Exports far exceed expectations

According to data from the General Department of Customs, in the 11 months of 2022, the country's rice exports have reached over 6.68 million tons, equivalent to over $3.24 billion, up 16% in volume, up 6. 7% in turnover compared to 11 months of 2021.

In terms of price, according to estimates, the average export price of Vietnam's rice in November 2022 reached US$493/ton, up 3.1% compared to October 2022, but down 5.8% compared to November. 2021. In the first 11 months of 2022, the average export price of rice reached 485 USD/ton, down 8.1% over the same period in 2021.

The table compares rice exports in the past 11 months over the years. Source of Industry and Trade Newspaper

Regarding the market, in the past 11 months, the Philippines has still ranked first in Vietnam's rice consumption, accounting for 44.9% of the total volume and 42.9% of the country's total rice export turnover , reaching nearly 3 million tons. , equivalent to 1.39 billion USD, average price 463 USD/ton, up 30% in volume, 18% in turnover over the same period.

Top 5 leading rice export markets of Vietnam.

Next is the Chinese market, accounting for over 12% of the total volume and total turnover, reaching 807,947 tons, equivalent to USD 408.49 million, the average price of USD 505.6/ton, down 19.2% in volume and down. 17.4% of turnover.

Ivory Coast ranked third with 655,593 tons, equivalent to 294.28 million USD, priced at 448.9 USD/ton, up sharply by 83% in volume and 61.3% in turnover but down by 11.9% in price compared to that of Ivory Coast. same period. This market currently accounts for over 9% of the country's total rice export volume and turnover.

Exports to RCEP markets in the past 11 months reached 4.42 million tons, equivalent to over $2.09 billion, up 17% in volume, up 9.1% in turnover; CPTTP reached 543,913 tons, equivalent to USD 263.13 million, up 31.5% in volume and 19.8% in turnover; EU reached 26,668 tons, equivalent to over 17.84 million USD, up 17% in volume, up 0.4% in turnover.

With the results of the past 11 months, the Vietnam Food Association (VFA) estimates that by the end of 2022, the country's rice exports will reach about 7 million tons with an estimated value of about $3.5 billion.

“The year 2022 is a year with many fluctuations in the market, when the price of rice goes down at the beginning of the year and it is not until the third quarter that the price of rice increases. However, it can be affirmed that 2022 will continue to be a quite successful year for Vietnamese food exporters and producers. Accordingly, it is estimated that by the end of 2022, Vietnam will export over 7 million tons of rice. This is a number of people working in the industry like us, no one thought they would achieve,” said Mr. Do Ha Nam, Vice President of the Vietnam Food Association (VFA).

Vietnamese rice appears on the shelves of major supermarkets in the EU

According to VFA, in 2022, there was a time when Vietnam's 5% broken rice export price surpassed Thailand and ranked first in the world. For example, in November 2022, while Thailand's offering price of 5% broken rice was only $440/ton, Vietnam recorded $447/ton. With this level, the price of Vietnamese rice is slightly higher than Thai rice of the same type by about 7 USD/ton.

Not only white rice but also fragrant rice, japonica rice... of Vietnam have received many export orders at good prices. Mr. Pham Thai Binh - General Director of Trung An Hi-tech Agriculture Joint Stock Company - said that the price of fragrant rice exported to the Middle East and European markets of this enterprise in 2022 will reach an average of $650/ton. , especially ST24, ST25 rice priced at over 1,000 USD/ton.

Many prospects in 2023

Commenting on the prospects of the rice industry in 2023, Mr. Do Ha Nam said that Vietnam's rice exports are expected to be favorable because rice prices in the short term will remain high due to economic uncertainties. Global politics causes increased demand for food.

“I think 2023 will continue to be a positive year for rice exporters. This is completely reasonable because rice is an essential food that every country needs, while the supply of rice in many countries is shrinking due to climate change. The proof is that we have signed and will deliver about 30,000 tons of rice in the first quarter of 2023 to markets such as Malaysia, Singapore, and Korea…” - Mr. Pham Thai Binh shared.

Sharing the same view, Mr. Nguyen Phuoc Thanh - Director of Phuoc Thanh IV Production and Trading Co., Ltd - added: The market in 2023 has many positive prospects when many major rice exporting countries such as India and China decrease. production due to natural disasters (floods, droughts). In that context, many countries are also taking advantage of purchasing to ensure food security. Particularly, Phuoc Thanh IV is currently preparing a plan to buy and reserve goods for the early winter-spring crop and the main winter-spring crop, in order to ensure the source of goods for export orders.

Along with advantages, according to Mr. Do Ha Nam, the business community in general and food production and export in particular will face some challenges related to capital and credit room. Specifically, the financial story is currently the biggest difficulty for businesses, affecting those who want to expand or acquire reserves. Not to mention that now the State Bank, although starting to open more credit room, is very small, leading to risks for businesses.

Looking forward to more "support" from national trade promotion

In the context of advantages and challenges intertwined, businesses want the exchange rate and interest rate mechanism to be stable. Because when businesses make production business plans, they must be based on the exchange rate and when the exchange rate goes up and down suddenly, all the calculations of businesses will no longer be accurate, leading to losses. In addition, the stability of capital is also very important, helping to ensure production orientation and the State Bank should have a mechanism to finance rice enterprises.

In addition, the trade promotion is also paid special attention by businesses. Therefore, businesses want to be supported by the Ministry of Industry and Trade, organize many trade promotion delegations to new and key markets such as the Middle East, EU ...

Pointing out the importance of trade promotion, Mr. Nguyen Phuoc Thanh said that in major markets such as the US and Europe, thanks to trade promotion, rice products have been able to enter supermarkets in other countries. this. “In 2022, the company had sample orders, connected and opened the UK market. Since then, there is a plan to build a rice brand in this market," shared Mr. Nguyen Phuoc Thanh.

In fact, the trade promotion for agricultural products in general and rice in particular has been paid great attention by the Ministry of Industry and Trade through the organization of business delegations to overseas fairs and exhibitions. In addition, in the domestic market, the Ministry of Industry and Trade also organizes many seminars to connect businesses directly with international buyers.

Regarding this issue, Mr. Do Ha Nam - Vice President of VFA assessed: In recent years, the Ministry of Industry and Trade has organized many trade promotion programs for rice businesses. Specifically, organizing promotion delegations to participate in fairs, exhibitions or trade connections abroad. Thereby helping businesses reach potential customers and get a good signal right after. In particular, overseas promotion programs with the participation of leaders of the Ministry of Industry and Trade have helped the negotiation results exceed enterprises' expectations.

“Last lesson, we found that if only the Vietnam Food Association went to promote in the Philippines, it would face many difficulties, unable to negotiate successfully with the importer of this country. However, when leaders of the Ministry of Industry and Trade directly joined the delegation and worked with the Philippine Department of Agriculture, the problem of SPS was immediately resolved. Accordingly, only the next day a series of ships anchored for a whole month outside the port were cleared. It is a very good signal that our businesses highly appreciate the role of the Ministry of Industry and Trade. Therefore, we hope that in 2023, the Ministry will pay more attention and support," said Mr. Do Ha Nam.