Vietnamese rice exports are currently enjoying numerous favourable opportunities for growth in both volume and value. (Photo: VietnamPlus)
Hanoi (VNA) - Given the favourable market conditions, the number of orders for Vietnamese rice from many countries are on the rise, with rice exports yielding positive results.
Thanks to high prices and a surge in orders, rice exports have seen strong growth in the first months of the year. According to Nguyen Nhu Tiep, Director of the National Agro-Forestry-Fisheries Quality Assurance Department under the Ministry of Agriculture and Rural Development (MARD), in June, Vietnam was estimated to ship 650,000 tonnes of rice worth 383 million USD. These figures brought the total rice export volume and value in the first six months to 4.27 million tonnes and 2.3 billion USD, representing respective annual increases of 22.2% and 34.7%.
In 2022, Vietnam's rice exports also achieved impressive results with a volume of 7.1 million tonnes, the highest in the past decade, and a turnover of 3.45 billion USD, up 5.1% year-on-year. Notably, from August to the end of the year, the price of 5% broken rice reached the world's highest, surpassing Thai rice by 15-27 USD per tonne and Indian rice by 40-50 USD per tonne.
Quality Vietnamese rice products are favoured by many countries (Photo: VietnamPlus)
Experts have predicted that in the last half of 2023, more opportunities will be available for countries, including Vietnam, to increase rice exports. India currently accounts for 40% of global rice exports. The country's ban on rice exports (except Basmati rice) coupled with the adverse impact of El Niño on global rice production are likely to affect the demand for food consumption and storage, leading to a significant rice price increase in the near future.
As the world's third-largest rice exporter, Vietnam will be positively affected by India's export suspension. However, this opportunity also presents a challenge for the Southeast Asian nation to meet the needs of its importing partners who require at least 4 million tonnes of rice in the second half of 2023, and ensure sufficient domestic reserves and consumption.
Nguyen Nhu Cuong, Director of the MARD’s Department of Crop Production, evaluated that despite having a rice cultivation area of only 1.7 million hectares, Vietnam posts high yield and higher rice export prices compared to India’s and approximately equal to Thailand’s.
According to a report from the department, the cultivation area for the winter-spring crop this year decreased by 40,000 hectares compared to the previous year. However, thanks to technological advancements, the output still increased by 250,000 tonnes.
The plan for 2023 is to cultivate 7.1 million hectares of rice, with an average yield of 6.07 tonnes per hectare. The estimated production is 43.11 million tonnes, an increase of 0.4 million tonnes compared to 2022.
Thanks to the application of technological advancements, Vietnam’s rice output has experienced continuous increases (Photo: VietnamPlus).
With the estimated rice exports this year being under 8 million tonnes and expected production of about 43 million tonnes of grains, the country still ensures its food security.
Do Ha Nam, Vice Chairman of the Vietnam Food Association, noted that the global rice supply is currently scarce in contradiction to consumption demand from all markets. It is estimated that customer demand for Vietnamese rice will increase by at least more than 1 million tonnes this year compared to the average of previous years. Therefore, the market situation between now and the end of the year remains optimistic.
Deputy Minister of Agriculture and Rural Development Phung Duc Tien said there is a strong possibility that Vietnam's 2023 rice exports will exceed 8 million tonnes, bringing home over 4 billion USD./.
