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BUSINESS REPORT
BUSINESS REPORT

Active engagement

Recent developments in global rice markets are seen as a major opportunity
for Vietnam’s exports but exporters must be fully on board.

By VU KHUE

r. Nguyen Anh Son, Director Its rice exports set a record in 2023, with is therefore crucial for the government to
General of the Department of shipments of more than 8.1 million tons make greater efforts, while rice exporters
M Import and Export at the Min- and revenue of $4.78 billion, a 36.6 per must be proactive in research, closely
istry of Industry and Trade (MoIT), told cent increase in value compared to 2022. monitor the market, and ensure sustainable
an online conference with Vietnamese It was also the highest volume for many and effective operations.
trade representatives held by the Ministry years, indicating rapid growth and sig-
on February 29 that Vietnam is one of the nificant transformation in both production Growing markets
three largest rice exporters in the world, and exports. To develop rice export markets, Mr.
accounting for approximately 15 per cent Mr. Nguyen Ngoc Nam, President of Nam proposed that the Ministry of Indus-
of the global total. Therefore, he went on, the Vietnam Food Association, quoted try and Trade (MoIT) provide timely
any changes in policy, fluctuations in supply data from the US Department of Agri- information on export figures as a basis
and demand, and price trends in importing culture in saying that Vietnam was ranked for relevant parties to balance supply and
countries will directly affect its rice sector. third after India (17.5 million tons) and demand more effectively; intensify
Thailand (8.8 million tons) in terms of research into the market, with assessments
rice exports globally in 2023. This is a and forecasts on import needs and the
Major export potential
Vietnam’s rice industry has enhanced remarkable achievement for the country’s capacity to conduct marketing promotion
its profile and expanded its markets to rice sector, affirming its status as one of activities in import markets; and provide
over 180 countries and territories. Of par- the world’s top 3 exporters. updated information for the Association
ticular note, challenging destinations such Alongside these achievements, however, and exporters to prepare trade strategies
as Europe, the US, South Korea, Australia, Mr. Nam also pointed out that the prof- and export plans. At the same time, nego-
and the Middle East have shown a pref- itability of rice exporters remains relatively tiations must be conducted and prefer-
erence for high-quality rice from Vietnam. low due to rising production costs and ential trade agreements with potential
service fees, which pushes up overall costs export markets signed, and reviews con-
in the domestic market. ducted of existing agreements to ask part-
In terms of exports, he predicts that
the market will become more vibrant as
demand from major markets such as
Indonesia, the Philippines, Malaysia,
China, and Africa increases due to con-
cerns about a prolonged El Nino weather
pattern until the middle of the year. Based
on such developments, the Vietnam Food
Association plans to export approximately
6.5 million tons of rice this year.
Despite the global challenges, Mr. Son
“The market will become more believes that rice exports have exhibited
vibrant as demand from major positive signs in the early months of 2024.
markets such as Indonesia, the Specifically, in January, rice exports stood
at $362 million, an increase of 7 per cent
Philippines, Malaysia, China, and
compared to the same period last year.
Africa increases due to concerns Additionally, according to several forecasts,
about a prolonged El Nino weather rice prices will continue to rise throughout
the year due to supply constraints.
pattern until the middle of the
“The market is expected to tighten at
year. Based on such the beginning of the year due to existing
developments, the Vietnam Food export restrictions in India,” he com-
mented, adding that the start of the El
Association plans to export
Nino weather pattern and the potential
approximately 6.5 million tons of impact of this phenomenon on key rice-
rice this year.” growing areas have further raised concerns
about supply. At the same time, he empha-
Mr. Nguyen Ngoc Nam sized that this presents a great opportunity
President of the Vietnam Food Association
for the rice industry and businesses in
Vietnam. However, he added, opportunities
are always accompanied by challenges. It

36 Vietnam Economic Times April 2024 en.vneconomy.vn