Vietnam’s Rice Exports Experience Strong Surge in Q1 2024
Published on: May 4, 2024.
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Việt Nam’s Rice Exports See Growth in Q1 2024 Despite Challenges
Việt Nam’s rice exports have experienced significant growth in terms of volume and value during the first quarter of 2024, according to the Ministry of Industry and Trade. The ministry recently held a conference in Cần Thơ City to evaluate the country’s rice exports in 2023 and Q1 of 2024 and provide guidance for the rest of the year. In Q1 2024, Việt Nam exported over 2.18 million tonnes of rice, worth $1.43 billion, marking a 17.6% increase in volume and a 45.5% increase in export turnover compared to the previous year.
Việt Nam’s rice exports have performed well in key markets, including the Philippines, Indonesia, and Malaysia, with these markets experiencing high double-digit growth. The Philippines remains the largest buyer of Vietnamese rice, accounting for 45.5% of the country’s rice export turnover.
Efforts to Facilitate Rice Exports
The Government, along with the Ministry of Industry and Trade and other relevant agencies, has implemented various measures to overcome challenges in the global rice market. These measures include providing market information, strengthening trade cooperation with rice-importing countries, and utilizing new-generation free trade agreements (FTAs). These efforts have helped ensure stable sales for commercial rice, support rice farmers’ livelihoods, maintain stable rice prices, and fulfill international commitments.
Exporters have also taken advantage of new-generation FTAs to expand into markets such as the European Union (EU) and become alternative suppliers to countries like the United States, Canada, and Chile.
Challenges and Future Strategies
Despite the growth in rice exports, Việt Nam still faces challenges in diversifying its export markets and relying too heavily on traditional buyers. Additionally, there has been insufficient attention given to building or connecting with raw material zones, ensuring origin traceability, and establishing databases to meet the export requirements of foreign markets.
Việt Nam’s rice is also facing tough competition from other suppliers, including Thailand, Myanmar, and Pakistan. Furthermore, geopolitical complications around the world have resulted in increased international shipping and production costs, hindering trade.
The Ministry of Industry and Trade has outlined strategies for 2024 to address these challenges and further boost rice exports. These strategies include monitoring and assessing the rice import demands of major markets like the United States and the EU, as well as exploring exporting opportunities in other Asian and African countries. The ministry will also organize trade facilitation activities, both online and offline, to strengthen rice trading with traditional markets and tap into niche market segments, such as Jasmine rice and premium rice, in the EU, Korea, and the US.
The ministry will work closely with associations and businesses to ensure compliance with regulations for rice trading and export, particularly regarding origin and traceability, as well as food safety standards, which are increasingly stringent in foreign markets.
Positive Outlook for Việt Nam’s Rice Exports
In 2023, Việt Nam exported 8.1 million tonnes of rice, valued at $4.67 billion, representing a 14.4% increase in volume and a 35.3% increase in value compared to the previous year. Furthermore, Việt Nam became the largest rice exporter to Singapore in Q1 2024, capturing a 32% market share worth SGD36 million ($26.5 million).
Despite challenges, Việt Nam’s rice exports have shown resilience and promise. With ongoing efforts to overcome obstacles and leverage new market opportunities, it is expected that Việt Nam’s rice industry will continue to thrive and contribute to the country’s economic growth.
Source: Vietnam News
