Harvesting rice in Long An. Image: Son Trang.
According to the Vietnam Trade Office in Singapore, statistics from the Singapore Business Administration show that in the first 3 months of 2024, Singapore’s total rice import value reached nearly 113 million Singapore dollars (SGD), an increase of 24%. compared to the same period in 2023. Of which, Vietnamese rice imported into Singapore reached 36 million SGD, an increase of 80% over the same period in 2023.
With the above turnover, Vietnamese rice accounts for 32% of Singapore’s total import value in the first quarter of this year and ranks No. 1 among rice exporting countries to this market. Behind Vietnam are India (34 million SGD) and Thailand (33 million SGD). Thus, this is the first time Vietnam has become the largest rice exporter to Singapore. Vietnamese rice, Indian rice and Thai rice currently account for 91% of the rice market share in Singapore.
For a long time, India has often been the largest supplier of white rice to the Singapore market. This is also Vietnam’s traditional export rice to markets, including the Singapore market. India’s ban on exporting types of rice other than basmati from July 20, 2023 has been well taken advantage of by Vietnamese businesses to increase market share and export value of white rice to Singapore.
Not only that, Vietnamese businesses have also successfully expanded the Singapore market to other rice products such as glutinous rice and milled or peeled fragrant rice. The evidence is that in the first quarter of this year, in the products of sticky rice and milled or peeled fragrant rice, Vietnam has risen to dominate the majority of the market share in Singapore, reaching 80% and 73% respectively. This is the main factor that helps Vietnam surpass Thailand and India to become the country with the largest rice market share in Singapore.
A type of white rice exported from Vietnam. Image: Son Trang.
Mr. Cao Xuan Thang, Vietnam Trade Counselor in Singapore, said that the trend of a sharp increase in Singapore’s rice import demand from 2023 will continue to be maintained in the first 3 months of 2024 due to two main reasons: the ban. India’s rice exports and the rapid recovery of tourist arrivals to Singapore.
In terms of volume, Singapore’s total imports of 9 main types of rice are estimated to reach more than 110 thousand tons, an increase of 6.15% over the same period in 2023. Regarding the market share structure of rice products, white rice dominates the market. the largest portion (25%), followed by milled or peeled fragrant rice (accounting for 22%), parboiled rice (accounting for 20%), Hom Mali white rice (accounting for 16%). Other rice products divide the remaining segment equally.
In the Singapore market, Thailand, India and Japan are the biggest competitors of Vietnamese rice. Of these, India almost completely dominates the parboiled rice market (accounting for 99%) and milled or peeled basmati rice (accounting for 96%). Thailand holds the largest market share in Hom Mali brown rice (98%), Hom Mali white rice (97%), and broken rice (68%). For regular brown rice, Japan is the country with the largest market share (72%).
Trade promotion has contributed significantly to the success of Vietnamese rice in Singapore. According to Mr. Cao Xuan Thang, recently the Vietnam Trade Office in Singapore has strongly implemented trade promotion activities, product display, and increased presence of Vietnamese rice products in the area; Support bringing Singaporean business delegations to participate in rice promotion activities in Vietnam.
Promoting rice trade to markets, including the Singapore market, is also a top concern in the leading rice exporting provinces in the Mekong Delta. Ms. Chau Thi Le, Deputy Director of Long An Department of Industry and Trade, said that in 2023, Long An will export over 920 thousand tons of rice, an increase of 55% in volume compared to 2022. Long An rice has been exported to about 40 markets. markets such as Hong Kong, Singapore, Philippines… with the main types of rice being fragrant rice, white rice, sticky rice and Japonica rice.
Long An’s rice export in recent times has received active support from trade promotion activities. In 2023, Vietnamese Trade Offices in Singapore, UAE, China, Korea, Japan… have brought many foreign business delegations to Long An to connect and trade many different types of goods, including rice goods. Therefore, in 2024, Long An is ready to coordinate with agencies under the Ministry of Industry and Trade and the Vietnam Trade Office in other countries to welcome foreign business delegations to this province to connect trade.
Farmers in the Mekong Delta harvest winter-spring rice 2023 – 2024. Photo: Son Trang.
However, Thailand, Japan, and India are also very interested in investing in promoting product images as well as having agreements with Singaporean importers and distributors on keeping product names and brands. chemistry. Meanwhile, Vietnamese rice export enterprises have not yet strong potential and rarely invest in promoting and introducing products. Therefore, importers and distribution systems in Singapore do not want to use Vietnamese brands when selling Vietnamese rice in this market, but mainly import commercial rice and then package the design, packaging and Singapore’s domestic brand to sell to consumers.
Mr. Cao Xuan Thang said that in order for Vietnamese rice to increase its market share and sustainably maintain its leading position, competing with Indian and Thai rice products in the Singapore market, it needs the support and contribution of Ministries, branches, localities, industry associations and businesses. At the same time, strengthen trade promotion activities, promote product brands and corporate brands, increase the presence of Vietnamese rice products in Singapore, and maintain product quality assurance.
In addition, signing a bilateral agreement on rice trade between Vietnam and Singapore may be an effective tool to maintain the position of Vietnamese rice products in this market.
