[NEWS] - Rice exports continue to prosper

Only in the first 5 months of this year, rice exports reached about 3.62 million tons, which is a rare commodity with an increase in export turnover in the current difficult context. 

Rice exports increase both volume and price

The latest data from the General Department of Customs shows that the amount of rice exported in the first 5 months of 2023 has reached about 3.62 million tons, a fairly high increase compared to the same period in previous years (in 2018 it was 2.945 million tons). in 2019 is 2,756 million tons, in 2021 is 2,591 million tons, and in 2022 it will reach 2.767 million tons...).

The export unit price in May at the beginning of this year increased quite high compared to the same period in previous years, reaching about $529.4/ton (US 505.1 in 2018, US 429.1 in 2019, and US 489 in 2022. /ton). The increase in unit price is due to the increase in world demand while the war between Russia and Ukraine causes food prices to rise. This is because the quality structure of our country has improved.

The export turnover of rice products has the highest scale over the same period of years (US$1.488 billion in 2018, US$1.185 billion in 2019, US$1.406 billion in 2021, US$1.906 billion compared with US$1,353 billion in the year). 2022…). This 5-month year-on-year increase is unusually high (up to 563 million USD) due to increased quantity, increased price, and higher quality rice structure.

General Director of Trung An High-Tech Agriculture Joint Stock Company, Mr. Pham Thai Binh, said that in April, the company also won the bid to export 11,347 tons of long grain rice to the Korean market at a good price. of nearly 600 USD/ton.

Thus, up to the beginning of the year, the company has exported more than 5,000 tons of rice to the European market, and about 32,000 tons to Korea; Besides, exporting to markets: Malaysia, the Middle East, and China...

Rice exports to the European market with aromatic rice varieties with the highest price of 1,250 USD/ton, and the lowest of about 700 USD/ton. In Korea, the export price also reached 595 USD/ton. This is a high price in recent years.

According to the Vietnam Food Association, currently, the price of Vietnamese rice is still higher than that of Thailand and India. Specifically, the price of 5% broken rice in Vietnam in the first weeks of June 2023 reached about 498 USD/ton, while the price of rice in Thailand and India was about 492 USD/ton and 453 USD/ton, respectively. Vietnam’s 25% broken rice also recorded a price of 478 USD/ton, about 10 USD/ton higher than Thailand’s and about 50 USD/ton higher than India’s.

Notably, when the price of Vietnamese rice is usually stable at a high level, the price of rice in Thailand and India also fluctuates daily. Thus, in part, it can be seen that the price of Vietnamese rice has increased steadily over time, partly due to the increasing market demand in the world, but the other part can also confirm the quality and prestige of the rice grain. Vietnam is being asserted more and more clearly in different commodity segments.

It is expected that in 2023, the rice production of the entire Mekong Delta region is still reaching about 24 million tons. This is a large source of commodity rice for processing and exporting enterprises.

Facilitating rice export

To create conditions to promote rice exports, recently, Deputy Prime Minister Le Minh Khai signed Decision No. 583/QD-TTg approving the Strategy to develop Vietnam’s export market by 2030 (Strategy). 

General objective The strategy is to develop the diversification of rice export markets with a reasonable, sustainable, and efficient scale, market structure, and export product structure; consolidate with traditional and key markets and develop new and potential export markets, markets that have signed free trade agreements (FTAs); increase Vietnam’s rice market share in export markets, especially in strong developed markets.

Linking the export market with domestic production according to the value chain, ensuring the quality and safety of exported rice; increasing the bringing of Vietnamese rice products and rice-based products into direct distribution channels to the market; Exports and products processed from rice are of high quality and value, improving value, ensuring sustainable export efficiency, affirming the reputation and brand of Vietnamese rice.

The specific goal is to increase the value, improve the value of rice for export and reduce the export volume by 2030 to about 4 million tons with a turnover equivalent to 2.62 billion USD, reducing the volume so the pace of increase should be increased. Average export growth in the period of 2023 - 2025 decreased by about 2.4% and the period of 2026 - 2030 decreased by about 3.6%.

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, and specialty rice account for about 45%; sticky 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%; strive for the proportion of exported rice with brand names above 40%.

More specifically, strive to achieve about 25% of rice directly exported under the brands Vietnam Rice/Vietnam Rice by 2030. This is the key to increasing the export value of rice grains.

On the side of ministries and sectors, to create maximum conditions for rice export activities, the Ministry of Industry and Trade is currently coordinating with relevant ministries, branches, localities, and units to finalize, the order to develop a Decree amending rice export activities. amending and supplementing Decree No. 107/2018/ND-CP dated August 15, 2018, of the Government on rice export business to complete the legal corridor for the mechanism to conduct management and promote export. 

Along with that, propagate and disseminate the implementation of the Strategy to develop our country’s rice export market to 2030. Continue to closely coordinate with ministries, branches, the Vietnam Food Association, and the Vietnam Food Association. rice exporters in the work of removing difficulties and obstacles in exporting rice to markets and especially in the context of the current trend of increasing technical barriers, food hygiene, and safety. More specifically, strengthen propaganda to raise awareness of traders to understand more fully and clearly, especially the provisions of the Free Trade Agreement on residues of food protection drugs and plant quarantine, seek an origin…

Hoang Yen (Collection source)