Vietnam’s Rice Export Multiplies to the Philippines

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Aug 10, 2022 | Agricultural Markets

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According to the General Department of Vietnamese Customs, in the first two months of 2022, Rice exports increased by 49.2% in volume and 31.1% in value over the period Year-on-Year, reaching 974.6 thousand tons, worth USD470 million.

Vietnam only exported 469 thousand tons of Rice in February, worth USD223.3 million. The average export price was USD476.3 per ton. The Philippines still ranked first in Vietnam’s Rice consumption, reaching more than 305.2 thousand tons, valued at USD 140.1 million, a sharp increase of 255% in volume and 203% in turnover compared with February 2021; accounting for 65% of the total volume and 63% of the total Rice export turnover of Vietnam.

China ranked second with 45 thousand tons, equivalent to USD22 million, accounting for nearly 10% of volume and total turnover. Ranked third is the Ivory Coast market with 36.3 thousand tons, worth USD14.6 million, up 81.4% in volume, up 45.6% in turnover, accounting for 7.7% of the total. The following destinations were Malaysia and Ghana. 

Intimex Group Joint Stock Company, Northern Vietnam Food Corporation, and Thanh Tin Trading Service Co., Ltd were the top 3 Rice exporters in January 2022. The three companies have a total export turnover of 70,084,000USD. The following performers were Orient Rice, Hiep Loi JSC, Gia International Corporation, Trung An Hi-Tech Farming JSC, An Giang Import-Export, Phat Tai, and Louis Rice Trading Production One Member.

European and Japanese Market Prospect

Besides these top 10 exporters, other players have been entering new markets. Loc Troi Group announced the completion of the delivery of 500 tons of Rice branded “Vietnamese Rice” to German, Dutch, and French markets in July 2022. Since exporting the first shipment to the European market under the Vietnam-EU Free Trade Agreement (September 2020), Loc Troi has exported about 30,000 tons of Rice to Europe.

Rice exports to Europe are projected to grow significantly. Due to the Free Trade Agreement commitments, the EU will give Vietnam an export quota of 80,000 tons of Rice per/year. 

Mr. Nguyen Chanh Trung, Deputy General Manager of Tan Long Group, says his brand has passed an extremely rigorous testing process for more than 450 criteria to enable them to export Rice to the Japanese market.

Tan Long’s A An Rice has confidently reached out to the world market. In the coming time, Tan Long will continue to promote the export of other key Rice product lines such as ST24, ST24 Organic, and Japonica to Japan, the Asian community, and especially Vietnamese expatriates. They give priority to Rice varieties with high export value, such as Jasmine, DT8, and RVT, relying on a new cooperative model to build a qualified Rice material area and develop a sustainable Rice production chain towards the vision of producing more than 1 million tons of high-quality Rice by 2030.   

According to the Ministry of Agriculture and Rural Development, the country’s Rice output in 2021 reached over 43.8 million tons, up 1.1 million tons compared to 2020. The proportion of high-quality Rice accounts for over 90% of exported Rice. Vietnam exported 3.5 million tons of Rice in the first half of 2022, a year-on-year rise of 16%, earning USD1.72 billion.  

The conflict between Russia and Ukraine is not expected to affect Vietnam’s Rice exports because these two markets account for a small proportion of Vietnam’s total Rice imports. Rice exporters could benefit as Rice prices, and import demand could increase as grain supplies from Russia and Ukraine are disrupted, prompting buyers to turn to other alternatives such as Rice.

 

 

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