At the beginning of May 2021, the Thai Government reduced export tax rice to the EU and UK markets. This move comes at a time when Thai rice export prices are losing their No. 1 position compared to competitors, and is expected by Thailand to contribute to increasing competitiveness when Vietnam is launching many rice product lines. High-class, quality, suitable price, meet the requirements of importers.
“Nothing terrible”?
According to a market analyst, the Philippines’ reduction of rice import tax is only slightly more pressure on Vietnam’s rice exports, but nothing is “terrible”, because the Philippines reduces rice import tax to reduce the price of imported rice. , helping food security, but their goal is to attract more cheap rice from India to compete with imported rice from Vietnam.
According to Mr. Nguyen Van Thanh, Chairman and General Director of Phuoc Thanh IV Production and Trading Company, the Philippines’ rice import tax for countries in ASEAN is almost the same, while for India, it is not the same. As a member of ASEAN, there are tax barriers, for example, there is a 42% rice import tax, there are also taxable rice varieties up to 72%. Recently the Philippine government wants to reduce import tax on cheap Indian rice to cater to the poor. Therefore, the Philippines reduces import tax on rice for non-ASEAN countries is nothing to worry about.
“Unlike the Indian low-priced rice segment, currently Vietnam only sells to the Philippines medium-to-high-end rice, the major cities of the Philippines buy high-grade Vietnamese rice. Vietnam has 3 rice crops per year, there is always new rice and Filipino consumers love the new source of Vietnamese rice.
Second, shipping from Vietnam to the Philippines is very close. After we finished negotiating to sell 5-10 thousand tons and after shipping the goods within 3-4 days, it was to the Philippine port. If importing rice from India, it is very difficult to transport and the cost is higher and other procedures are also more difficult than Vietnam.
Thailand is in the same ASEAN region, but due to its geographical conditions and delivery capacity, it is not as good as Vietnam, even India. If 10 or 20 years ago, Vietnam went to other countries to study, but now when it comes to rice delivery and processing capacity, Vietnam is almost No. 1 and countries are studying again in Vietnam, “said Thanh. .
Philippines is still the main market
According to preliminary statistics of the General Department of Customs, April 2021 rice exports reached 782,159 tons, worth $424.22 million, up 53.3% in volume compared to April 2020 and 66.8% in volume. turnover. The export price of rice in April 2021 averaged 542.4 USD/ton, up 0.5% over the previous month and 8.8% higher than in April 2020.
This is the second consecutive month that rice exports have grown in both volume and value compared to the previous month, with an increase of over 45% in both volume and value.
In the first 4 months of 2021, the country’s rice exports reached over 1.93 million tons, earning over 1.07 billion USD, down 6.4% in volume but up 8.2% in turnover compared to 4 months. May 2020. The average export price increased by 15.6%, reaching 543.4 USD/ton.
In the first 4 months of the year, the Philippines was still the main export market and reached 715,717 tons, equivalent to US$381.44 million, down 20.7% in volume and 4.9% in turnover over the same period in 2020. accounting for 36% of the total volume and total export turnover of rice of the country. Export price to this market increased by 19.8% over the same period, reaching 533 USD/ton.
The second largest market is China, accounting for over 18% of the country’s total rice export volume and turnover, reaching 369,161 tons, equivalent to USD 194.12 million, up 35% in volume and 22.8% in turnover over the same period. Export price reached 525.8 USD/ton, down 9%.
Ghana ranked third, with 209,875 tons, equivalent to 122.67 million USD, accounting for 11% of the total volume and total turnover, a sharp increase of 69% in volume and 104.5% in turnover over the same period.
Rice exports in the first 4 months of 2021 (According to the General Department of Customs)
In the first 4 months of 2021, rice exports to most markets increased in both volume and value over the same period last year. Notably, exports to the Bangladesh market, although ranked 6th in turnover, with an export volume of 42,875 tons, equivalent to 25.94 million USD, but compared to the first four months of 2020, a very strong increase of 29,266% in volume. and increased 36,161% in turnover (the same period last year only reached 146 tons, equivalent to 71,530 USD).
According to the Department of Agricultural Product Processing and Market Development (Agrotrade), in terms of export categories, in the first quarter of 2021, the export value of white rice accounted for 39.3% of the total turnover; jasmine rice and fragrant rice accounted for 36.0%; sticky rice accounted for 22.0%; japonica rice and Japanese rice varieties accounted for 2.6%, while other types of rice accounted for 0.1%.
The largest white rice export markets of Vietnam are the Philippines (63.1%), Cuba (12.6%) and Malaysia (5.7%). For jasmine rice and fragrant rice, the largest export markets are the Philippines (21.9%), Ghana (19.8%) and Ivory Coast (16.8%). For glutinous rice, the major export markets are China (82.5%), Malaysia (6.7%) and the Philippines (4.3%). With japonica rice and Japanese rice varieties, the largest and second largest export markets of Vietnam are Solomon Islands (11.8 percent) and Cambodia (11.8 percent), followed by Saudi Arabia (accounting for 8 percent). .7%).
In the world market, in April 2021, the price of Vietnamese rice reached 508 USD/ton at the beginning of the month and fell to 488 USD/ton at the end of the month. The main reason is that the winter-spring crop has been harvested, so the demand for raw materials has decreased, waiting for the upcoming summer-autumn crop.
Currently, Vietnam’s export rice of 5% broken type is about 30 USD / ton higher than the same rice of Thailand. Specifically, Vietnam’s 5% broken rice is offered for sale from 493 to 497 USD/ton; 25% plate price ranges from 468 – 472 USD/ton, 100% plate price ranges from 423 – 427 USD/ton.
Thai rice 5% broken price from 463 to 467 USD/ton, down 5 USD/ton; Indian 5% broken rice costs 393 – 402 USD/ton, Pakistani 5% broken rice costs 438 – 442 USD/ton. Myanmar 5% broken rice 418 – 422 USD/ton.
