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Vietnam’s rice export with high price

Summary

Updated on : 11-09-2017

VCN- Vietnam’s rice export price not only increases in volume and value but also increases gradually in months and remains at a high level from June until now.

According to the Ministry of Industry and Trade, the rice export volume in the first 8 months of 2017 was estimated at 4 million tonnes, an increase of 22.7% compared to the same period in 2016, valued at US$ 1.78 billion, up 20.3%.

Rice exports increased compared to the same periods in 2016 in volume and value thanks to the export growth of markets such as China, Malaysia, Philippines and Bangladesh, both in centralized contracts and commercial contracts and the growth of new potential markets.

In Malaysian market, Vietnam signed centralized contracts with total volume of 150,000 tonnes, in Bangladesh with total volume of 250,000 tonnes, in Philippines 4 Vietnamese traders were awarded contracts to supply 175,000 tonnes of rice.

Notably, rice export price has increased in the first 6 months and remained at the high level in the following months, which has contributed to rice consumption at the high price and brought benefit for farmers.

On June 1, 2017, the price of 5% broken rice was US$ 370-380 per tonne and 25% broken rice was US$ 340-350 per tonne. In July 2017, the price of 5% broken rice was US$ 405-415 per tonne and 25% broken price was US$ 380-390 per tonne. Until August 25, 2017, the price of 5% broken rice was US$ 380-390 per tonne and 25% broken rice was US$ 360-370 per tonne, although the price reduced in this time it is still from US$ 10 to 20 per tonne higher than the beginning of June.

Not only the rice price increases but also the rice export structure continues to have a positive shift. Low and middle value-added rice export volume sharply reduced. High value-added and high-quality rice export volume sharply increase (sticky rice, japonica rice and etc). This is in line with the direction of export market development.

The Prime Minister has approved the rice export market development strategy in the period of 2017-2020, with orientations towards 2030. The strategy targets are to gradually reduce the volume of export rice but to maintain and increase the value of rice exports; Shift the structure of rice export markets, and to increase the percentage of the Vietnamese rice brand exported directly.

The market structure will be adjusted in line with the target of shifting the export market structure and the global rice market’s trend and developments.

Specifically, strive to the Vietnam’s rice export volume will reach about 4 million tons by 2030, white rice accounting for 25%, in which low and middle-grade rice not exceeding 10% of the total rice export volume; aromatic rice, specialty rice, japonica rice accounting for 40%, sticky rice accounting for 25%. Gradually increase the proportion of high added value rice, such as micro nutrient fortification rice, organic rice, rice flour, rice products, rice bran and some other byproducts from rice (about over 10%).

By Phan Thu/ Ngoc Loan