The Hunt for the ‘Third Largest Treasure in the World’: Ukraine’s Aggressive Pursuit Boosts Exports by Nearly 4000%, Positioning Vietnam as Asia’s Savior

Vietnam’s rice exports in July reached over 751,000 tons, with a value of more than $451 million, according to preliminary statistics from the General Department of Customs. This marks a significant increase of 46.3% in volume and 39.7% in value compared to the previous month.

Accumulated in the first seven months of the year, Vietnamese rice exports fetched a total of $3.3 billion, with a volume of over 5.3 million tons. These figures represent a robust 27.7% growth in both volume and value compared to the same period in 2023.

The average export price stood at $601 per ton, reflecting an 18% increase in price compared to the first seven months of 2023.

Breaking down the export markets, the Philippines remained the largest importer of Vietnamese rice, with 2.3 million tons, equivalent to over $1.4 billion. This signifies a 19% increase in volume and a remarkable 44% surge in value compared to the previous year.

Indonesia followed closely as the second-largest market, importing more than 778,000 tons, valued at over $481 million. These figures translate to a 29% volume increase and an impressive 61% jump in value compared to the same period last year.

Malaysia secured its position as the third-largest market for Vietnamese rice, with exports totaling over 529,000 tons and a value of more than $314 million. This demonstrates a remarkable 129% surge in volume and a substantial 176% increase in value compared to the corresponding period in 2023.

Notably, alongside these three dominant markets, Ukraine has emerged as a significant importer of Vietnamese rice, registering a four-digit growth rate since the beginning of the year. In the first seven months of 2024, Vietnam exported 10,656 tons of rice to Ukraine, generating over $6.8 million. This translates to an astonishing 3,951% increase in volume and a 3,420% surge in value compared to the same period last year.

Ukraine is a powerhouse in agricultural exports, particularly wheat. According to the country’s Ministry of Agriculture, its exports of cereals (including wheat, barley, and corn) have reached 2.56 million tons so far this marketing year (July 2023 – June 2024), surpassing the 2 million tons exported during the same period last year.

The Vietnamese rice market has witnessed an unprecedented boom since India’s rice export ban in mid-2023, triggering a scramble for alternative sources, especially among Asian countries. Rice export values have repeatedly broken records in the past year, notably achieving a remarkable price peak towards the end of 2023.

India maintains its position as the world’s largest rice exporter, with 16.5 million tons. Thailand ranks second globally and first in Southeast Asia, with 8.2 million tons. Vietnam proudly stands as the world’s third-largest rice exporter, with 7.6 million tons.

With a strong foundation in rice cultivation and a culture rooted in the ancient rice civilization, rice is not just a staple food but also a strategic export commodity for Vietnam. As a result, it has become the country’s leading agricultural export product, solidifying Vietnam’s position as one of the top rice exporters in the Southeast Asian region and the world.

Given the sustained high demand from global markets and the ongoing efforts to compensate for shortages, Vietnam’s rice export outlook remains positive. While price adjustments are expected, the average export price for Vietnamese rice in 2024 is forecasted to hover around $600 per ton, surpassing the $575 per ton recorded in 2023.