Will Vietnam’s Rice Exports Break Records Again This Year?

Vietnam has exported over 5.1 million tons of rice in the past seven months, with a turnover of $3.2 billion, an increase of 25% in volume and 5.8% in value compared to the same period last year. With the increasing import demand from partners, Vietnam’s rice exports this year are expected to reach a new record of around 8 million tons, bringing in more than $5 billion.

Answering the question of whether Vietnam’s rice exports can reach the 2023 record of 8 million tons, Mr. Nguyen Nhu Cuong, Director of the Plant Protection Department, predicted that the rice industry would ensure the export of 8 million tons of rice in 2024 while also meeting the country’s food security needs.

“The supply of some rice-exporting countries is limited, while the quality of Vietnamese rice has been constantly improving, meeting the demanding requirements of the global market,” Mr. Cuong said. “Along with this, businesses have also actively negotiated and achieved favorable results with partners. As a result, our rice export volume has increased, and Vietnam’s rice prices have remained competitive,” he added.

Mr. Cuong also highlighted that Vietnam possesses rice varieties considered among the best in the world. Vietnam has successfully researched and developed a new short-term fragrant rice variety, capable of producing 2-3 crops per year with high yields and excellent grain quality in terms of taste, stickiness, and aroma.

“This rice variety is Vietnam’s exclusive, which major producing and exporting countries like India and Thailand do not have. It has helped Vietnam’s rice industry establish a new niche in the global market,” Mr. Cuong emphasized. “The Mekong Delta, Vietnam’s year-round rice-growing region, has the advantage of maintaining stable and sustainable production volumes, and the quality of its rice has been consistently improving. This is one of the critical factors that will enhance the value of Vietnam’s rice exports in the global market in the coming years,” he added.

Commenting on the rice export market for the remaining months of 2024 and beyond, the Director of the Plant Protection Department stated that the demand for rice imports from Vietnam’s traditional customers, such as the Philippines, Indonesia, Ghana, Malaysia, and Singapore, would remain high.

Simultaneously, Vietnamese rice export enterprises are actively expanding into new markets, including the Middle East, Africa, South America, Japan, and South Korea. Therefore, the Ministry of Agriculture and Rural Development forecasts that in 2024, domestic rice production is estimated at approximately 43.4 million tons of paddy, with around 8 million tons of rice available for export. “We exported over 5 million tons in the past seven months, and we expect to export less than 3 million tons in the remaining months,” Mr. Cuong said.

Mr. Cuong also emphasized that despite the potential for record-high rice exports, similar to 2023, domestic supply would remain secure. “We don’t worry about a shortage of domestic supply because the Ministry of Agriculture and Rural Development has balanced and regularly updated the supply situation. Even if there are unforeseen circumstances affecting the market and domestic supply, the government will regulate accordingly, as food security is our top priority,” he assured.

According to Mr. Nguyen Anh Son, Director of Import-Export Department (Ministry of Industry and Trade), since the beginning of 2024, the Ministry of Industry and Trade has coordinated with relevant agencies to promote rice trade between Vietnam and its partners.

“The concerned ministries and departments have negotiated and engaged in bilateral exchanges with Indonesia and Malaysia regarding the consideration of signing a memorandum of understanding on rice trade, creating a stable and sustainable environment for rice trade between the two countries’ businesses,” Mr. Son said. “With the Philippines, the Minister of Industry and Trade and the Philippine Secretary of Agriculture signed a memorandum of understanding on rice trade cooperation.”

“For new markets, the Ministry of Industry and Trade signed a memorandum of understanding on rice trade between Vietnam and Mongolia with the Mongolian Ministry of Light Industry, Food, and Agriculture. Vietnam is ready to supply 30,000 tons of rice to meet Mongolia’s consumer needs in the coming time,” he added.

“Additionally, we have been closely coordinating with the Ministry of Agriculture and Rural Development to assist traders in completing the database registration for export processing bases in the potentially huge market of China, ensuring uninterrupted rice exports,” Mr. Son continued. “Focusing on niche market exploitation is also one of the solutions to expand Vietnam’s rice export market in the remaining months of 2024 and the export orientation in the following years.”

The Vietnam Food Association (VFA) reported that in the first seven months of the year, Vietnam successfully exported 5.18 million tons of rice, earning $3.27 billion, an increase of 5.8% in volume and 25.1% in value compared to the same period last year. The average export price of Vietnamese rice in the first seven months increased by 18.2% over the same period.

“Based on recent bidding results, Vietnamese rice remains competitive compared to other sources. It is forecasted that the export volume of rice from now until the end of the year will also be favorable and will achieve the set goal of about 8 million tons,” VFA stated.