ANTD.VN - As of August 23, 2023, Vietnam's rice price is the highest in the world, higher than Thailand's rice price. Currently, the world's demand for rice continues to increase. This is a great opportunity for export but risks still need to be guarded against.
There are about 2.67 million tons of rice left for export.
According to the Vietnam Food Association, at the end of the trading session on August 23, Vietnam's rice export price maintained its highest position in the world. Accordingly, the price of 5% broken rice was at 638 USD/ton; 25% broken rice was at 623 USD/ton. Domestic rice prices continued to increase but rice prices tended to decrease in the following days.
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Vietnam expects to export more than 7 million tons of rice in 2023 |
In Hanoi, rice prices at markets increased by about 1,000 - 2,000 VND/kg, depending on the type. At supermarkets, rice prices remain stable. Domestic rice supply is abundant, with no signs of shortage. In the world market, rice demand is still increasing. Mr. Nguyen Canh Cuong - Counselor, Trade Office of Vietnam in the UK said that with a community of more than 5.5 million people of Asian origin, the demand for rice consumption in the UK is very large while this country does not grow rice at all, all consumption needs must be imported. In 2022, the UK imported 3,399 tons of rice from Vietnam, an increase of 24.5% compared to 2021, with an export value of more than 3.7 million USD, an increase of 34% compared to 2021. Vietnam is currently the 14th largest rice exporter to the UK, but its market share is quite modest (0.6%).
Vietnamese rice in the UK is mainly sold to the Vietnamese community and partly to the Chinese, Thai, Malaysian and Filipino communities at retail prices in supermarkets at 58,000 - 72,000 VND/kg. Popular Vietnamese rice brands in the UK are fragrant rice, broken rice, sticky rice, ST25 (Mr. Cua rice). “Despite being a major rice exporter in the world, Vietnamese rice exported to the UK as well as many other countries is often sold under the brands of distributors, making consumers unaware of the origin of the rice from Vietnam. Therefore, building a brand is a long-term solution for Vietnamese rice to maintain its market share in the UK once the quality of Vietnamese rice has won over consumers.
"If we actively market professionally, including promoting on local media in English, Vietnamese rice exporters will certainly increase their market share in the UK, including the market segment of restaurants serving Asian tourists, which accounts for a significant number of the tens of millions of tourists coming to the UK each year," said Mr. Nguyen Canh Cuong, adding that the current time is very favorable for Vietnamese rice to enter the UK market, especially thanks to the competitive advantage of the UKVFTA Agreement. Exporters need to take advantage of the "golden opportunity" to request rice distributors in the UK to use the Vietnamese rice brand, instead of the distributor's brand, helping to raise awareness of British consumers about Vietnamese rice.
According to the Ministry of Agriculture and Rural Development, in 2023, the whole country will cultivate 7.1 million hectares, with an average yield of 6.07 tons/ha and an output of over 43.1 million tons, an increase of 452,000 tons compared to 2022. With the above expected rice output, in addition to ensuring domestic food security, processing, breeding, and livestock farming, Vietnam can export over 7.5 million tons of rice in 2023. In the first 7 months of 2023, 4.83 million tons were exported, with about 2.67 million tons remaining for export in the remaining 5 months of 2023.
Controlling domestic rice price increase
Associate Professor, Dr. Dinh Trong Thinh - Academy of Finance said that the price of Vietnamese rice is currently the most expensive in the world, first of all, this is good news, because up to now, the price of Vietnamese rice has always been lower than the price of Thai rice. However, the high export price of rice will also push up the domestic rice price. Therefore, businesses need to consider and calculate how to do it reasonably. "With such a high rice price, farmers should benefit the most, but in reality, this may not be the case. Another issue that businesses need to pay attention to is that this price fluctuation only occurs in a short time, increasing and standing at a very high level but then decreasing and returning to equilibrium.
This level is often much lower than the peak level. Therefore, businesses need to be very careful, if businesses are not alert, "chasing the peak" will lead to "old age breaking the rope" - Associate Professor, Dr. Dinh Trong Thinh analyzed - "In addition to promoting rice exports, rice storage is also necessary, storing just enough, otherwise, when the new crop season comes, the rice market returns to normal, rice in warehouses cannot be sold at high prices, causing damage to businesses and the rice industry. In addition, it is necessary to prevent violations of price listing, speculation, hoarding, and unreasonable pricing of rice products".
Commenting on the recent rice market, market expert Vu Vinh Phu said that not only people but also businesses are happy because revenue and profits from rice exports have increased - "The most encouraging thing is that although the world rice market has fluctuated greatly, the domestic consumer market has remained stable. From the above, it can be seen that this is a positive signal contributing to promoting our economy from now until the end of the year, especially during this difficult period."
However, Mr. Vu Vinh Phu said that it is necessary to pay attention to information that the market has begun to have a phenomenon of buying rice for speculation, waiting for the price to increase to make a profit. “Rice accounts for the majority of the “basket” of goods used to calculate the CPI. Therefore, it is necessary to control well, not to let the price of rice increase suddenly, affecting and disrupting people's lives. Rice is an essential commodity, if the price suddenly increases, it will cause many other commodities to increase, such as vermicelli, pho, and services. In the past, services were considered to increase the fastest but almost never decreased. With this concern, from the Government to ministries, departments, branches, businesses, and people must take into account and join hands to control it,” said Mr. Vu Vinh Phu.
Along with that, it is necessary to find the most effective way to improve the capacity of exporting rice to the international market, from perfecting the production chain, applying science and technology to the warehouse system and export seaports. Furthermore, according to Mr. Vu Vinh Phu, we can create a rice export industry, even turning Vietnam into the world's rice export center.
Associate Professor Dr. Ngo Tri Long also said that although world rice prices have increased, in Vietnam, in recent days, rice prices on the market have not fluctuated much, especially in supermarkets and price stabilization points of sale. This result is partly due to the fact that in recent times, the system of supermarkets and price stabilization points of sale have strictly implemented the direction of the Ministry of Industry and Trade in stabilizing the prices of essential goods, including rice.
Strengthen inspection and control of rice market
The General Department of Market Management (GMS), Ministry of Industry and Trade has sent an official dispatch to the Market Management Departments of provinces and centrally-run cities on strengthening inspection and handling of violations of speculation, hoarding, and unreasonable pricing of rice. In particular, the GMS requires local Market Management Departments to strengthen local management, deploy professional measures to grasp the market situation, supply - demand developments, and selling prices of rice in order to develop inspection and supervision plans and propose solutions to contribute to market stabilization; Proactively coordinate with local authorities to closely monitor the rice price market, inspect and control business establishments, wholesale and retail outlets, markets, supermarkets, trade centers, and warehouses to control supply and selling prices, and prevent violations of price listing, speculation, hoarding, and unreasonable purchase and selling prices of rice; At the same time, it is necessary to strengthen inspection and prevent the transportation and trading of rice of unknown origin and strictly handle organizations and individuals who violate the law, in order to contribute to ensuring national food security and promoting sustainable rice production and export.
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