The bright spot of Vietnamese rice.

Vietnamese rice continues to yield sweet results.

India's release of rice stocks has caused world rice prices to plummet. Meanwhile, in Vietnam, the price of common rice has stabilized after a few days of decline, while the price of fragrant rice, especially ST24 and ST25, continues to rise, currently reaching a record high of $1,300 per ton, yet businesses still do not have enough rice to export.

A bright spot for Vietnamese rice. (Photo: NH)

According to rice exporting businesses, the price of ST rice varieties, especially ST25, has increased by up to 5,000 VND/kg compared to last month and is currently at a very high level. The current price of raw rice is 25,000 - 26,000 VND/kg. This is due to a scarcity of supply while market demand remains very high, both domestically and for export.

While the export price of ST25 rice was only around 750-800 USD/ton at the beginning of this year, it has now risen to 1,300 USD/ton. This is an unprecedented price in the history of Vietnam's rice exports. Not only is it in high demand for export, but domestic consumption is also very strong, with high-quality rice selling for around 35,000 VND/kg.

Besides the ST line, other high-quality fragrant rice products from Vietnam are also selling well in markets such as Hong Kong, Singapore, the Philippines, the Middle East, and even some African countries at good prices.

According to Mr. Pham Thai Binh, Chairman of the Board of Directors of Trung An High-Tech Agriculture Joint Stock Company, ST rice varieties are currently priced very high, commonly around $1,000 per ton. Fragrant rice and high-quality rice varieties are also priced at $600-$700 per ton. These products are still exporting well and are not affected by India's "warehouse reopening" order.

According to Mr. Nguyen Vinh Trong, Director of Viet Hung Co., Ltd. ( Tien Giang ), when news broke about India's return to the global rice market, the export price of common white rice from Vietnam decreased by 5-10 USD/ton, and the domestic price decreased by 100-200 VND/kg. However, the price of fragrant rice such as Jasmine and Dai Thom 8 remained stable due to limited supply and high demand from markets such as the Philippines, Hong Kong (China), and Africa.

Not only are exports stable, but according to information from the Trade Department of the Vietnamese Embassy in Japan, following the success of bringing ST25 - Vietnam's first rice brand - to conquer the Japanese market in 2022, a second Vietnamese rice brand, A AN, has officially entered this most demanding market in the world.

Accordingly, starting in early October 2024, Tan Long Group successfully exported 1,000 tons of high-quality JAPONICA rice under the A AN brand to the Japanese market – one of the most demanding markets in the world.

According to Nguyen Duc Minh, Chargé d'affaires ad interim of the Vietnamese Embassy in Japan, Vietnamese rice is beginning to receive high praise from demanding markets such as the US, Europe, South Korea, and Japan. These markets have increased their imports of Vietnamese rice year after year.

The launch of Vietnam's second rice brand in Japan demonstrates Tan Long's continuous efforts to improve rice quality. In the future, Tan Long aims not only to offer ST25 and Japonica rice but also other rice varieties under the A AN brand – a Vietnamese domestic brand that will gradually conquer demanding markets such as Japan, South Korea, the United States, and Europe.

Around 2015, IR50404 rice variety still accounted for a large proportion of Vietnam's rice cultivation due to its high yield and good pest and disease resistance. However, because it was considered a lower-grade rice, Vietnamese rice prices were still lower than Thai rice. A change occurred when the Ministry of Agriculture and Rural Development recommended that localities increase the area planted with high-quality rice varieties.

ST25 rice is widely grown during the autumn-winter season. Besides its brand and quality, this year, due to unfavorable weather conditions, the harvested rice yield is insufficient to meet planned demand, leading to a continuous increase in rice prices. Since the beginning of September, ST25 rice has unexpectedly seen a sharp price increase, with Ong Cua ST25 rice alone rising by as much as 3,500 VND/kg.

Continue to improve quality, not just chase quantity.

According to data from the Ministry of Agriculture and Rural Development, in just nine months, Vietnam's rice exports exceeded 7 million tons, a 9% increase compared to the same period in 2023; export value reached nearly US$4.4 billion, a 23.5% increase compared to the same period last year. The average export price of rice reached US$624 per ton, a 13% increase.

In terms of both volume and value, these figures are higher than the multi-year average and are currently only slightly lower than the record high of 2023. Vietnam's rice harvest in the past nine months amounted to approximately 33 million tons, out of an estimated total production of 43 million tons for the whole of 2024.

Mr. Nguyen Nhu Cuong, Director of the Department of Crop Production (Ministry of Agriculture and Rural Development), said that global rice demand remains high, and India's rice exports are concentrated in a different segment than Vietnamese rice, so the impact is not significant.

"The supply of rice for export is no longer abundant, mainly consisting of rice from the Autumn-Winter crop and a small amount from the early Winter-Spring crop. Before India announced its rice export ban, Vietnam still produced over 43 million tons of paddy rice annually and exported more than 7 million tons of rice at stable prices," said Mr. Nguyen Nhu Cuong.

Mr. Nguyen Nhu Cuong also affirmed that the development perspective for the rice industry in the coming years will be based on planned production, depending on market demand, and ensuring the rights of farmers and businesses in a sustainable value chain, rather than chasing export volume for the sake of achieving targets.

Vietnam continues to hold a high position on the list of the world's rice exporting countries, with an expected production of 43 million tons in 2024. Notably, Southeast Asia has four countries among the top 10 in the world for rice exports. In this list, Thailand ranks second with 16.5 million tons, followed by Vietnam in third place with 7.6 million tons.

In 2022, 100 tons of Vietnamese rice were officially sold for the first time in supermarkets and stores in the Japanese market. With the second Vietnamese rice brand entering the Japanese market, Vietnam further affirms its determination to improve the quality of its national agricultural products and confidently conquer demanding markets. This is considered an optimistic sign not only for Tan Long Group, but also for Vietnam's rice export industry in particular and agricultural products in general.

Source: https://congthuong.vn/diem-sang-gao-viet-351400.html