Vietnam's rice exports move towards "good price, good quantity"

Rice exports hit a 34-year high. Vietnamese rice recorded a year of “double success”. This is an optimistic signal for the outlook in 2024.

According to statistics from the General Department of Customs, in December 2023, the country's rice exports reached 492,387 tons, worth nearly 339 million USD, bringing the total rice export volume of Vietnam in 2023 to 8.131 million tons, worth nearly 4.7 billion USD, up 14.4% in volume and 35.3% in value over the same period in 2022. This is the highest export result in the history of the Vietnamese rice industry.

India's rice export restrictions to stabilize the domestic market and the supply shortage in some countries due to El Nino have boosted demand and rice prices in recent times. Vietnam is one of the countries that has benefited from this market development. In November 2023 alone, Vietnam's average rice export price reached 667 USD/ton, up 4.1% compared to the previous month and up 35.2% compared to the same period in 2022. This is also the highest price ever and higher than the price of 665 USD/ton for 5% broken white rice currently offered on the market.

Mr. Ta Van Bong - Chairman of the Board of Directors and Director of Tan Binh Cooperative ( Dong Thap ) said: In the 2023 Winter-Spring crop, rice prices remained above 9,000 VND/kg, farmers were very excited, especially in the context of high input costs and high labor costs. In 2023, Tan Binh Cooperative's revenue growth reached 15 - 20%. Rice prices increased sharply, remaining at 9,000 - 11,000 VND/kg, helping farmers earn a profit of 35 - 40%. In the future, Tan Binh Cooperative will deploy safe rice production according to SRP standards, aiming at low-carbon rice production. By 2025, safe rice products will be introduced to the market, moving towards building the "Cu Lao Tay Agricultural Products" brand in the following years... "The market is increasingly interested in quality. Growing high-quality rice and producing safe food will benefit both producers and consumers. The cooperative currently has 220 hectares of organic rice, and in 2024 it is expected to expand the area to 300 - 400 hectares and aim to grow organic rice on the entire area (more than 700 hectares)," said Mr. Bong.

Positive changes in Vietnam's rice industry

Managers and experts agree that in the context of the world's rice shortage, Vietnam is also affected by climate change but less, so it can increase production. This is not only a "god-given" opportunity but also an internal strength. Vietnam's rice price is higher than Thailand's because of real investment. Vietnam is far superior to Thailand in terms of short-term, high-quality rice varieties, not "luck".

Mr. Huynh Van Thon - Chairman of Loc Troi Group commented, "In 2023, rice exports will reach 8.1 million tons, equivalent to 4.7 billion USD, an increase of 14% in volume and 35% in value compared to 2022. The rice industry has set an export record in both volume and turnover after 34 years of participating in the global market. The average export price of rice in 2023 reached 580 USD/ton, an increase of 19% compared to 2022. The position of the country, of rice grains and of farmers has all been raised. The Vietnamese rice industry has gradually transferred the bargaining power on prices from buyers to sellers".

Mr. Pham Thai Binh - Chairman of the Board of Directors of Trung An High-Tech Agriculture Joint Stock Company (Can Tho) said, "The rice export results in 2023 were good, 2024 could be better when we take advantage of market opportunities, consumption demand is still high".

Sharing the same view, according to Mr. Le Thanh Tung - Deputy Director of the Department of Crop Production (Ministry of Agriculture and Rural Development), "Whether Vietnam exports rice for 600 USD or 1,000 USD/ton, it is exporting rice or exporting resources and the efforts of farmers. To have rice for export, it is not only the efforts of farmers and businesses but also resources, infrastructure, especially the irrigation system in the Mekong Delta".

Why will Vietnam's rice exports in 2023 be outstanding?

Assessing the results of rice exports in 2023, Mr. Nguyen Nhu Cuong - Director of the Department of Crop Production said, "India's restriction on rice exports has had a major impact on the world rice market. India accounts for 40% of the world's rice exports, so India's temporary suspension of rice exports is considered an opportunity for countries and Vietnam has turned that opportunity into money to increase farmers' incomes."

