Rice exports are flourishing
According to data from Ministry of Agriculture and Rural Development, in the first 7 months of 2024, Vietnam exported over 5.1 million tonnes of rice, with a turnover of 3.2 billion USD, an increase of 25% in volume and 5.8% in value compared to the same period in 2023.
It is worth mentioning that average export price of rice in the first 7 months of this year increased significantly compared to the same period last year. According to Vietnam Food Association (VFA), average export price of Vietnamese rice over the past 6 months has reached a record high: 636 USD/tonne, up 18% compared to average price of 538 USD/tonne in the first 6 months of 2023. For example, at one point, the export price of Vietnamese rice to Brunei reached 959 USD/tonne, to the US reached 868 USD/tonne, the Netherlands reached 857 USD/tonne, Ukraine reached 847 USD/tonne, Iraq reached 836 USD/tonne, Turkey reached 831 USD/tonne... According to VFA, import demand from traditional customers of Vietnam such as the Philippines, Indonesia, China, Ghana, Malaysia, Singapore... is high and increasing. In addition, rice exporting enterprises are also actively expanding to new markets such as the Middle East, Africa, South America, Korea, Japan...
Notably, Vietnamese rice is considered to have the world's top quality. For example, ST25 rice has been honored twice in a row as "World's Best Rice". In the first months of this year, Vietnam's rice export price was also the highest in the world, surpassing Thailand, Pakistan and India.
Mr. Nguyen Anh Son - Director of Import-Export Department - Ministry of Industry and Trade said that in the past 30 years, Vietnamese agriculture has demonstrated its great role and position in economic development and socio-political stability, creating livelihoods for over 60% of population living in rural areas and contributing nearly 12% of the country's GDP (in 2023).
Mr. Pham Thai Binh - Chairman of Board of Directors of Trung An High-Tech Agriculture Joint Stock Company shared that in the past 5 years, Ministry of Agriculture and Rural Development, in collaboration with provinces, cities, farmers and businesses, has completely changed structure to improve quality of rice. Thanks to that, Vietnamese rice prices are high but countries still accept it.
Confident with the target of 5 billion USD
According to forecasts, the world will have a shortage of 7 million tonnes of rice this year. Some countries limit exports, while some countries increase rice imports for reserves. This creates opportunities for rice exporting countries, including Vietnam.
Experts also believe that the market trend from now until the end of this year, Vietnamese rice prices are unlikely to fall further, even if India returns to exporting. Because demand in many markets is still increasing. Therefore, Vietnam's rice exports in 2024 are forecast to exceed 5 billion USD.
However, downside is that export price of Vietnamese rice is still fluctuating, sometimes lower than other countries, showing instability in export market. An inherent weakness of Vietnam's rice industry is situation of everyone doing their own thing. Farmers produce on a small scale, not following standards but only confident in experience. Enterprises also have a situation of competing to buy, compete to sell, lower prices and suppress goods when entering international market.
Currently, India is exporting more than 40% of total rice volume of the world. If India relaxes rice export ban, it will pull rice prices of major exporting countries in the world down to a fairly low level, including Vietnam. In current context, Ministry of Industry and Trade recommends that rice exporting enterprises closely monitor the world and domestic rice markets, have careful calculations and be sure when offering prices for export shipments to ensure business efficiency and maintain reputation of Vietnamese rice.
In addition, according to experts, currently, in countries with strategic export industries on a national and international scale such as oil palm industry in Malaysia, coffee industry in Brazil, rice industry in Thailand... in addition to organizations of producers and traders such as associations, unions, cooperative unions... there is also a model of "Industry Council" or "Industry Coordination Board" at national level. This is an institution that connects state ministries and agencies with organizations representing actors in value chain (farmers, processors, traders) and between localities participating in production. At the same time, it supports solving major, overall problems of this industry; advises Government leaders on major policy programs.
Currently, Ministry of Industry and Trade and Ministry of Agriculture and Rural Development have proposed establishment of National Rice Council. The Council is an inter-sectoral coordination organization, advising the Prime Minister to research, direct and coordinate solution of important, inter-sectoral issues for development of rice industry.
Experts expect that in the coming time, with role of "conductor" for rice industry, the Council will contribute to consulting and advising the Government on market and rice output to ensure national food security, increase exports as well as income of rice growers. The Council will create linkages in value chain, from input supply chain to output market to ensure stable production, increase value of exported rice and promote branding for Vietnamese rice.

Source: Vitic/ congthuong.vn