Rice exports likely to reach US$3.5 billion this year

8852

Vietnam is anticipated to rake in roughly US$3.5 billion from exporting more than seven million tonnes of rice this year, according to industry insiders.

The export price of Vietnamese rice in November maintained its position as the highest in the world, surpassing that of Thailand.

According to the Vietnam Food Association (VFA), the export price of 5% broken rice stood at US$438 per tonne, up US$10 per tonne, while 25% broken rice was traded at US$418 per tonne, up US$10 per tonne.

Pham Thai Binh, general director of Trung An High-Tech Agriculture Joint Stock Company, said that several demanding markets have chosen Vietnamese rice thanks to the country’s efforts to develop new rice varieties and improve production processes.

He also revealed that his company has signed contracts to supply rice to markets such as Europe, America, the Republic of Korea, and Singapore next year.

Meanwhile, Phan Van Co, marketing director of Vrice Co., Ltd., said the export price of fragrant rice in the Middle East and European market has hit US$600 per tonne, while Japonica rice is also being sold at up to US$700 per tonne.

Co attributed the high export price to a decline in the global supply source as a result of a range of factors, including political conflicts, high inflation, the COVID-19 pandemic, and climate change.

Furthermore, China, a major rice exporter, has limited its exports due to the adverse impact of the COVID-19 pandemic.

Moreover, India has recently banned the export of broken rice and restricted exports of white 5% broken rice, a move which has also served to push up the export price of Vietnamese rice.

Co anticipated that the price of Vietnamese rice in the coming months would stay  high and would continue to increase.

Experts said following the enforcement of free trade agreements (FTAs), Vietnamese rice exporters are expected to enjoy incentives and seize upon the opportunities to compete with regional rivals such as Thailand, Cambodia, and Myanmar.

According to the Ministry of Agriculture and Rural Development, Vietnam exported over six million tonnes of rice worth US$2.9 million during the initial 10 months of the year, up 17% in volume and 8% in value year on year.

Most notably, rice exports to demanding markets such as the United States and the EU recorded high growth, with respective rises of 85% and 82%.

Experts suggested Vietnamese enterprises develop rice brands and strengthen connectivity in order to maintain the high export price in the international market.

For more information, please contact Vietnam Trade Office in Singapore at [email protected]