VIETNAM RICE EXPORT: NUMBERS AND SUSTAINABLE PROBLEMS

In recent years, each year Vietnam exports from 6-7 million tons of rice, an average of 500,000-600,000 tons/month, so the amount of rice exported this year is surprising.

The Laborer cited the Center for Digital Transformation and Agricultural Statistics - Ministry of Agriculture and Rural Development, the volume of rice exported in May 2023 was estimated at 1 million tons with a value of 489 million USD. In the first 5 months of the year, Vietnam has exported nearly 3.9 million tons of rice, worth 2.02 billion USD - up 40.8% in volume and 49% in value over the same period in 2022. .

The average export price of rice in the first 5 months of 2023 is estimated at 517 USD/ton, up 5.8% over the same period in 2022.

In particular, in the first 4 months of 2023, the Philippines is Vietnam's largest rice consumption market with a market share of 42.4%, reaching 1.29 million tons and 647.5 million USD - an increase of 40.6% in terms of rice consumption. volume and increased 53.4% in value over the same period in 2022.

Among the 15 largest rice export markets, the place with the strongest increase in value is Indonesia (26.3 times). In contrast, the market with the largest decrease in rice export value was Ivory Coast (down 49.8%).

In recent years, each year, Vietnam exports from 6-7 million tons of rice, an average of 500,000-600,000 tons/month, so the amount of rice exported this year surprised many people.

Sharing around this issue, a director of a rice export business in the Mekong Delta said that the winter-spring crop is Vietnam's main harvest with about 4 million tons of rice for export.

"Every year, rice will be stored for storage and gradually exported, but this year, partners all require delivery in April and May, so export output is concentrated during this time. Businesses are almost wiped out. warehouse for export, now we have to wait to buy rice for the new crop before we can communicate," the business owner said.

According to this rice exporter, although rice exports set a record, prices increased, but many businesses in the industry did not make a profit or even make a loss. Those are the businesses that signed contracts in advance with the forecast that the rice price is not as high as today. At the time of delivery, they were forced to buy rice at high prices, with some orders losing up to 40 USD/ton.

Facing the above situation, experts all recommend that businesses should not sign contracts to fix prices early, so have new goods available for sale to avoid risks when rice prices increase "hot" like today.

Vietnam's export rice price is the highest in the world.

Recently, the Ministry of Industry and Trade said that for many months, the export price of 5% broken rice has always been the highest in the world, surpassing Thailand and India.

Profits from rice prices remained high due to high demand, along with profit margins of rice businesses also expanded thanks to lower input costs.

Sharing about this issue on Tuoi Tre, Mr. Tran Quoc Toan, deputy director of the Import-Export Department (Ministry of Industry and Trade), reported on the situation of Vietnam's rice exports in the first quarter with many bright numbers.

Export turnover reached more than 1.8 million tons with a value of 981 million USD, up 23.4% in volume and 34.3% in turnover over the same period in 2022. The average export price of rice reached 529 USD. /ton, an increase of 8.8% compared to the average level of the same period last year.

Asia is still the "big brother" market, followed by Africa, Europe and traditional markets that still grow well such as China, Indonesia, and the Philippines.

White rice leads with 53.7% of total exports, followed by fragrant rice, sticky rice, broken rice...

Mr. Toan said that despite the fluctuating and complicated world economic situation, Vietnam's rice exports in the first quarter of this year had a great success.

"Our export price of rice continues to keep growing. At times, the export price of 5% broken rice ranks first in the world, higher than the price of rice of the same type in Thailand and India. That shows the potential to open up. expand the market, increase the market share of high quality rice in Vietnam", Mr. Toan emphasized.

Recently, the Prime Minister has approved the Strategy to develop Vietnam's rice export market until 2030. Accordingly, Vietnam aims to develop and diversify rice export markets with scale and base. market structure, sustainable export product structure.

Information on People, in order to create maximum conditions for rice export activities, the Ministry of Industry and Trade is coordinating with relevant ministries, branches, localities and units to complete and develop a Decree amending and supplementing Decree No. Decree No. 107/2018/ND-CP dated August 15, 2018 of the Government on rice export business to complete the legal corridor for the operating mechanism and promote export.

In addition, propagate and disseminate the implementation of the Strategy to develop Vietnam's rice export market until 2030 after being approved by the Prime Minister. Continue to closely coordinate with ministries, branches, Vietnam Food Association and rice export traders in removing difficulties and obstacles in exporting rice to markets; especially in the context of the current trend of increasing technical barriers, food hygiene and safety. In particular, strengthen propaganda to raise awareness of traders to fully and clearly understand, especially the provisions of the Free Trade Agreement on pesticide residues, plant quarantine, traceability, etc. source...

In addition, the Ministry of Agriculture and Rural Development has also sent a document to the People's Committees of the provinces in the Mekong Delta to consult, finalize the content and method of organizing the Sustainable Development Project of 1 million hectares. high-quality rice cultivation associated with green growth, submitted to the Prime Minister for approval and quickly implemented. The project is expected to create an opportunity to break through rice exports in the segment above 1,000 USD/ton, further helping Vietnam's rice achieve higher prices.

Rice exports are receiving many positive signals from the market. In 2023, rice exports can reach about 7 million tons with a turnover of 4 billion USD. Although the volume is lower than in 2022 (7.13 million tons), the turnover is much higher (3.45 billion USD).