Global Rice News

VIETNAM, December 27 – HÀ NỘI — The rice sector in Vietnam is expected to experience significant growth in 2023, which will open up new markets, strengthen the reputation of Vietnamese rice, and enhance national food security. Deputy Minister of Agriculture and Rural Development Phùng Đức Tiến predicts that rice export volume will increase by 11 percent compared to the previous year, reaching over eight million tonnes.

Despite the challenges caused by geopolitical conflicts and disruptions in food and input material supply, Vietnam, as a leading exporter of farm produce, particularly rice, has managed to maintain national food security and sustain export growth. The global food market has been affected by the El Nino phenomenon, which poses a risk to food production, and the suspension of grain exports by countries such as India, the UAE, and Russia.

To address these challenges, the Prime Minister has issued a directive to ensure national food security and promote sustainable rice production and exports. The Ministry of Industry and Trade has been assigned to coordinate with relevant agencies to implement rice trade promotion programs, leverage preferential trade agreements, and diversify export markets to enhance the competitiveness of Vietnamese rice.

Under the strategy for developing rice export markets until 2030, localities and key rice farming zones are being directed to restructure their production to focus on producing high-quality rice for export and increase its value.

Despite the current low domestic rice supply, it is expected that this year’s rice export volume will exceed eight million tonnes. During the first 11 months of 2023, Vietnam exported about 7.75 million tonnes of rice worth US$4.4 billion, experiencing a significant increase of 36.3 percent compared to the previous year. This growth is attributed to a 17.3 percent increase in the average export price, which now stands at $663 per tonne due to high demand.

The global market has also recognized the quality of Vietnamese rice, with the ST25 variety recently winning the “World’s Best Rice” title. Despite the advantages of high prices in the market, businesses must also consider the risks associated with fluctuations in global policies. It is crucial for businesses that hold large stockpiles to make accurate assessments and preparations to avoid difficulties in the event of policy changes by countries like India or China.

Businesses are hopeful that rice prices in the winter-spring crop will remain high to benefit farmers. While export prices in the future may decline slightly, it is unlikely that they will experience a sharp decline, possibly settling around $600 per tonne.

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