Ranking behind India, Vietnam is the second largest Rice Exporter in the world. On 19th of November 22, a forum held by the Ministry of Agriculture and Rural Development (MARD) of Vietnam stated that the country is working towards achieving a target of 7 million tonnes of rice exports in the current year. Global economic uncertainties such as the post-covid effects, climatic uncertainties, and the turmoil between Russia and Ukraine have pushed up the global demand for rice.
Opinion Of Experts
Experts at the forum have shared the same viewpoint that the prices of Vietnamese rice would continue to stay high as the economic, political, and climatic uncertainties have kept the demand for the commodity high in the global markets.
Short Note-Vietnam’s rice exports reached over 4.79 million tons valued at over 2.33 billion USD in the first 8 months of 2022 which is up 20.7% in volume and 9.9% in turnover compared to the previous year where the average price reached 486.5 USD, down 9% in the first 8 months of 2021.
If the export volume is maintained at over 400,000 tonnes each month in the remaining couple of months of the year, the year’s export volume of rice will reach from 6.8 to 7 million tonnes.
The experts stated that China is one of the most important markets for Vietnamese rice and apart from China, the European Union (EU) and the United Kingdom have also remained important markets in Vietnam. They also suggested that exporters should tighten their connectivity with purchasing and processing units to be able to satisfy the technical requirements of importers and thus better utilize free trade agreements (FTAs) and export quotas.
Export Market In China
A total of 22 Vietnamese firms have been licensed to ship rice to China, and Vietnam has given a proposal to China to expand the list. Le Thanh Hoa, the
deputy head of the Agro Processing and Market Development Authority (AgroTrade), asked businesses to pay due attention to China, saying although it is a big and promising market for Vietnamese farm produce, the country has made changes in import requirements, from plant quarantine to packaging, tracking of origin and growing area codes.
Impressive Growth In Vietnam’s Rice Market
Economic experts commented that Vietnam’s target to export 7 tonnes of rice in the 2022FY is within its power and additionally, the export price of 5 percent broken rice is leading the world, at US$425-230 per tonne, these are truly positive signs for the nation’s economy at the end of the current year. Rice growing and exporting in Vietnam so far has received several good news. The ST24, and ST25 rice types have entered the category of the top 4 most delicious rice in the world. Trung An Hi-tech Farming JSC (in Can Tho City) has its rice products accredited under Global GAP standards which makes them acceptable in picky markets like the EU and the Republic of Korea.
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