(FILES) This photo taken on February 23, 2024 shows a farmer looking at his crop in a dry rice field amid a long heatwave in southern Vietnam's Ca Mau province in the Mekong Delta region, known as "Vietnam's rice bowl". Vietnam faces nearly $3 billion a year in crop losses as more saltwater seeps into arable land in the dry season, state media reported on March 17, 2024, citing new research. (Photo by Tan Dien / AFP)
HANOI: This year is forecast to be the second consecutive year that rice exports exceed eight million tonnes, bringing in about US$5bil.
The global rice supply is decreasing, and countries such as the Philippines, Indonesia, China and some other markets are all increasing rice imports to ensure food security, which creates opportunities for Vietnamese rice exports this year.
After many fluctuations in supply and prices last year, the global rice trade continues to be “hot” this year.
Limited supply due to unfavourable weather, exports being banned or restricted in some countries, increased import demand in many markets, and Red Sea tensions are the main reasons why the rice market has heated up this year.
Global inventories for the 2023-2024 crop year are forecast at more than 167 million tonnes, down 8.6 million tonnes compared with the previous crop year and the lowest inventory in the past six crop years.
India, the largest exporting country, with more than 20 million tonnes of rice per year, has applied policies restricting rice exports since the middle of last year.
Many countries have turned to finding alternative sources of rice, especially from South-East Asia, creating opportunities for Vietnam to increase rice exports at good prices.
Vietnam’s rice exports earned more than US$4bil last year, with earnings expected to rise even more this year.
Nguyen Anh Son, director of the Import-Export Department of the Industry and Trade Ministry, said that Vietnam’s rice industry has had remarkable growth through transformations in both production and exports.
The growth in output, product quality and improved production processes have helped expand and enhance the position of Vietnamese rice in the international market.
Selective markets such as Europe, the United States, South Korea and some new markets in the Middle East tend to favour high-quality Vietnamese rice.
The Industry and Trade Ministry requires local governments and rice industry business associations to share information and propose solutions for market development in close coordination with the ministry and Vietnamese trade offices abroad in order to build and implement practical, effective trade promotion activities to support rice enterprises.
The Philippines is set to import up to 4.1 million tonnes of rice this year, up from the previous forecast of 3.9 million tonnes. Its rice imports are rising due to the droughts affecting domestic rice output.
China was Vietnam’s third-largest rice import partner last year, importing 917,255 tonnes worth more than US$530mil at an average price of US$578 per tonne.
It is predicted that this year, China will increase rice imports to ensure food security, possibly exceeding last year’s figure of more than 900,000 tonnes, even as prices are predicted to rise.
The Voice of Vietnam newspaper quoted Nguyen Ngoc Nam, chairman of the Vietnam Food Association, as saying that the association recommended that the government provide even more detailed data on imports and exports this year in order to facilitate better management of the crop.
He also recommended conducting market research and trade promotion programmes in potential markets so rice exporters can better orient their business plans.
Also important are efforts to negotiate preferential trade agreements with more markets. — Viet Nam News/ANN
