, especially fertilizers and supply protection policies of rice producing countries. Therefore, the rice import policy needs to continue to be implemented in the near future.
Previously, President Jokowi confirmed that Indonesia would import 1 million tons of rice from India and 2 million tons from Thailand to ensure safety of Indonesia's national rice reserves by 2024.
Regarding market outlook for 2024, experts predict that rice prices will continue to be high due to limited supply while demand of many countries is high.
Ministry of Agriculture and Rural Development forecasts that rice exports will continue to be favorable due to the world supply shortage and India will likely continue to maintain export restrictions. Meanwhile, some countries that traditionally import Vietnamese rice such as Indonesia and the Philippines all need to increase rice imports...
Mr. Nguyen Vinh Trong - Director of Viet Hung Co., Ltd. - forecasts that rice prices in 2024 and in future will remain high, Vietnam should take advantage of production and export opportunities to increase income, improve farmers' lives.
Regarding the Philippine market, Mr. Phung Van Thanh - Vietnam Trade Counselor in the Philippines - said that rice is an essential commodity here, like Vietnam, this country imports 3.5-4 million tonnes/year, annually. Same goes for 2024, Vietnam is the Philippines' number 1 rice partner.
Vietnamese rice has advantage of suitable qualities for the people of this country, from the poor to those with high incomes with competitive prices. But that was years ago, now Vietnamese rice prices are high, so issue of competition needs to be looked back.
“Vietnamese enterprises also have long-standing relationships with import partners here and are geographically close to the Philippines. The Philippines recognizes its high dependence on Vietnamese rice, so it is diversifying its supply but I believe we can still maintain the number 1 position", said Mr. Phung Van Thanh.
The Philippine market space is still large for Vietnam to further exploit. Vietnamese exporters need to keep the Philippine market while expanding new markets. Besides, it is necessary to build a brand.
“Recently, we brought a delegation from the Vietnam Food Association (VFA) to survey the Philippines but unfortunately could not find Vietnamese rice on the market. Meanwhile, Japanese rice and Thai rice are very good brands. Many Filipinos eat Vietnamese rice but don't know it. Export rice to the Philippines needs to build a brand - a big task that needs to be done in addition to quantity", Mr. Thanh posed the problem
According to forecasts of US Department of Agriculture, global rice production in the 2023-2024 crop years reached nearly 518 million tons, while total consumption is 525 million tons. Thus, it is forecast that the world will have a shortage of about 7 million tons of rice in 2024. This creates opportunities for rice exporting countries, including Vietnam.

Source: Vitic/ congthuong.vn