Source: nld.com.vn
According to the Ministry of Agriculture and Rural Development (MARD), in June, rice exports were estimated at 650,000 tons, earning 416 million USD. In the first 6 months of the year, the total volume of rice exports reached 4.68 million tons, equivalent to a turnover of 2.98 billion USD, up 10.4% in volume and 32% in value over the same period in 2023.
New record
This is a new record for Vietnam’s rice exports. The average export price of rice in the first 6 months of 2024 is estimated at 636 USD/ton, up 19.5% over the same period in 2023 – a good sign when rice exports not only increase in quantity but also in price.
According to customs statistics, in the first 6 months of the year, many of Vietnam’s top 10 rice export markets recorded strong growth, such as: the Philippines increased by 12% (reaching more than 1.9 million tons); Indonesia increased by 44% (nearly 709,000 tons); Malaysia increased by 134% (nearly 458,000 tons); Cuba increased by 287% (nearly 147,000 tons); Singapore increased by 44% (91,000 tons). Some high-end markets such as the US also increased by 4% (17,000 tons); Australia increased by 13% (16,500 tons); Canada increased by 2% (7,200 tons). Notably, in the top 30 markets importing the most rice from Vietnam, there were four-digit growth: Libya increased by 9,513% (reaching more than 20,000 tons) and Ukraine increased by 3,856% (more than 10,000 tons).
In particular, many export markets have higher average selling prices, such as: Brunei at 959 USD/ton, USA at 868 USD/ton, Netherlands at 857 USD/ton, Ukraine at 847 USD/ton, Iraq at 836 USD/ton, Türkiye at 831 USD/ton…
Ms. Duong Thanh Thao, Deputy Director of Ong Tho Rice Joint Stock Company (HCMC), said that the company is exporting ST25 rice to the US and Australia at a selling price of up to 1,200 – 1,250 USD/ton, packaged in 5 kg bags. “In addition to products under the company’s brand, we also process for partners and always choose high-standard ST25 rice to satisfy consumers.
Sometimes, customers want to increase their purchase volume but we cannot meet the demand because we do not have a sufficient supply of quality. We always want to maintain the quality and price of exported rice, but in reality, there are still units exporting ST25 rice at a lower price. In each container of exported ST25 rice, some customers even order a little red rice, purple rice, and glutinous rice at a unit price of 2-3 USD/kg” – Ms. Thao revealed.
The CEO of a rice trading company in Ho Chi Minh City said that his company mainly exports rice to Singapore and the Middle East. Of which, ST25 rice has a unit price of about 1,000 USD/ton; DT8 rice and Jasmine rice are at 600 – 700 USD/ton.
“Compared to the peak price in August and September last year, rice prices have decreased, but the general level is still higher than previous years. In recent months, when shipping costs increased, buyers offered to share the cost, which cooled down the rice price a bit,” said this representative.
End of year unknown
Mr. Nguyen Van Don, Chairman of the Board of Directors of Viet Hung Company Limited (Tien Giang), informed that the main markets for Vietnamese rice are Asia and Africa, while the European and American markets are very low. Therefore, although the selling price of rice to the US and Europe is high, the output is low. “The factors that can greatly affect Vietnam’s rice exports from now until the end of the year are when India will lift the ban on rice exports and how the rice import policy of the largest buyer, the Philippines (accounting for 45% of the market share), will change? Therefore, rice exports from now until the end of the year have many unknowns,” Mr. Don analyzed.
Another factor is that the Chinese market, once the largest customer of Vietnam’s rice industry, is reducing its rice imports. In the first 6 months of the year, this country imported only more than 215,000 tons of rice, down 68% compared to the same period last year and ranked 5th among the largest rice import markets of Vietnam.
Notably, China only buys ST24, ST25 and glutinous rice, not regular rice as before. The reason given by customers is that the price is high and China’s rice reserves still meet the demand in this segment.
Regarding the Philippine rice market, on July 8, the Vietnam Trade Office in the Philippines reported that in early July, Philippine farmers filed a complaint asking the country’s Supreme Court to declare Decree 62 on reducing import tax on agricultural products, including rice, from 35% to 15% unconstitutional. This incident could affect the implementation of Decree 62 and the prospects of Vietnam’s rice exports to the Philippines.
Also on July 8, the Vietnam Trade Office in Indonesia issued a warning that Vietnamese rice exports to the Indonesian market may face disadvantages because the National Logistics Agency – Bulog (the agency assigned to purchase international rice contracts by the Indonesian Government) and the National Food Agency of Indonesia were sued by a civil organization, People’s Democracy Study (SDR), to the National Anti-Corruption Commission (KPU) for alleged corruption in rice purchases.
The Vietnamese Trade Office in Indonesia believes that this will likely seriously affect Indonesia’s rice purchases from Vietnam from now until the end of 2024 or until the case is investigated and clarified.
From this unfortunate incident, the Vietnam Trade Office in Indonesia recommends that Vietnamese rice exporting enterprises need to be cautious in any transactions and statements; compete fairly, and not let it affect Vietnam’s rice exports.
According to statistics from the General Department of Customs, Indonesia is the second largest export market for Vietnamese rice in the first 5 months of 2024, accounting for nearly 17% of the total volume and total export turnover of rice of the whole country.
Meanwhile, a leader of the Vietnam Food Association (VFA) said that if India lifts the ban on rice exports, they will also do it skillfully so that rice prices do not “collapse”, otherwise it will cause damage to many parties. Moreover, in the past, India also exported rice through government channels and exported high-quality rice (with taxes) instead of completely banning it, so the inventory is not at a level that needs to be worried.
As for businesses, this year rice exports are more stable, without the sudden price increases that disrupted the supply chain like last year. Therefore, overall, this year’s rice exports are more stable. Furthermore, because in the first 6 months of the year, Vietnam increased its rice exports by 10%, there is no concern about inventory, and the rice output in the last months of the year is not too much to face pressure on consumption.
