Favorable export

The picture of rice exports in the first months of 2023 has many bright spots when both orders and selling prices increase sharply. Recently, Trung An Hi-tech Agriculture Joint Stock Company has exported high-quality shipments of over 2,000 tons to the Chinese market. Mr. Pham Thai Binh, General Director of Trung An Company, said that after many months of stagnation, China and many markets are now buying rice from Vietnam.

“After this order, the company continues to negotiate a shipment of about 20,000 tons to China. In addition, the Philippines, Indonesia, Malaysia and Middle Eastern countries are also showing signs of wanting to import goods ," said Mr. Pham Thai Binh.

Mr. Nguyen Van Thanh, Director of Phuoc Thanh IV Production - Trading Co., Ltd, said that thanks to the increase in food reserves of countries, businesses are having a lot of orders with both old and new partners. However, Phuoc Thanh mainly delivers to traditional customers, new customers will be more limited because this winter-spring season is abundant, the export price will not be as high as expected.

“We have temporarily stored about 15,000-18,000 tons of rice in stock, waiting until the end of May, the beginning of June, when in the summer-autumn crop, we will sell it at a better price. This consolidation move is based on the demand situation of the markets, future orders and the ability to control price and cost risks…”, Mr. Thanh said.

The rice export market has many advantages in the first months of 2023

Statistics from the General Department of Customs show that, as of May 15, the country's rice exports reached nearly 3.3 million tons, earning more than 1.7 billion USD, up 37.4% in volume and 48 ,4% in value.

Tran Ngoc Trung - Vice Chairman of the Vietnam Food Association (VFA), said that in general, Vietnam's rice export activities in the second quarter of 2023 were very favorable, because the demand for food reserves was still there. increasing trend.

“Currently in the second quarter, contracts with signed businesses are also full. Outlook for exports in the second quarter and the whole year of 2023 is very favorable , ”said Vice Chairman of the Vietnam Food Association.

Besides, the reopening of China also creates favorable conditions for rice exporters. On the other hand, Vietnamese rice also has the opportunity to penetrate deeper into some major markets. For example, Africa has an annual consumption of up to 42 million tons, but Vietnam has only exported 2.43 million tons, or the EU market has granted Vietnam a quota of 80,000 tons tax-free of 175 Euro/ton. …

Businesses worry about lack of capital

Although the export market is having many advantages, now businesses are facing many difficulties in terms of capital to purchase raw materials. Mr. Pham Thai Binh, General Director of Trung An Hi-tech Agriculture Company, expressed concern about credit sources to purchase rice in the upcoming summer-autumn crop.

According to Mr. Binh, who has a chain of rice production and consumption cooperation with cooperatives, the most difficult thing now is when the rice purchasing season requires a large amount of money. With the amount of rice purchased when the crop is about 1-2 tons/day, businesses will need a few billion dong. Meanwhile, in the coming time, the summer-autumn crop will enter the full harvest. Therefore, businesses need huge capital to buy rice for farmers. Therefore, the financing channel of the banking system for businesses deeply involved in the linkage chain is very necessary.

Many businesses are concerned about capital to buy rice for people in the summer-autumn crop

Sharing the same concern, Mr. Nguyen Van Nhut - General Director of Hoang Minh Nhut Joint Stock Company compared, the situation of rice exporting enterprises is like "rice ready on the table but not eaten" because there is no money.

"Buying 10 thousand tons of rice needs about 150-200 billion VND, so if you buy 1 million tons, how can you afford it ," Nhut said. At the same time, it is proposed to issue a policy for businesses to be fully trusted when the harvest comes.

Mr. Nguyen Ngoc Nam, Chairman of the Vietnam Food Association (VFA), said that credit capital is currently the most concerned issue for rice exporters in the Mekong Delta.

According to Mr. Nguyen Ngoc Nam, at the time of main harvest season (February, 3rd, 4th, 8th, 8th and 10th every year), rice procurement faced many difficulties because banks could not actively open. credit lines (from time to time) for rice exporters. In addition, with the use of large financial leverage, maintaining the circulating reserve level of 5% according to the provisions of Decree 107/2018/ND-CP also puts a lot of pressure on export traders. rice.

In the face of such a difficult situation, Mr. Nguyen Ngoc Nam proposed that the Government and the State Bank of Vietnam should have preferential mechanisms and specific policies to support capital for rice exporters in order to create favorable conditions for rice exporters. traders have more financial resources to purchase for temporary storage, contributing to stabilizing the output price of rice for farmers during the main harvest season, and at the same time contributing to increasing business efficiency for the business community. .

Specifically, it is necessary to strengthen short-term capital at the time of the main harvest season and continue to guide traders to access capital with low interest rates more effectively to support traders in purchasing temporary storage. Timely, stable production.

In addition, the Bank also needs to have a plan to stabilize interest rates in certain terms or have a separate regulatory policy for enterprises in the agricultural sector in general and rice business in particular in order to supporting enterprises to maintain stable and sustainable production and business activities.