According to Mr. Cuong, in addition to the high demand of the rice market, flexible direction in direction and management has contributed to the success of increasing export value. "Directive No. 24/CT-TTg of the Prime Minister dated August 5, 2023 on ensuring national food security and promoting sustainable rice production and export in the current period has become an important orientation for functional sectors and localities to focus on production and regulation," Mr. Cuong emphasized.

Agreeing with the above analysis, agricultural expert Hoang Trong Thuy added, "The outstanding results in recent rice exports are due to the fact that the Ministry of Industry and Trade, together with the Vietnam Food Association (VFA), have been closely inspecting and controlling the current status of storage, milling, purchasing facilities and logistics services for production and export. At the same time, they have directed traders to strictly implement the regulations in Decree No. 107/2018/ND-CP to ensure the maintenance of circulating reserves and effective export balance."

At the same time, the Import-Export Department also advised the Minister of Industry and Trade to issue Directive No. 07/CT-BCT on enhancing market information, promoting trade, developing rice export markets and stabilizing the domestic market. On the other hand, the Ministry of Industry and Trade actively negotiated and exchanged bilaterally with traditional and key import partners (Malaysia, Philippines) to consider signing a Memorandum of Understanding on rice trade.

At the same time, we organized a Rice Trade Delegation to the Chinese market to maintain, consolidate and expand the market share of rice products in this market. It can be said that this year, our rice industry has taken advantage of market opportunities, turning opportunities into income for rice farmers and profits for rice production and export businesses.

Effective direction for rice export prospects in 2024

Economist Dinh Trong Thinh assessed that when the market door has opened, there are still technical barriers, the story of green standards, or greening production is the message mentioned throughout 2023. "We also hope that in 2024, businesses can transform and meet the greening standards set by the markets, thereby boosting export activities in traditional markets and expanding in markets where we have signed FTAs. At that time, Vietnam will achieve higher import-export growth in 2024", emphasized economist Dinh Trong Thinh.

According to statistics, in the first half of January 2024, the country exported 194,074 tons of rice, with a turnover of 134.57 million USD. Compared to the same period in 2023, the amount of exported rice decreased by nearly 32,000 tons, however, the turnover increased by nearly 20 million USD. Notably, in the first half of January 2024, each ton of exported rice earned an average of about 693 USD, while in the same period last year it was only about 507 USD/ton. Thus, the average rice export value increased by 36.68%.

2024 is a year of acceleration and breakthrough, which is of special importance in successfully implementing the 5-year socio-economic development plan 2021 - 2025. The world and regional situation will continue to have complex and unpredictable developments; the consequences of the COVID-19 pandemic will have a long-term impact. Strategic competition among major countries is increasingly fierce, global economic growth, trade and investment continue to decline. Inflation and monetary policies of some major economies still contain uncertain factors. Orders have recovered but goods exports face new challenges, in which the "stormy" Red Sea is a hot issue for businesses.

In the context of the above-mentioned difficulties and challenges, one of the tasks specified in Resolution 01/NQ-CP dated January 5, 2024 of the Government is to strengthen trade promotion activities; continue to diversify export markets, products, and supply chains; consolidate and expand the market share of Vietnamese goods in traditional markets; create a breakthrough in expanding new potential export markets; prioritize exploiting and making the most of opportunities from key and strategic export markets.

Rice prices are expected to rise further in 2024 due to tight supplies. The rice market is expected to tighten further early in the year due to India’s ongoing export restrictions. Meanwhile, demand is expected to increase during the Tet holiday. These factors will drive rice prices higher.

Faced with that situation, Director of the Department of Crop Production Nguyen Nhu Cuong said, "Although the rice area tends to decrease, in the 2024 production plan, the crop production industry still aims to maintain the rice planting area at 7.1 million hectares, rice output at over 43 million tons; ensuring exports of 8 million tons of rice or more."

According to Nguyen Cung/VTV

Source: https://doanhnghiepvn.vn/kinh-te/lua-gao-viet-nam-tien-toi-xuat-khau-duoc-gia-duoc-luong/20240317074811411