Vietnam's rice exports earned more than 4 billion USD last year, with revenue expected to rise even more this year. (Photo: VNA) The global rice supply is decreasing, and countries such as thePhilippines, Indonesia, China and some other markets are all increasing riceimports to ensure food security, which creates opportunities for Vietnameserice export this year.
After many fluctuations in supply and price last year, global ricetrade continues to be "hot" from the beginning of this year.
Limited supply due to unfavourable weather, exports being bannedor restricted in some countries, increased import demand in many markets, and RedSea tensions are the main reasons why the rice market heats up this year.
Global ending inventories for the 2023-2024 crop year are forecastat more than 167 million tonnes, down 8.6 million tonnes compared to theprevious crop year and the lowest inventory in the past six crop years.
India, the largest exporting country, with more than 20 milliontonnes of rice per year, has applied policies restricting rice exports sincethe middle of last year.
Many countries have turned to finding alternative sources of ricesupply, especially from Southeast Asia, creating opportunities for Vietnameserice to increase exports, as well as get good export prices.
Vietnam's rice exports earned more than 4 billion USD last year,with earnings expected to rise even more this year.
Nguyen Anh Son, Director of the Agency of Foreign Trade under the Ministryof Industry and Trade (MoIT), analysed that Vietnam's rice industry has hadremarkable growth through strong transformation in both production and export.The growth in output, product quality and improved production processes havehelped expand the market and enhance the position of Vietnamese rice in theinternational market.
Selective markets such as Europe, the US, the Republic of Koreaand some new markets in the Middle East tend to favour high-quality Vietnameserice.
The MoIT requests localities and rice industry businessassociations to share information and propose solutions in market development,with close co-ordination between units under the ministry and Vietnamese tradeoffices abroad in building and implementing practical, effective tradepromotion activities to support rice industry enterprises in exploiting diverseexport markets, building and enhancing the Vietnamese rice brand.
The Philippines can import up to 4.1 million tonnes of rice thisyear, up from the previous forecast of 3.9 million tonnes. Its rice importssoared due to the drought affecting domestic rice output.
China was Vietnam's third largest rice import partner last year,with output of 917,255 tonnes, turnover of more than 530 million USD, with anaverage price of 578 USD per tonne.
It is predicted that this year, this market will increase riceimports to balance import and production to ensure food security, possiblyexceeding the figure of more than 900,000 tonnes last year, while export pricealso has room for further increases.
The Voiceof Vietnam (VOV) online newspaper quoted Nguyen Ngoc Nam, Chairman ofthe Vietnam Food Association, as saying that the association recommended thatthe MoIT strengthened information on import and export data this year, tobalance rice supply and demand of the parties favourably.
He also recommended conducting market research to conduct tradepromotion programmes in markets, to promptly update information about riceexporters to best orient exports.
Also vital are efforts to research and negotiate to signpreferential trade agreements with a number of potential markets to takeadvantage of the progress of the agreements that have been put into effect andrequest partners to open up more, increasing Vietnam's rice quota.
Finally, there is the work of raising awareness of tradersimplementing free trade regulations to ensure sustainable production and exportin Vietnam.
With timely support policies from the Government, ministries andbranches, and solutions to open the market, circulate goods and promoteproduction, the export of rice has recorded a number of positive results,contributing to the consumption of rice and commodity rice at prices favourableto farmers.
Rice prices in Indonesia soared early this year due to a serioussupply shortage.
Indonesia has experienced eight consecutive months of rice supplyshortage compared to demand as of February this year, with rice scarcity insupermarkets, while in the Philippines the Department of Trade and Industry(DTI) has asked people to switch to buying rice with stabilisation prices toavoid rice prices rising too high in the free market.
Despite being one of the primary supply sources for Senegal, acountry with one of the highest per capita rice consumption rates in WestAfrica, Vietnam's rice exports to this nation remain modest.
According to the Vietnam Trade Office in Algeria and Senegal, Vietnamshipped 12,000 tonnes of rice to Senegal last year, resulting in a turnover of 5.35million USD, up 215% year-on-year. However, the amount is small compared to theAfrican country’s purchase of 1.3 million tonnes of rice in that year.
Senegal imports between 900,000 and 1 million tonnes of the grainannually, mostly low-priced 100 per cent broken rice. Its main suppliersinclude India, Thailand, China, Pakistan, Uruguay and Vietnam. Apart fromserving the domestic market of over 18 million people, the country also importsrice for re-export to neighbouring Mauritania, Guinea-Bissau and Gambia.
In the context of scarce supply and Senegal gearing up forpresidential elections this year, it is likely that the nation will increaseimports of broken rice from Asia.
In the first two months this year, rice exports reached 920,000tonnes, worth 640 million USD, up 2.1% in volume and 35.2% in value compared tothe same period last year, which is a very positive sign in the context ofglobal rice supply being tightened.
Vietnamese rice is currently present in more than 180 countriesand territories, including demanding markets such as Europe, the US, theRepublic of Korea and Australia./.
VNA
