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Good signals for Vietnamese rice exports

Increased value

Ministry of Industry and Trade (MoIT) data show that Vietnam exported 5.7 million tonnes of rice worth US$2.86 billion in the first 11 months of 2018, up 16.8 percent in value compared with the same period last year. These results put rice on top of the list of agro-forestry-fishery products in terms of export value growth.

In the first 10 months of 2018, Vietnamese rice was exported at prices averaging US$504 per tonne, up 12.3 percent compared with the same period last year. The structure of export rice products has changed, with white rice accounting for 51 percent of total export value; Jasmine and fragrant rice 32 percent; glutinous rice 12 percent; and Japonica rice (a Japanese variety) five percent.

Private rice companies have strengthened their position. On November 20, the Tan Long Group Joint Stock Company won a contract to export 118,000 tonnes of 25 percent broken rice to the Philippines. The company had previously won bids to export large volumes of rice to the Republic of Korea and the Philippines.

Over the past three years, the number of export markets for Vietnamese rice has increased from 60 to 150 countries and territories, including Latin American and Middle East nations. Vietnamese high-quality white and fragrant rice products have penetrated discerning markets.

Despite a decline in exports to China, rice exports to other markets, such as Indonesia, Iraq, Hong Kong (China), the Philippines and Malaysia increased strongly.

Optimistic forecasts

The MoIT forecast that 2018 rice exports would reach about 6.2 million tonnes in volume, 6.6 percent higher compared with 2017, and about US$3.12 billion in value, up 18.5 percent.

The prospects for rice exports towards year’s end are also looking up. The Philippines is forecast to import large volumes of rice through both open international bidding and government contracts. Egypt is also predicted to import 500,000 tonnes of rice early next year due to its decreased rice cultivation.

The MoIT’s Foreign Trade Agency recently coordinated with the commercial section of the Vietnamese Embassy in China and the Industry and Trade Department of Long An Province to invite 22 Chinese rice exporters to purchase rice in Ho Chi Minh City and Long An Province. Currently, 20 Vietnamese companies export rice to China, a number that is expected to grow.

Source: http://ven.vn