Vietnam’s $4.6 billion ‘Treasure’ triumphs, neighboring countries receive bad news

Vietnam's "treasure" continues to maintain its top position in the world. Meanwhile, neighboring countries are eagerly awaiting more positive signals.


According to the official list released by the National Logistics Agency of Indonesia (Bulog) on January 31, 7 Vietnamese businesses have won a total of 10 out of 17 bids for the import of 500,000 tons of rice by Indonesia.

Notably, 3 large Vietnamese businesses have won two lots each. Among them, Loc Troi Group Joint Stock Company (LTG) has won lots 8 and 14, Northern Food Corporation has won lots 15 and 16, Southern Food Corporation has won lots 3 and 9.

Vietnam is the only country with multiple businesses participating and winning bids in large quantities (more than two lots). Besides Vietnam, only one trading entity, R&S Trader PTE in Singapore, has won bids for lot 10, 13, and 17.

Vietnam wins 10 out of 17 bids for the import of 500,000 tons of rice by Indonesia. Photo: Antara.

Reuters reports that Vietnamese rice has won bids for export to Pakistan and Indonesia. Traders say that Vietnamese 5% broken rice is being offered at $635-640 per ton, an increase compared to $630 per ton a week ago.

Prices are also supported by the memorandum of understanding on rice trade between Vietnam and the Philippines, which was signed earlier this week.

Meanwhile, Bangladesh will allow rice imports by reducing taxes if necessary to reduce the price of the country’s main staple grain, said Food Minister Sadhan Chandra Majumdar.

According to the Vietnam Food Association (VFA), the price of 25% broken rice is $612 per ton, a decrease of $2 per ton; 5% broken rice is $639 per ton, a decrease of $3 per ton. The reason for the sharp increase in Vietnamese rice exports is the increase in global market demand due to limited supply. Especially after India banned rice exports, global rice prices reached a record high.

Seizing the opportunity when many forecasts suggest that in 2024, the global rice market will continue to be vibrant due to a shortage of supply compared to demand.

“The price of rice in 2024 and the coming years will remain high. At the beginning of 2024, Trung An has signed 6 contracts with a total quantity of 1,500 tons for 5 markets including Europe, the UK, Malaysia, Dubai, and Australia, with the lowest price of $718 per ton and the highest price of $1,277 per ton, all FOB prices of Vietnam,” said Mr. Pham Thai Binh, CEO of Trung An High-Tech Agriculture Joint Stock Company.

Thai rice is currently experiencing price decreases. Illustration photo.

Indian rice prices rise, Thai rice prices decrease

In the same Reuters report, the price of Indian broken rice for export continued to reach record highs this week, as supply tightened and stable demand due to higher prices in other centers, while Thai rice prices fell due to a flood of new supply from the harvest.

5% broken rice from India’s leading exporter was quoted at a record high range of $537 to $546 per ton this week, an increase compared to $533 to $542 per ton the previous week.

“The (rice-PV) prices in India are rising but they are still trading at a high discount compared to the supply from Pakistan and Thailand. This price reduction is helping to maintain demand,” a Mumbai-based agent said.

Rice exports from Pakistan could reach a record high in the fiscal year ending in June due to export restrictions imposed by rival India forcing buyers to switch to Islamabad, the country that has been selling rice at the highest price in nearly 16 years.

Thai 5% broken rice was quoted at $640 to $658 per ton, down from $665 per ton the previous week. A trader in Bangkok said that the price decrease is due to the new harvest season, but added that Thai rice did not win any auctions because of its high price.

According to data from the General Department of Customs, Vietnam’s rice exports in 2023 reached $4.6 billion, an increase of 35% compared to the previous year. Of which, rice exports to Indonesia increased more than 10 times, while exports to Singapore and Ghana increased by about 40% and 60%, respectively.

In terms of production, Vietnam is currently the 5th largest rice-producing country in the world and the 3rd largest rice exporter. Vietnam’s rice production reached over 43 million tons, an increase of about 2% compared to 2022. Of which, Vietnam’s rice exports exceeded 8 million tons in 2023 – higher than the average of about 6-7 million tons in recent years.

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