On April 26, 2024, in Can Tho, the Ministry of Industry and Trade, in coordination with the Ministry of Agriculture and Rural Development and the Can Tho City People’s Committee, held a “Conference to Assess Rice Export Results in 2023, Q1 2024, and Discuss Export Orientation in the Coming Time”.
Q1 2024 PROMISING BUT STILL FACING POTENTIAL DIFFICULTIES
Assessing the global rice trade market in 2024, the Import and Export Department (Ministry of Industry and Trade) said that it still faces challenges such as a decline in global rice supply due to the continued impact of export bans in some markets such as India, the UAE, Russia, and the phenomenon of El Nino, climate change, in many regions.
In addition, the geopolitical situation remains complicated, which is forecasted to affect Vietnam’s rice export business in the last months of 2024.
Despite this, Vietnam’s rice exports in Q1 2024 still achieved some positive results. According to the General Department of Customs, by the end of Q1 2024, rice exports increased by 17.6% in volume, 45.5% in value, and 23.6% in price compared to Q1 2023, reaching over 2.18 million tons, equivalent to nearly 1.43 billion USD, with an average price of 653.9 USD/ton.
Vietnamese rice in Q1 2024 continued to dominate key markets with high demand in terms of volume.
In which, the Philippines remained the largest imported rice market of Vietnam, accounting for 46.4% of the total volume and 45.5% of the total rice export value of the country.
Indonesia ranked second, with a strong increase of 199.7% in volume, 308.8% in value, and 36.4% in price compared to the same period in 2023. Rice exports to the Malaysian market increased by 28.8% in volume, 60.6% in value, and 24.7% in price compared to Q1 2023.
Exports of high-value rice varieties, suitable for market demand, and Vietnam’s advantages grew strongly, such as aromatic rice, ST varieties, premium white rice, and japonica rice.
In addition to the results achieved, Mr. Nguyen Anh Son, Director of the Import and Export Department, said that Vietnam’s rice export activities still face many potential challenges.
In which, the market diversification strategy of traders is still limited; the rice export market still shows signs of instability, depending on some key traditional markets such as the Philippines, China and Indonesia.
Market development work has not been supported in proportion to the potential of the industry. Traders have not focused on developing linkages to build raw material areas or implementing solutions for traceability, building a data infrastructure to meet the requirements of the import market.
In addition, the exploitation of Decree No. 107/2018/ND-CP of the Government on rice export business for the export of parboiled rice, organic rice, and micronutrient-fortified rice to promote the export of these products is still very limited.
Since the issuance of Decree 107/2018/ND-CP to date, the export of these types of rice has still been carried out by traders who have been granted Certificates of Eligibility for Rice Export.
Notably, Vietnam’s rice exports are also facing fierce competition from other competitors such as Thailand, Myanmar, Pakistan.
International freight rates are still high due to the impact of geopolitical developments in Europe and the Middle East, also reducing the competitiveness of Vietnamese rice.
ACTIVELY GRASPING MARKET INFORMATION
In order for rice exports to overcome the challenges in 2024, Mr. Son said that the Ministry of Industry and Trade will continue to remove market difficulties and take advantage of the incentives from the new generation of Free Trade Agreements. Continue to flexibly organize and implement trade promotion activities, combining traditional and online forms, to enhance the promotion of trade cooperation in rice with traditional markets such as Indonesia, Africa, China, …; exploit niche markets with fragrant rice varieties, high-quality rice that we have penetrated in recent years such as the EU, South Korea, the United States, the North American region, …
At the same time, strengthen market information work; maintain the reporting regime, providing information from Trade Offices, Trade Office branches in countries and territories to monitor and follow the developments of the world market situation, especially the situation of large markets to promptly propose treatment measures; actively take measures to respond when there are abnormal developments, promoting rice exports.
Mr. Son also suggested that the Vietnam Food Association, through discussions with traders, member businesses, and related partners, proactively learn and inform the Ministry of Industry and Trade about factors that need attention from the world rice markets, especially with information on policy forecasts, and policies of Governments of countries related to rice import activities.
Together with that, proactively researching, seeking, and expanding markets in order to diversify markets, avoid dependence on a single market, thereby taking advantage of the incentives from the new generation of Agreements such as new market areas like the Americas (Peru, Mexico), the EU.
Deputy Minister of Industry and Trade Phan Thi Thang also assessed that rice exports will face many difficulties and challenges in the coming time. Therefore, it is proposed that the Ministry of Agriculture and Rural Development proactively monitor the situation, promptly grasp information to provide full and accurate information on the market developments of rice.
Provide guidance and recommendations to localities, businesses and farming households to strictly follow the regulations on standards, norms, quality, and regulations of the import market.
Preside over and coordinate with the Ministry of Industry and Trade and related Ministries and sectors to monitor, negotiate, and remove technical and phytosanitary barriers applied by partners to paddy rice exported from Vietnam.
Proactively negotiate and sign agreements, agreements on phytosanitary measures, technical regulations on quality of paddy and rice to facilitate rice export enterprises of Vietnam.
For rice export traders, Deputy Minister Thang requested that they proactively seek and update information from the Ministry of Industry and Trade, relevant Ministries and sectors, and the Vietnam Food Association to effectively exploit the incentives from Free Trade Agreements that have been and will be signed.
Proactively coordinate with localities to establish a mechanism for linkage, cooperation, and sponsorship … with facilities and producers to ensure a stable source of goods, with quality suitable for market demand and food safety standards.
of rice-importing countries.
