Vietnamese Rice Exports: Commanding a Premium, Leading the Global Market

According to VTC News, on the evening of August 20, Mr. Nguyen Anh Son, Director of the Import-Export Department (Ministry of Industry and Trade), shared that Vietnamese rice prices are currently the highest in the world, surpassing Thailand and Pakistan, countries that typically have higher rice export prices than Vietnam.

As of August 20, Vietnamese 5% broken rice was traded at $578/ton, $15 higher than the same type of rice from Thailand and $36 higher than that of Pakistan. Similarly, the price of 25% broken rice from Vietnam increased to $541/ton, outpacing Thailand by $27 per ton and Pakistan by $23 per ton.

“At present, compared to the top rice-exporting countries in the world, Vietnam has the highest rice prices,” said Mr. Nguyen Anh Son.

Previously, according to the Vietnam Food Association (VFA), on August 16, the export price of 100% broken rice from Vietnam was $440/ton, while the 5% broken rice standard reached $575/ton, and 25% broken rice climbed to $539/ton.

The Ministry of Agriculture and Rural Development assessed that the significant increase in export prices reflects the impressive comeback of Vietnamese rice. Just a month ago, Vietnam’s rice export prices were lower than those of Thailand, Pakistan, and Myanmar.

Mr. Nguyen Nhu Cuong, Director of the Plant Protection Department (Ministry of Agriculture and Rural Development), explained that the high prices and global leadership of Vietnamese rice result from market demand. “The supply from some countries is limited, while the quality of Vietnamese rice continues to improve and meets the demanding requirements of the market. In addition, businesses have successfully negotiated with partners to maintain favorable prices for Vietnamese rice,” Mr. Cuong stated.

Mr. Cuong further emphasized that Vietnam now boasts numerous rice varieties recognized as top-quality worldwide. For instance, Vietnam has developed a unique short-term fragrant rice variety, capable of producing 2-3 crops per year with high yields and exceptional taste, fragrance, and texture. This variety is exclusively grown in Vietnam, setting it apart from major rice-producing and exporting countries like India and Thailand. Moreover, the Mekong Delta region of Vietnam is a year-round rice-producing area, ensuring not only superior quality but also stable and sustainable yields.

Most importantly, this unique rice variety has enabled Vietnam to establish a new niche in the global rice market—short-term fragrant rice with high productivity and exceptional quality. This factor has significantly contributed to enhancing the export value of Vietnamese rice worldwide.

“In the last five years, the Ministry of Agriculture and Rural Development, in collaboration with provinces, cities, farmers, and businesses, has transformed the quality of Vietnamese rice entirely. As a result, even with higher prices, our rice remains in demand from various countries,” Mr. Cuong added.

According to statistics from the General Department of Customs, in July, Vietnam exported over 751,000 tons of rice, earning nearly $452 million. Compared to the previous month, rice exports surged by 46.3% in volume and an impressive 39.7% in value.

In the first seven months of 2024, the rice industry exported nearly 5.3 million tons of rice, with an estimated value of $3.34 billion. While the volume of rice exports increased by only 8.3%, the value rose sharply by 27.7% compared to the same period last year. Notably, the average export price of rice in the first seven months reached $632/ton, an 18.2% increase compared to 2023.

Regarding future rice export prospects, Mr. Nguyen Nhu Cuong shared that the demand from traditional customers of Vietnamese rice, such as the Philippines, Indonesia, Ghana, Malaysia, and Singapore, remains robust. “At the same time, rice export enterprises are actively expanding into new markets in the Middle East, Africa, South America, Japan, and South Korea…With this momentum, in 2024, Vietnam aims to export approximately 8 million tons, earning over $5 billion, equivalent to the results of 2023,” Mr. Cuong stated.