Loading and unloading, transporting export rice at Vinh Phat Rice Co., Ltd in Long Xuyen city (An Giang). (Photo: Vu Sinh/VNA)
Rice exports maintained a decent growth thanks to both price and volume. The market is forecasted to have many positive signs for Vietnam's rice exports.
Vietnam's rice exports continue to realize the goal of targeting the high-end market when the Strategy to develop Vietnam's rice export market until 2030 has just been approved by the Prime Minister recently.
The strategy has set the goal of improving the value of rice exports, reducing the export volume by 2030 to about 4 million tons with a turnover equivalent to about 2,62 billion USD.
According to the Ministry of Agriculture and Rural Development, the volume of rice exported in May 5 is estimated at 2023 million tons with a value of 1 million USD, bringing the total volume and value of rice exports in the first five months of 489 to nearly 5 million tons and 2023 billion USD, up 3,9% in volume and 2,02% in value over the same period in 40,8.
The average export price of rice in the 5 months of 2023 is estimated at 517 USD/ton, up 5,8% over the same period in 2022. In the 4 months of 2023, the Philippines is Vietnam's largest rice consuming market with a market share of 42,4%, reaching 1,29 million tons with 647,5 million USD, up 40,6% in volume and 53,4% in value over the same period in 2022.
Among the 15 largest rice export markets, the one with the strongest increase in value is Indonesia, 26,3 times higher. In contrast, the market with the largest decrease in rice export value was Ivory Coast (down 49,8%).
According to Mr. Pham Thai Binh - General Director of Trung An High-Tech Agriculture Joint Stock Company, this year, exports to all markets have grown and with all types of rice. With the rather complicated situation of the world, Vietnamese rice continues to have the opportunity to export as well as prolong its growth.
In fact, the amount of food in the world is decreasing. When climate change is extreme, it is difficult to improve world food; while Vietnam is not strongly affected by climate change like many other countries.
Mr. Pham Thai Binh also said that the inventory of rice is not high. Goods produced to the beginning are consumed there. The quantity of goods produced is quite high, but they are all well consumed because the world's food trade declines, and there is not even enough rice to sell.
Along with that, fragrant rice, high quality rice is also increasing. According to the Department of Crop Production, since the beginning of the year, the unit has issued 157 certificates with over 14.000 tons of rice to enjoy preferential tariffs when exporting rice to the European Union (EU) market.
According to Vietnam's rice export market development strategy to 2030, Vietnam's rice industry will also increase exports of high-quality rice.
Specifically, in the period of 2023-2025, the proportion of low- and medium-grade white rice will account for no more than 15%; high-grade white rice accounts for about 20%; fragrant rice, japonica rice, and specialty rice account for about 40%… The proportion of branded rice exported is over 20%.
In the period 2026-2030, the proportion of low- and medium-grade white rice will account for no more than 10%; high-grade white rice accounts for about 15%; fragrant rice, japonica rice, specialty rice account for about 45%; Glutinous rice accounts for about 20%.
Rice products with high added value such as nutritious rice, parboiled rice, organic rice, rice flour, processed rice products, rice bran and some other rice by-products account for about 10%. The percentage of exported rice with brand names is over 40%.
The strategy also aims to increase the proportion of rice exported directly to the distribution systems of the markets to about 60%; improve export efficiency through intermediary channels, especially for markets that are not convenient in transportation and payment.
With the strategy, Mr. Nguyen Van Thanh, Chairman of the Board of Directors and General Director of Phuoc Thanh IV Production and Trading Company Limited, said that the adjustment of "quantity" to increase "quality" is an appropriate strategy.
Because rice production in the key region of the country, the Mekong Delta, has changed, from three crops to two, or from two to one. Even a large part of the rice production area has been converted to fruit trees and aquaculture by farmers.
According to Mr. Pham Thai Binh, along with the strategy, the Ministry of Agriculture and Rural Development is also submitting to the Prime Minister for approval the Project of Sustainable Development of 1 million hectares of high-quality specialized rice associated with green growth in the Mekong Delta, the orientation to increase value and reduce export output is correct.
At that time, by 2030, although exporting only 4 million tons of rice, the value will still reach 3,5-4 billion USD without having to export 6,5-7 million tons of rice as today. Besides, when producing to get 6,5-7 million tons of rice will also generate much larger greenhouse gas emissions than producing only 4 million tons of rice. This is an environmental value that is difficult to calculate, Mr. Pham Thai Binh assessed.
Dong Thap farmers harvest rice. (Photo: Chuong Dai/VNA)
According to experts, deep processing is the way to increase the value of Vietnamese rice grains many times over. However, in order for processed products to be present in Europe, the US, Canada, Japan, Korea, etc., it requires investment in technology, science and technology.
“Increasing export value will require more processed products. Because this not only reduces the output of rice for export, but still has a high value. Even Trung An company has increased the production of vermicelli and pho products ... to export to the EU," said Mr. Pham Thai Binh.
With the goal of having about 25% of rice exported directly under the Vietnam Rice/Vietnam Rice brand by 2030, Mr. Pham Thai Binh said that this is still a low target.
If the Project of Sustainable Development of 1 million hectares of high-quality specialized rice associated with green growth in the Mekong Delta is approved, the rate of branded rice will be higher. Because, the rice produced under the project can also exceed the above goal. Even rice products have both national brands and low emission certificates.
According to Deputy Minister of Agriculture and Rural Development Phung Duc Tien, Vietnam has 85% high quality rice varieties; 89% is high quality rice. Therefore, the price of Vietnamese rice has surpassed Thai rice, reaching from 485-495 USD/ton.
Deputy Minister Phung Duc Tien said that Vietnam's quality is a requirement of the supply chain. Research projects on rice have so far met the requirements of ecological regions. High-yield, high-quality rice varieties almost cover the region.
However, in the face of market requirements, free trade agreements, research and breeding of new varieties with high yield, low cost, high quality, good competition, are bringing increasing efficiency in rice production. Especially, Vietnam's food security is completely assured.
