[NEWS] - Vietnamese rice seizes the opportunity to boost exports

Over the past 2 weeks, the export rice market has been quite bustling due to the increased demand for rice imports from the Philippines, China and African countries, causing the price of rice to increase from 12 to 15 USD/ton.

According to preliminary statistics from the General Department of Customs, in March 2022, rice exports reached 531,389 tons, worth 262,953 million USD. The average price is 494.8 USD/ton.

The Philippines still ranks first in Vietnam’s rice consumption, accounting for 44.7% of the total volume and 42.6% of the country’s total rice export turnover, reaching 672,136 tons, equivalent to USD 311.08 million, the average price averaged 462.8 USD/ton, a sharp increase of 63.3% in volume, 41.4% in turnover but down 13.4% in price compared to the first quarter of 2021.

China ranked second, accounting for over 11.9% of the total volume and 12.4% of the total turnover, reaching 178,201 tons, equivalent to US$90.82 million, the average price of US$509.7/ton. plummeted 30.5% in volume, 33.3% in turnover and 4% in price compared to the first quarter of 2021.

Ivory Coast ranked third in terms of rice import market with 182,104 tons, worth 77.18 million USD, the average export price was 423.8 USD/ton, a sharp increase of 107.4% in volume and 74% in turnover. but decreased 16% in price over the same period, accounting for 12.1% of the total volume and 10.6% of the total rice export turnover of the country.

In general, in the first quarter of 2022, rice exports to most markets increased sharply compared to the first quarter of 2021. On the world market, the price of Vietnamese rice for export has increased to the highest level in the past three months due to stable demand and high transportation costs.

According to the Vietnam Food Association (VFA), the price of Vietnam’s 5% broken rice is being offered at $415/ton, while Thai 5% broken rice is at $408/ton and Indian rice is at $408/ton. priced at 343 USD/ton and in Pakistan at 353 USD/ton.

In the domestic market, rice in the Mekong Delta provinces was more active in March when the price of winter-spring rice increased slightly compared to the previous month. Farmers have harvested a quarter of the winter-spring rice area in 2022.

The world food situation is changing greatly

The VFA vice president added that the Russia-Ukraine conflict makes food supply in many parts of the world especially difficult, and the world food situation is fluctuating greatly.

The supply of wheat is disrupted, causing African countries to suffer from wheat shortages, so there is a regulation of food in the global market, and forcing Africa to use rice instead. Currently, some special regions of Africa have bought rice from Vietnam relatively early.

In the first quarter of 2022, the company’s rice exports increased by about 26% in volume and 13% in value. Currently, the company is operating at full capacity to pack goods for export to Hong Kong (China). This is a very good signal and coming in the middle of the end of May when the Philippines quota reopens the Vietnamese rice market will be more prosperous.

Currently, the export price of Vietnam’s rice is higher than that of Thailand, India and Pakistan, in which 5% broken rice increased from 12 to 15 USD from the beginning of the year to 415 USD/ton. This positive information has also helped the price of rice in the Mekong Delta increase slightly and stabilize at prices ranging from 5,500 VND/kg to 6,000 VND/kg depending on the variety.

VFA forecasts that the second quarter will be a more bustling time for rice exports as rice-importing countries step up their purchases, domestic enterprises need to ensure the source of goods and pay attention to information about containers and sea freight to proactively deliver goods and sign new contracts.

Although the price of input materials and fertilizers for rice production is increasing, it is at a good level, so farmers are also assured to enter the 2022 Summer-Autumn crop.

The fact that rice in the world is fluctuating has created favorable conditions for Vietnamese rice to seize the opportunity to boost exports. Indochina Holdings is currently providing support services for enterprises to export agricultural products, especially rice, to international markets. Recently, we have also successfully supported the Ngon Nhat Rice Company to export ST25 rice to the US. Indochina Holdings is proud to provide Vietnamese businesses with services to support and develop businesses. Indochina Holdings’ goal is to develop strongly with the mission of "Becoming a center of connection - trade between Vietnamese and foreign enterprises".

Cao Duy

Compiled from Nhip song Doanh nghiep