According to the statistics from the General Department of Customs, in December 2023, the country’s rice exports reached 492,387 tons, valued at nearly $339 million, bringing Vietnam’s total rice export volume in 2023 to 8.131 million tons, valued at nearly $4.7 billion, an increase of 14.4% in volume and 35.3% in value compared to the same period in 2022. This is the highest export result in the history of Vietnam’s rice industry.
India’s measures to restrict rice exports to stabilize the domestic market and supply sources in countries affected by the El Nino have boosted demand and raised rice prices in recent times. Vietnam is one of the countries benefiting from this market development. In November 2023 alone, the average export price of Vietnamese rice reached $667 per ton, an increase of 4.1% compared to the previous month and an increase of 35.2% compared to the same period in 2022. This is also the highest price ever and higher than the price of $665 per ton for 5% broken white rice currently being offered in the market.
Mr. Ta Van Bong – Chairman of the Board of Directors and Director of Tan Binh Cooperative (Dong Thap) said: In the 2023 Winter-Spring crop, the price of rice remained above 9,000 VND/kg, which made farmers very excited, especially in the context of increasing input costs and labor costs. In 2023, Tan Binh Cooperative’s revenue growth reached 15-20%. The high rice prices, ranging from 9,000 to 11,000 VND/kg, helped farmers earn a profit of 35-40%. In the future, Tan Binh Cooperative will implement safe rice production according to SRP standards, aiming to produce low carbon emissions rice. By 2025, it will bring safe rice products to the market and build the brand “Culao Tay Agricultural Products” in the following years… “The market is increasingly interested in quality. Growing high-quality rice, moving towards the production of safe food will bring benefits to both producers and consumers. Currently, the cooperative has 220 ha of organic rice, and in 2024, it plans to expand the area to 300 – 400 ha and aims to convert the entire area to organic rice cultivation (over 700 ha),” Mr. Bong said.
Positive transformation of Vietnam’s rice industry
Winter-Spring harvest in the Mekong Delta, photo by Gia Bao
Both managers and experts agree that the global context is facing a rice shortage, and Vietnam is also affected by climate change, but to a lesser extent, making it possible to increase production. This is not only a “gift” but also the result of internal strength. The higher price of Vietnamese rice compared to Thailand is due to actual investment. Vietnam is superior to Thailand in terms of short-duration rice varieties of high quality, not just “luck”.
Mr. Huynh Van Thon – Chairman of Loc Troi Group, commented, “In 2023, rice exports reached 8.1 million tons, equivalent to $4.7 billion, an increase of 14% in volume and 35% in value compared to 2022. The rice industry set a record for export volume and value after 34 years of participating in the global market. The average rice export price in 2023 reached $580 per ton, an increase of 19% compared to 2022. The position of the country, rice, and farmers has been elevated. The Vietnamese rice industry has gradually shifted the negotiation power over prices from buyers to sellers.”
Mr. Pham Thai Binh – Chairman of the Board of Directors of Trung An High-tech Agriculture Joint Stock Company (Can Tho) said, “In 2023, the results of rice export were good, and 2024 can be even better as we can take advantage of market opportunities, and demand is still high.”
Sharing the same view, Le Thanh Tung – Deputy Head of the Department of Crop Production (Ministry of Agriculture and Rural Development), said, “Whether Vietnam exports rice for $600 or $1,000 per ton is exporting rice and exporting the effort of farmers. To have exported rice, it is not only the effort of farmers and enterprises, but also resources, infrastructure, especially the irrigation system in the Mekong Delta.”
What makes Vietnam’s rice exports outstanding?
Warehouse of Ong Tho Rice Joint Stock Company, Ho Chi Minh City, photo by Le Nguyen
Assessing the results of rice exports in 2023, Nguyen Nhu Cuong – Director of the Department of Crop Production, said, “India’s restriction on rice exports has had a major impact on the world rice market. India accounts for 40% of the world’s rice exports, so India’s temporary suspension of rice exports is considered an opportunity for other countries, and Vietnam has turned that opportunity into income for farmers.”
In addition to the high demand in the rice market, flexible direction and management have contributed to the successful increase in export value. “Directive No. 24/CT-TTg of the Prime Minister dated August 5, 2023, on ensuring national food security and promoting sustainable production, and sustainable rice exports in the current period has become an important orientation for functional agencies and localities to focus on production and regulation,” Cuong emphasized.
Agreeing with the analysis above, agricultural expert Hoang Trong Thuy added, “To achieve outstanding results in rice exports, the Ministry of Industry and Trade together with the Vietnam Food Association (VFA) have been actively inspecting and controlling the actual situation of storage facilities, milling, purchasing, and post-production services. At the same time, they have directed traders to strictly comply with the regulations in Decree No. 107/2018/ND-CP to ensure the maintenance of circulating stocks and efficient export balance.”
In addition, the Import-Export Department has also proposed to the Minister of Industry and Trade to issue Directive No. 07/CT-BCT on strengthening market information, trade promotion, developing rice export markets, and stabilizing the domestic market. On the other hand, the Ministry of Industry and Trade has actively negotiated and exchanged with traditional and key import partners (Malaysia, the Philippines) to consider signing a memorandum of understanding on rice trade.
Meanwhile, a rice trading delegation has been organized in the Chinese market to maintain, consolidate, and expand Vietnam’s rice market share in this market. It can be said that the rice industry has taken advantage of market opportunities, turning opportunities into income for rice growers and profits for production and export businesses.
Effective direction for the prospects of rice exports in 2024
Photo by Hai Hung
Economic expert Dinh Trong Thinh commented that when the market door is opened, there are still technical barriers, green standard stories, or the greenization of production, which is the message mentioned throughout 2023. “We also hope that in 2024, businesses can transform and meet the greenization standards set by the markets, thereby promoting export activities in traditional markets and expanding in the markets with which we have signed FTAs. By then, Vietnam will achieve higher import-export growth in 2024,” emphasized economist Dinh Trong Thinh.
According to many forecasts, rice prices will continue to rise in 2024 due to tightened supply. The rice market is expected to remain tight at the beginning of the year due to ongoing export restrictions by India. Meanwhile, demand continues to increase during the Tet holiday. These factors will drive rice prices even higher.
In the face of difficulties and challenges as mentioned above, one of the tasks mentioned in Resolution No. 01/NQ-CP dated January 5, 2024, of the Government is to strengthen trade promotion, continue to diversify export markets, products, supply chains, consolidate and expand Vietnam’s market share of goods in traditional markets and make breakthroughs in expanding potential new export markets; prioritize the exploitation and maximize the opportunities from key export markets, strategic markets.
According to Nguyen Nhu Cuong, Director of the Department of Crop Production, “Although the rice growing area tends to decrease, in the 2024 production plan, the agriculture sector has set a target to maintain the area of rice cultivation at 7.1 million ha, rice output over 43 million tons, ensuring exports of 8 million tons of rice or more.”/.
