Rice exports to China decline

According to the Ministry of Agriculture and Rural Development, in the first 11 months of 2024, Vietnam's rice exports reached nearly 8.5 million tons, earning 5.31 billion USD, up 10.6% in volume and 22.4% in value over the same period last year.

Compared to the same period in 2023, rice export volume increased by 10.6%, while export value increased by 22.4%. The biggest highlight this year is the strong increase in export prices. On average, Vietnam's rice export price reached 626 USD/ton, up 13.4%, equivalent to 74 USD/ton. This is the highest achievement since Vietnam joined the global rice export market.

Rice exports to China face difficulties (Photo: Can Dung)

Not only is the price significantly higher than in previous years, the current price of Vietnamese rice is also among the highest in the world. As of December 4, 2024, the price of 5% broken rice in Vietnam was 517 USD/ton, far exceeding that of Thailand (499 USD/ton), India (451 USD/ton) and Pakistan (453 USD/ton).

However, the picture in the rice export market is not entirely bright when rice exports to China - one of the traditional markets - decreased sharply by 71.3% compared to the same period in 2023.

According to the Ministry of Industry and Trade , China is currently Vietnam's largest trading partner and Vietnam's second largest export market after the United States. Meanwhile, Vietnam is China's largest trading partner among ASEAN countries, the 6th largest export market, and the 11th largest import market of China.

China is a large and traditional rice export market for Vietnam. With geographical advantages and cultural similarities, Vietnamese rice products exported to China have been well received and consumed by the Chinese people. Vietnam has exported a variety of rice varieties to China, such as white rice, fragrant rice, japonica rice, sticky rice, etc. with export volume generally growing well over the years, except for the Covid-19 outbreak.

However, since the beginning of the year, rice exports to this market have encountered more difficulties. According to experts, the reason for the decrease in rice exports to this market is that China has raised its rice quality standards compared to before. From fragrant rice, premium rice, ST24 rice... all are very strict about quality and packaging design. As for processed rice, China only imports cheap rice in large quantities.

Meanwhile, in the Chinese market, Vietnamese rice is facing fierce competition from similar rice from Thailand and Cambodia. These are all leading rice exporting countries in the world, not only with good quality rice but also very attractive packaging.

Speaking to reporters from the Industry and Trade Newspaper, economic expert Vu Vinh Phu said that China is a large and attractive market not only for Vietnamese enterprises but also for many other countries. Regarding rice, although there have been many efforts and some types of rice certified as the best in the world, in general, compared to Thailand or Cambodia, Vietnamese rice is less attractive in terms of packaging and more limited in terms of brand. Not to mention, recently, the export price of Vietnamese rice has increased quite high. This helps increase the overall export turnover, but makes it difficult for Vietnamese rice to compete in the Chinese market.

Ministry of Industry and Trade promotes rice trade to China

Trade promotion is an important solution that the Ministry of Industry and Trade regularly implements every year to find opportunities to increase rice exports to China. In 2024, the Import-Export Department presided over and coordinated with the Trade Promotion Department to organize trade promotion activities for rice products in the Chinese market from December 2 to 6, 2024.

The Ministry of Industry and Trade's rice trade promotion delegation organized many activities in China (Photo: Import and Export Department)

Accordingly, implementing Decision No. 880/QD-BCT dated November 27, 2024 of the Minister of Industry and Trade and implementing the National Program on Trade Promotion in 2024, the Working Group of the Ministry of Industry and Trade led by the Head of the Import-Export Department, with the participation of the Vietnam Food Association and nearly 20 Vietnamese rice exporting enterprises, organized a Trade Delegation for rice products in the Chinese market from December 2 to 6, 2024 to promote stable and sustainable export of Vietnamese rice to the Chinese market.

Many trade activities are organized within the framework of the program (Photo: Import-Export Department)

According to the Import and Export Department, within the framework of the working program, the delegation worked with the Department of Commerce of Hunan Province, the International Trade Promotion Committee of Shenzhen City (Guangdong Province), and the International Trade Promotion Committee of Hunan Province. In addition, they organized trade activities and connected rice products between Vietnamese enterprises and Chinese enterprises in Shenzhen City and Changsha City, Hunan Province. In addition, they conducted field surveys and worked with large companies in Shenzhen City (Guangdong Province) and Changsha City (Hunan Province) to seek opportunities to promote rice trade between Vietnam - China in general and Vietnam - Shenzhen/Hunan in particular, and at the same time connected businesses of the two countries to promote exports.

During the working sessions, the two sides provided information on the policy mechanism for the import and export of agricultural products in general and rice in particular. The delegation introduced to the other side the potential and capacity of Vietnam's rice production and export with diverse types, the dynamism of Vietnamese enterprises in innovation, application of advanced science and technology in production to continuously improve product quality, meeting market demand. The delegation informed the other side that the Ministry of Industry and Trade of Vietnam had granted Certificates of eligibility for rice export business to 161 traders.

In particular, the trade seminar in Shenzhen City (Guangdong Province) and Hunan Province attracted the participation of nearly 100 delegates from nearly 40 businesses in the localities. This was an opportunity for businesses of the two countries to access and exchange information with each other, promoting exports.

Highly appreciating the rice trade promotion activities of the Ministry of Industry and Trade, expert Vu Vinh Phu said that in the coming time, besides trade promotion, it is necessary to focus on solutions to build rice brands to increase competitiveness in this market.