Indonesia massively imports Vietnamese agricultural products

Affected by unfavorable weather, in the first 5 months of the year, Indonesia spent 15 times more money on Vietnamese rice and nearly 2 times more on coffee than in the same period last year.

Data from Vietnam Customs shows that in the first five months of the year, agricultural export turnover decreased compared to the same period last year, with major markets such as the US and EU reducing purchases. However, there are still countries that go against the flow, importing massive amounts of Vietnamese agricultural products in the first half of the year.

Among the top 10 largest importing countries - Indonesia has seen a surge in purchases of most Vietnamese agricultural products. In particular, Vietnam's main export items to this country such as seafood, vegetables, coffee, and rice all increased sharply compared to the same period in 2022.

People harvest rice in Thu Duc City (Ho Chi Minh City). Photo: Quynh Tran — People harvest rice in Thu Duc City ( Ho Chi Minh City). Photo: *Quynh Tran*

Accordingly, in 5 months, rice exports to this market reached more than 181 million USD, an increase of more than 15 times compared to the same period in 2022, accounting for 9.5% of the total export value of Vietnamese rice in the first half of the year. Indonesia rose from 8th place to the top 3 countries buying the most Vietnamese rice, after the Philippines and China.

After rice, coffee is the item that Indonesia increased its purchases with a turnover of more than 76 million USD in the first 5 months, an increase of over 185%. Next are vegetables and seafood with turnover of 2.44 million USD and 7.83 million USD, respectively, an increase of about 20% and 70% over the same period.

According to the Indonesian Ministry of Agriculture , the reason for the country's increased agricultural imports is due to the "El Nino" phenomenon that could cause drought in the country from May to July. Therefore, the Ministry forecasts that the area and output of agricultural products in the July-August harvest may decrease sharply.

Although it is the main harvest season, the country's rice and coffee procurement situation is facing many difficulties. According to the Indonesian National Logistics Agency, the country's rice procurement output is very low.

The Indonesian government has previously decided to import 2 million tons of rice reserves this year, of which 500,000 tons will be imported as soon as possible. The imported national rice reserves will be used for price stabilization programs, rice support for 21.5 million poor households and for other purposes.

In addition to Indonesia, many countries in Asia are also increasing purchases of Vietnamese agricultural products due to reduced supply caused by climate change.

According to the US Department of Agriculture (USDA), the world supply of key agricultural products such as coffee, rice, and seafood is stagnant and at risk of plummeting as "EL Nino has appeared". Therefore, the prices of these products will increase and the demand for reserves will be increased by many countries.

Thi Ha

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