Rice exports flourish: Ministry of Industry and Trade affirms flexible and timely management role

Rice exports increase sharply

According to inter-ministerial data, it is estimated that by the end of October 2023, Vietnam will export 7.1 million tons of rice with a value of about 3.97 billion USD, up 17% in volume and 34.9% in value over the same period in 2022. The average export price is estimated at 558 USD/ton, up 15.3% over the same period in 2022.

Rice exports have many improvements

Regarding the structure of rice export markets by region, in the first 9 months of 2023, the Asian market accounted for 76% of total rice exports (up 31.6%), Africa accounted for nearly 17% of total rice exports (up 10.8%), America and Europe accounted for 1.5% and 1.6% of total rice exports, respectively, Australia had strong growth (17.5%) over the same period, accounting for 2.41% of total rice exports.

In the first 9 months of 2023, the Philippines continued to be Vietnam's largest rice import market, reaching nearly 2.5 million tons, accounting for 38.1% of total rice exports, up 0.8%; Indonesia ranked second, reaching 884.3 thousand tons, accounting for 13.7% of the country's total rice exports (a sharp increase of nearly 17 times in volume and turnover); China - a strong growth market, reaching nearly 860 thousand tons, accounting for over 13.4%, up 41.1%; Ghana reached 503.7 thousand tons, accounting for 7.84%, up 55%; Ivory Coast reached 392 thousand tons, accounting for 6.11%, down 28% over the same period in 2022.

Notably, the structure of rice varieties and quality of exported rice continue to follow the direction of the Strategy for developing the rice export market to 2030, which aims to increase the value of rice grains.

The white rice variety still accounts for the largest proportion, reaching about 55.5% of total export volume (equivalent to about 3.56 million tons); followed by fragrant rice of all kinds, accounting for about 24% of total export volume (about 1.5 million tons); glutinous rice is in third place, accounting for about 8.5% of total export volume (about 545 thousand tons); broken rice accounts for 7.6% of total export volume (about 487 thousand tons).

Timely information, empowering businesses to take the initiative

It can be said that the recent rice export results are largely due to the management of ministries and branches, including the Ministry of Industry and Trade.

Accordingly, implementing the Prime Minister's direction in Official Dispatch No. 610/CD-TTg dated July 3, 2023 on strengthening the implementation of tasks and solutions to promote rice production and export and Directive No. 24/CT-TTg dated August 5, 2023, in the face of complicated developments in global food trade (India's ban on exporting regular white rice - non-basmati, Russia's withdrawal from the Black Sea Grain Agreement, climate change phenomenon - El Nino), the Ministry of Industry and Trade has presided over and coordinated with the Ministry of Agriculture and Rural Development , People's Committees of localities with raw material production areas, the Vietnam Food Association and rice export traders to deploy many solutions on rice export management in 2023.

Specifically, in response to India's unexpected move, the Ministry of Industry and Trade immediately issued documents requesting VFA and rice exporters to: i) strictly implement the provisions of Decree No. 107/2018/ND-CP to ensure the maintenance of circulating reserves, effectively balance exports, and contribute to stabilizing the domestic rice market; ii) proactively monitor the market situation and propose solutions related to rice export activities. Thanks to the initiative given to businesses, many businesses have seized the opportunity and achieved high results in rice export activities.

Not only paying attention to the rice export market, following the widespread reaction from India's policy, in order to ensure domestic supply, some countries have issued policies to restrict rice exports, in order to promptly orient the market work and rice export activities, on August 4, 2023, the Ministry of Industry and Trade chaired and coordinated with the Ministry of Agriculture and Rural Development, Can Tho City People's Committee to organize a Conference to deploy rice export management tasks in 2023.

As the agency assigned to manage rice export activities, the Ministry of Industry and Trade continues to coordinate with ministries, departments, branches, and VFA to closely monitor the situation of rice production and fluctuations in the world rice market to promptly remove difficulties and obstacles for businesses, creating favorable conditions to promote the development of rice production, business, and export.

In addition, according to the functions and tasks assigned in Decree No. 107/2018/ND-CP dated August 15, 2023, the Ministry of Industry and Trade has closely coordinated with the Ministry of Agriculture and Rural Development to request VFA to provide information on production plans, seasons, and variety structures so that localities and traders can proactively organize and develop plans to link raw material areas for the production of rice and commodity rice for export.

Previously, in the context of the world rice trade situation continuing to be complicated, right from the Winter-Spring crop, the Ministry of Industry and Trade held a meeting with the Ministry of Agriculture and Rural Development, the Vietnam Food Association and 30 largest rice exporters to assess the production situation of the 2022-2023 Winter-Spring crop, the production implementation plan and discuss solutions for rice export orientation in 2023.

Based on the opinions exchanged at the meeting, on March 14, 2023, the Ministry of Industry and Trade reported to the Prime Minister on the results of rice exports in 2022 and the direction of rice exports in 2023. At the same time, to ensure that rice exports continue to move in the right direction in the second quarter of 2023, the Ministry of Industry and Trade has proposed to the Government solutions on rice exports to effectively implement the goals of rice export management by the end of 2023.

Strengthening rice trade promotion

In particular, implementing Directive No. 24/CT-TTg dated August 5, 2023 of the Prime Minister on ensuring national food security and promoting sustainable rice production and export in the current period, on August 15, 2023, the Ministry of Industry and Trade issued Directive No. 07/CT-BCT on strengthening market information, trade promotion, developing rice export markets and stabilizing the domestic market in the current period.

Accordingly, the Minister of Industry and Trade has assigned specific tasks to functional units under the Ministry of Industry and Trade, local Departments of Industry and Trade, the Vietnam Food Association and rice export traders to promote information work, search for and develop rice export markets while ensuring the maintenance of circulation reserves, stabilizing the domestic market, promptly proposing solutions and reporting to the Ministry of Industry and Trade.

Regarding the strict implementation of the reporting regime and maintenance of circulating reserves to serve the management of rice export, the Ministry of Industry and Trade has continuously issued documents requesting the Vietnam Food Association and rice export traders to strictly implement the reporting regimes prescribed in Decree No. 107/2018/ND-CP mentioned above and regularly maintain the minimum circulating reserves as prescribed, promptly reporting to the Ministry of Industry and Trade.

In particular, the Ministry of Industry and Trade regularly reviews and inspects rice export business activities of traders according to its assigned responsibilities. Accordingly, after reviewing and reaching consensus with the General Department of Customs and localities with rice exporters, the Ministry of Industry and Trade issued a Decision to revoke the Rice Export Business Certificate for 28 traders who did not export rice for 18 consecutive months after being granted the Rice Export Business Certificate in order to create a public, transparent, fair and compliant business environment in accordance with the provisions of law.

Currently, the Ministry of Industry and Trade is researching and amending Decree 107/2018 on rice export business to create a transparent and fair legal corridor for all exporting enterprises in this industry.

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