Exporting more than 2 million tons, Vietnamese rice dominates key markets

Information at the Conference to evaluate rice export results in 2023, the first quarter of 2024 and discuss rice export orientation in the coming time, organized by the Ministry of Industry and Trade on April 26, in Can Tho, representatives of the Export Department Exporters said that Vietnam’s rice exports continue to achieve many positive results, dominating key markets.

Strong growth in the first months of the year

Citing preliminary statistics from the General Department of Customs, Mr. Nguyen Anh Son, Director of the Import-Export Department (Ministry of Industry and Trade) said that by the end of the first quarter of 2024, rice exports increased by 17.6% in volume, increase 45.5% in turnover and increase 23.6% in price over the same period in 2023, reaching over 2.18 million tons, equivalent to nearly 1.43 billion USD, average price 653.9 USD/ton.

Notably, Vietnam’s rice exports in the first quarter of the year continued to dominate key markets with large consumption demand for output; In which the Philippines is still Vietnam’s largest rice import market, accounting for 46.4% of the total volume and 45.5% of the country’s total rice export turnover. Next is Indonesia, with a sharp increase of 199.7% in volume, 308.8% increase in turnover and 36.4% increase in price compared to the same period in 2023; Rice exports to the Malaysian market increased by 28.8% in volume, 60.6% in turnover and 24.7% in price compared to the first quarter of 2023.

From recent rice export results, Mr. Nguyen Anh Son commented that although global rice trade activities in 2023 will still have many complicated developments, with the close direction of the Government and the Prime Minister, With the timely direction of the Ministry of Industry and Trade and other ministries and branches on solutions to open the market and circulate goods, promoting Vietnam’s rice production and export in 2023 and the first quarter of 2024 has been achieved. achieve positive results.

More specifically, according to the representative of the Import-Export Department, rice export management has contributed to the consumption of rice and commodity rice and ensured the benefits of rice growers according to current policies; regularly maintain minimum circulation reserves; ensure balance between exports and domestic consumption; contributing to stabilizing domestic rice prices; implement international commitments; ensure effective export.

Export of high-value rice varieties, suitable to market needs and Vietnam’s advantages, is increasing rapidly such as: Fragrant rice, ST types, high-quality white rice, japonica rice.

In particular, rice export traders make good use of market opportunities from new generation Free Trade Agreements, the market structure gradually shifts positively towards diversification. Besides traditional markets such as China, the Philippines, or Africa, businesses have also expanded into “difficult” markets such as Europe, … with high value but not large volume.

This shows that the quality of Vietnam’s rice is increasing and meeting strict requirements from demanding markets while making good use of incentives from Free Trade Agreements.

Besides, traders also take advantage of opportunities in the challenges of the global food trade market to become an alternative supply source in many potential markets such as the US, Canada, and Chile.

Mr. Nguyen Anh Son said that Vietnam’s rice export activities still have many potential challenges. Specifically, traders’ market diversification strategies are still limited, the rice export market still shows signs of being unsustainable, depending on a number of key traditional markets such as the Philippines, China and Indonesia.

Market development work has not been supported commensurate with the industry’s potential. Traders have not focused on developing links to build raw material areas as well as implementing traceability solutions and building data information bases to meet the requirements of import markets.

The application of “reforms” in Decree No. 107/2018/ND-CP dated August 15, 2018 of the Government on rice export business on exporting parboiled rice, organic rice, and micronutrient-fortified rice Nutrition to promote the export of these products is still very limited. Since the promulgation of Decree 107/2018/ND-CP up to now, the export of this type of rice is still being carried out by traders who are granted Certificates of eligibility for rice export business.

Besides, Vietnamese rice exports also face fierce competition from other competitors such as Thailand, Myanmar, and Pakistan. International freight rates remain high because freight transport activities are affected by geopolitical developments in Europe and the Middle East.

Be proactive in responding to market impacts

Assessing a number of factors affecting rice export activities in the coming time, according to a representative of the Ministry of Industry and Trade, salinity intrusion in the Mekong Delta in the dry season of 2023-2024 is much higher than average. year. Increased saltwater intrusion events in the Mekong River estuary are likely to concentrate in April-May 2024, potentially affecting rice production in the Summer-Autumn crop of 2024.

In addition, uncertainties related to regional and global geopolitical tensions continue to develop complicatedly, especially in Europe and the Middle East, and Red Sea tensions affect trade psychology, too. Delivery process, prices of many important commodities (oil, raw materials for production, food…).

According to a report by the Food and Agriculture Organization of the United Nations (FAO), the proportion of countries and regions with food insecurity accounts for 30.4% of the world’s population. Therefore, nearly 30 countries have tightened, limited or suspended food exports to protect domestic supply. Although wheat and corn are two food items belonging to another consumer segment, they will somewhat impact rice prices at a certain time.

“Although exports in the first month of 2024 show positive signs, it is still necessary to observe and evaluate the import demand of Vietnam’s major markets such as the United States and the EU because they are still affected by inflation and exchange rates. Unemployment rates are increasing, the macroeconomy is not completely stable, and at the same time, we are observing and taking advantage of opportunities in a number of other countries and regions in Asia and Africa; have appropriate plans to meet the case of increased consumer demand, which is expected to recover more clearly in the second half of 2024,” a representative of the Ministry of Industry and Trade noted.

To promote rice exports in the coming time, at the conference, Deputy Minister of Industry and Trade Phan Thi Thang requested relevant ministries and branches; Localities, the Vietnam Food Association, rice exporters and functional units of the Ministry of Industry and Trade thoroughly grasp and seriously and effectively implement Directive No. 10/CT-TTg of the Prime Minister Government and Directive No. 03/CT-TTg of the Minister of Industry and Trade on promoting sustainable, transparent and effective rice production, business and export in the new situation.

Accordingly, leaders of the Ministry of Industry and Trade emphasized absolutely ensuring national food security in all situations, stabilizing the domestic market, taking advantage of opportunities to promote rice exports in possible conditions to bring bringing the highest value and efficiency to producers and businesses, ensuring sustainable and effective rice export, contributing to ensuring global food security.

On the other hand, businesses closely monitor the seasonal situation and world market developments to have appropriate production, purchasing, processing, storage, preservation and export plans, ensuring efficiency and deadlines. minimize possible risks.

Ms. Thang requested units to establish and strengthen a close and effective cooperation mechanism between rice traders and exporters with growing regions, producers and between traders to ensure the source of goods. Stability, quality, avoiding competition in buying, selling, market competition, supply and price pressure; focus on expanding and diversifying rice export markets; Affirming and enhancing the Vietnamese Rice brand in the international market, especially in new markets with much potential.

Meanwhile, Mr. Nguyen Anh Son informed that the Ministry of Industry and Trade will continue to remove market difficulties, taking advantage of incentives from new generation free trade agreements.

On the part of the Ministry of Industry and Trade, continue to flexibly organize and deploy trade promotion activities, combining traditional and online forms to enhance rice trade cooperation with traditional markets. systems such as Indonesia, Africa, China…; exploiting niche markets with fragrant rice and high quality rice that we have penetrated in recent years such as the EU, Korea, the United States, North America,…

“The Ministry will strengthen market information work; Maintain a reporting regime and provide information from Trade Offices and Trade Office branches in countries and territories to monitor and closely follow developments in the world market situation, especially the situation of the markets. large enough to promptly propose remedial measures; proactively take response measures when there are unusual developments, promoting rice exports,” Mr. Nguyen Anh Son said./.