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Vietnam rice market update: Rice exports are expected to reach 8 million tonnes in 2024 

 Monday, February 5,2024

AsemconnectVietnam - Under favorable conditions, Vietnam expects to maintain a record level of rice export volume in 2024. Vietnam Economic News’ Nguyen Hanh spoke with Nguyen Nhu Cuong, Director of the Ministry of Agriculture and Rural Development (MARD)’s Department of Crop Production, on this issue.

 In 2023, rice exports reached record levels in terms of both volume and value. Farmers were happy with a bumper harvest and good prices. Could you elaborate on the rice sector’s results in 2023?
“A bumper harvest” is a term that many people mention when talking about the Vietnamese rice sector in 2023 because it not only achieved high yields but also benefited from good prices.
According to an MARD report, the cultivated area in 2023 reached 7.16 million ha, a decrease of 9,000ha compared to 2022. However, the yield increased by 100kg per hectare, resulting in a total rice production of 43.6 million tonnes. With abundant supply, the rice sector not only met domestic consumption and reserve needs but also exported eight million tonnes, earning US$4.78 billion, a 38.7 percent increase compared to 2022.
The price of five-percent broken rice also reached a historical peak, rising from US$473 to US$663 per tonne in 2023. In late 2023, rice farmers in the Mekong Delta continued to sell fresh paddy rice in the fields at an average price of VND9,200 per kg. This was also the highest price in history. It can be said that the rice sector has seized market opportunities to increase incomes for rice farmers and profits for businesses.
Vietnam wins contracts to export rice to Indonesia
Indonesia has concluded its bidding process for 17 rice packages with a total volume of 500,000 tons. It is a good news that Vietnam has won 8 out of the 17 packages.
As per the Indonesian National Logistics Agency (Bulog), Vietnam has won 8 out of 17 bidding packages, with a focus on 5 businesses.
Among these, three major enterprises - the Loc Troi Group Joint Stock Company (LTG), the Vietnam Northern Food Corporation (Vinafood 1), and the Vietnam Southern Food Corporation (Vinafood 2) - each won two lots.
Vietnam stands out as the only country with multiple businesses participating and securing a substantial number of bids.
According to the General Department of Vietnam Customs, Indonesia surpassed China to become Vietnam’s second-largest market for rice exports in 2023, with total export volumes reaching 1.16 million tons, amounting to 640 million USD.
Over 12,700 tonnes of rice to be given to people during Tet
The General Department of State Reserves under the Ministry of Finance has decided to provide 12,736 tonnes of rice from the national reserve to support 849,127 people on the occasion of the Lunar New Year (Tet) Festival and the between-crop period.
Accordingly, by February 9 (the 30th day of the last lunar month), 10,401 tonnes of rice will be allocated to 17 localities, namely Soc Trang, Kon Tum, Ha Giang, Bac Kan, Gia Lai, Binh Dinh, Cao Bang, Nghe An, Dak Lak, Dak Nong, Bac Lieu, Ninh Thuan, Binh Phuoc, Quang Ngai, Kien Giang, An Giang and Tay Ninh.
Meanwhile, more than 2,300 tonnes will be delivered to people in Kon Tum, Gia Lai, Dak Lak, Dak Nong, Kien Giang, An Giang and Lang Son provinces for March 15 to assist them in the between-crop period.
Philippines- Vietnam’s biggest rice importer
Vietnam views the Philippines as one of its most important rice importers, Vietnamese Minister of Industry and Trade Nguyen Hong Dien has told visiting Secretary of the Philippine Department of Agriculture Francisco Tiu Laurel Jr..
Currently, the Philippines is Vietnam’s sixth biggest trading partner in the Association of Southeast Asian Nations (ASEAN) and the 16th in the world. It remains Vietnam’s biggest rice buyer. Last year, two-way trade reached 7.8 billion USD, down only 0.1%.
Dien stressed the significance of Laurel’s visit to bilateral trade, especially the rice trade, and affirmed that the two countries are important trade partners of each other in Southeast Asia.
Within the framework of the state visit to Vietnam by Philippine President Ferdinand Romualdez Marcos Jr. on January 29 and 30, the Vietnamese Ministry of Industry and Trade (MoIT) and the Philippine Department of Agriculture signed a memorandum of understanding (MoU) on rice trade.
The deal set out major cooperation orientations and activities to boost collaboration in rice trade in the next five years. It demonstrates the friendship and good cooperation between the two countries, and is expected to benefit both economies.
Source: Vitic/VNA


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