Opportunities and challenges

In recent years, Vietnam has made remarkable growth and strong changes in rice production and export; expanding the market, enhancing the position of Vietnamese rice in more than 180 countries and territories. In 2023, thanks to making good use of signed FTAs, rice production and export set a record in output and productivity, reaching the finish line with an annual export turnover of 4.78 billion USD, an increase of 36.6% over the previous year. This is the highest level in many years of the Vietnamese rice industry. Up to now, demanding markets such as Europe, the United States, Korea, Australia and some new markets in the Middle East are also gradually favoring high-quality rice originating from Vietnam.

Domestic rice production is facing both opportunities and challenges.

In 2024, although the world situation is forecast to still have many difficulties, the rice export situation has shown positive signs right from the first months of the year. Specifically, in the first two months of 2024, rice exports reached 708 million USD, an increase of 49.8%, showing that the prospects in major markets continue to be positive. In addition, according to many forecasts, rice prices will continue to increase in 2024 due to tight supply. Due to India's export restrictions combined with unusual weather fluctuations, while rice demand continues to increase...

This is both an opportunity and a challenge for Vietnam's rice production and export. At the Global Rice Conference - SS Rice News Convention 2024, recently held in Da Nang City, Mr. Nguyen Anh Son, Director of the Import-Export Department (Ministry of Industry and Trade) said that the current global rice trade situation is being affected by many factors that have affected the rice production and export situation of many countries. Vietnam is one of the three largest rice exporting countries in the world, so all changes in policy, fluctuations in supply and demand and price trends of rice consuming countries in the world directly affect the Vietnamese rice industry.

Improving the quality of Vietnamese rice

In recent times, with timely support policies from the Government, the Prime Minister and ministries, sectors, and solutions to open up the market and circulation of goods, the promotion of production and export of rice has recorded some positive results, contributing to the consumption of rice and paddy at prices beneficial to farmers directly involved in production.

According to Mr. Nguyen Anh Son, to ensure the goals and effectiveness in the management and operation of rice export, the Ministry of Industry and Trade is the agency in charge, coordinating with ministries, branches, relevant agencies, localities and the Vietnam Food Association (VFA) to carry out the tasks assigned in Decree No. 107/2018/ND-CP dated August 15, 2018 on rice export business. In particular, the Ministry of Industry and Trade is the agency in charge of reviewing, appraising and granting certificates of eligibility for rice export business to Vietnamese traders, in order to ensure that rice export activities take place fairly and effectively. Thereby, promoting sustainable development, aiming to improve the quality, value and position of Vietnam's rice industry.

Implementing the Prime Minister's direction, the Ministry of Industry and Trade issued Directive No. 07/CT-BCT dated August 15, 2023 on strengthening market information, trade promotion, developing rice export markets and stabilizing the domestic market, in the current period. Currently, the Ministry of Industry and Trade is also developing and will soon issue a directive to implement assigned tasks, serving the management of rice exports.

Previously, every year, the Ministry of Industry and Trade also presided over and coordinated with the Ministry of Agriculture and Rural Development, state management agencies in localities with rice exporting enterprises, VFA and traders to organize meetings and conferences to jointly agree on drastic implementation of a group of solutions to ensure supply, stabilize domestic food prices and facilitate and limit risks for rice export business activities in each stage of the year. At the end of 2023, at the International Rice Summit held in the Philippines, Vietnamese rice was honored as "The best rice in the world". This is an opportunity for reputable Vietnamese brands to expand export markets as well as increase product value, enhancing the position of Vietnamese rice brands.

Continuing to enhance the position of the domestic rice industry, the Prime Minister also approved the Project of 1 million hectares of high-quality rice in the Mekong Delta, with the goal of forming 1 million hectares of high-quality and low-emission rice specialized areas associated with reorganizing the production system according to the value chain, applying sustainable farming processes to increase value, sustainable development of the rice industry, improve production and business efficiency, income and life of rice growers, protect the environment... The specific goal is that by 2030, the cultivated area of ​​high-quality and low-emission rice specialized areas will reach 1 million hectares. The amount of exported rice with the high-quality, low-emission brand accounts for over 20% of the total rice export volume of the entire specialized area.