Rice exports flourish

According to data from the Ministry of Agriculture and Rural Development, in the first 7 months of 2024, Vietnam exported over 5.1 million tons of rice, with a turnover of 3.2 billion USD, an increase of 25% in volume and 5.8% in value over the same period in 2023.

It is worth noting that the average export price of rice in the first 7 months of this year increased significantly compared to the same period last year. According to the Vietnam Food Association (VFA), the average export price of Vietnam's rice over the past 6 months reached a record high: 636 USD/ton, an increase of 18% compared to the average price of 538 USD/ton in the first 6 months of 2023. For example, at one point, the export price of Vietnam's rice to Brunei reached 959 USD/ton, to the US it reached 868 USD/ton, to the Netherlands it reached 857 USD/ton, to Ukraine it reached 847 USD/ton, to Iraq it reached 836 USD/ton, to Türkiye it reached 831 USD/ton...

Rice export in 2024 is confident with the target of 5 billion USD

According to VFA, import demand from Vietnam’s traditional customers such as the Philippines, Indonesia, China, Ghana, Malaysia, Singapore, etc. is high and increasing. In addition, rice exporting enterprises are also actively expanding to new markets such as the Middle East, Africa, South America, Korea, Japan, etc.

Notably, Vietnamese rice is considered to be of the highest quality in the world. For example, ST25 rice has been honored twice in a row as “World’s Best Rice”. In the first months of this year, Vietnam’s rice export price was also the highest in the world, surpassing Thailand, Pakistan and India.

Mr. Nguyen Anh Son - Director of the Import-Export Department - Ministry of Industry and Trade said that in the past 30 years, our agriculture has demonstrated its great role and position in economic development and socio-political stability, creating livelihoods for over 60% of the population living in rural areas and contributing nearly 12% of the country's GDP (in 2023).

Mr. Pham Thai Binh - Chairman of the Board of Directors of Trung An High-Tech Agriculture Joint Stock Company shared that in the past 5 years, the Ministry of Agriculture and Rural Development, in collaboration with provinces, cities, farmers and businesses, has completely changed the structure to improve the quality of rice. Thanks to that, Vietnamese rice is expensive but countries still accept it.

Confident with the target of 5 billion USD

According to forecasts, the world will have a shortage of 7 million tons of rice this year. Some countries limit exports, while others increase rice imports for reserves. This creates opportunities for rice exporting countries, including Vietnam.

Experts also believe that the market trend from now until the end of the year is that Vietnamese rice prices are unlikely to fall further, even if India resumes exports. Because demand in many markets is still increasing. Therefore, Vietnam's rice exports in 2024 are forecast to exceed 5 billion USD.

However, the downside is that the export price of Vietnamese rice still fluctuates, sometimes lower than other countries, showing instability in the export market. An inherent weakness of the Vietnamese rice industry is the situation of everyone doing their own thing. Farmers produce on a small scale, not following standards but only relying on experience. Businesses also compete to buy and sell, lower prices, and suppress goods when entering the international market.

India currently exports more than 40% of the world's total rice. If India relaxes the rice export ban, it will push rice prices in major exporting countries in the world down to quite low levels, including Vietnam. In the current context, the Ministry of Industry and Trade recommends that rice exporting enterprises closely monitor the world and domestic rice markets, and make careful and certain calculations when offering prices for export shipments to ensure business efficiency and maintain the reputation of Vietnamese rice.

In addition, according to experts, currently, in countries with strategic export industries on a national and international scale such as the oil palm industry in Malaysia, the coffee industry in Brazil, the rice industry in Thailand... in addition to organizations of producers and traders such as associations, unions, cooperative unions... there is also the model of "Industry Council" or "Industry Coordination Board" at the national level. This is an institution that connects state ministries and branches with organizations representing actors in the value chain (farmers, processors, traders) and between localities participating in production. At the same time, it supports solving major, overall problems of the industry; advises government leaders on major policy programs.

Currently, the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development have proposed the establishment of a National Rice Council. The Council is an inter-sectoral coordination organization, advising the Prime Minister to research, direct, and coordinate the resolution of important inter-sectoral issues for the development of the rice industry.

Experts expect that in the coming time, with the role of “conductor” for the rice industry, the council will contribute to consulting and advising the Government on the market and rice output to ensure national food security, increase exports as well as income of rice growers. The council will create links in the value chain, from the input supply chain to the output market to ensure stable production, increase the value of exported rice, and promote the building of a brand for Vietnamese rice.