Agriculture & Food

Vietnam's rice export volume has increased significantly, and the rice export price has also exceeded the price of Thailand's rice. Rice exports have received a lot of good news.

According to the Huacheng Import and Export Data Observation Report, Vietnam's rice exports increased significantly, and the rice export price also exceeded the price of Thailand's rice. Rice exports received a lot of good news. This year is expected to be another record year for Vietnamese rice.

As one of Vietnam's famous rice exporters, Zhong'an High tech Agriculture Co., Ltd. has won the bid to export rice in recent years. Fan Taiping, general manager of the company, shared that the company has signed new orders continuously. Recently, the company has just won the bid to export 20000 tons of rice to South Korea, worth more than 9 million dollars, and is expected to export in early 2023. This is not the first time Zhong'an won the bid to export rice to South Korea. The export contract value of this batch of rice is relatively high, Huacheng Import and Export Data Observation reported.

Not only Zhong'an Company, but also many rice exporters welcome many advantages. According to the data of the General Administration of Customs, Vietnam's rice export volume in October 2022 reached 713546 tons, with an export volume of $34106.4 million. Compared with September 2022, the export volume and export volume increased by 22.3% and 23.9% respectively. October 2022 became the highest rice export month in the history of Vietnam's rice industry.

According to the Huacheng Import and Export Data Observation Report, by the end of the first 10 months of 2022, Vietnam has exported 6.1 million tons of rice and earned 3 billion dollars in foreign exchange. It is worth mentioning that at present, the average price of rice exported by Vietnam ranks first in the world, which is far higher than that of Thailand (the country with the second highest average price of rice in the world) at 23 dollars/ton.

Among them, the Philippines and China accounted for 57.47% of the total rice exports. The export to the Philippines was 2.739 million tons, accounting for 45.02%, with a value of 1.266 billion US dollars. The export volume and export volume increased by 30.84% and 18.39% respectively year on year. Exports to China totaled 7575.75 million tons, accounting for 12.45%, with a value of US $38267612.5 billion.

Exports to demanding markets also saw high growth. In the first 10 months of this year, rice exports to the US market increased by 84.8%; The EU market grew by 82.2%.

According to the Vietnam Food Association (VFA), nearly two years after the implementation of the Vietnam EU Free Trade Agreement (EVFTA), Vietnam's rice exports are gaining a firm foothold in the EU market.

Fragrant rice, ST24, ST25, Jasmine and other high-quality rice are loved by the local people. After EVFTA comes into effect, the EU will give Vietnam an export quota of 80000 tons of rice every year, with the tax rate of 0%.

However, in 2021, Vietnam will export nearly 38000 tons of fragrant rice to the EU. It is estimated that Vietnam will export at least 60000 tons of rice to the EU market in 2022.

According to experts, since October 2022, there has been an unexpected trend in the world rice market. India, which accounts for 40% of global rice exports, issued a rice export restriction order. At the same time, India also imposed an export tax of 20% on white rice and brown rice products (accounting for 60% of India's total rice exports).

Against the background of increasing global rice demand, India's move opened the door to Vietnam's rice export. At the same time, the enterprise's efforts in diversifying rice varieties for export are also the driving force for Vietnam's rice export.

Record export prices

Not only did it achieve a high export volume, but also the rice export volume increased significantly. According to the data of Vietnam Food Association, in October, the price of 5% broken rice in Vietnam was 425-430 US dollars per ton, the highest level since November last year. This price is 48-51 dollars/ton higher than that of similar rice in India and 18-23 dollars/ton higher than that of similar rice in Thailand, as reported by Huacheng Import and Export Data Observation.

At the same time, the price of 5% broken rice in Thailand fell by 28 dollars/ton, from 435 dollars/ton to 407 dollars/ton, the lowest level since the end of July 2022.

Pan Wenyou, the marketing director of Vrice Co., Ltd., said that the export price of rice in Vietnam continued to rise, and the price of 5% broken rice remained at $440-450/ton. The reason for the price increase is the high demand for international imports in the last few months of this year, and the supply is limited by the bad weather in some rice growing countries.

In recent years, the price of rice in Vietnam has been higher than that in Thailand for many times. The price of Vietnamese rice is higher than that of Thai rice, which has become the norm. Vietnam's rice was developed after Thailand, but it is developing many new rice varieties and improving the production process. At the same time, the freshness of Vietnamese rice is higher than that of Thai rice of the same kind, so it is increasingly welcomed by consumers.

The increase in the average export price of Vietnam's rice is also due to the recent shift of Vietnam's rice exports to the market share of fragrant rice and high-quality rice.

According to the observation report of Huacheng's import and export data, the Vietnam Food Association said that Vietnamese fragrant rice and high-quality rice were produced from other rice varieties such as Taixiang 8, OM 5451, OM 18, which could not be replaced by any rice exporting country. These are rice varieties that meet the market demand and are very competitive compared with fragrant rice from Thailand and Cambodia.

The Ministry of Agriculture and Rural Development of Vietnam has predicted that, if there is no abnormal weather and epidemic, Vietnam will have enough rice of 6.5 million to 6.7 million tons for export, and the export volume is expected to reach about 3.2 billion to 3.3 billion dollars this year. However, from the result that more than 6 million tons have been exported in the first 10 months of this year, in the remaining two months of this year, at least 600000 tons will be exported each month, and it is estimated that 7.2 million to 7.3 million tons of rice will be exported this year. This is still a positive result for Vietnamese rice, exceeding the figure in 2021 (the export volume is 6.2 million tons, and the foreign exchange earned is 3.3 billion dollars).