I. Interesting facts about Vietnamese Rice?
1) Rice production in Vietnam is ranked second in the world, just behind Thailand. In 2021, the country’s rice export volume amounted to 6.15 million tons.
2) On average, a Vietnamese person consumes nearly 100 kg of rice per year.
3) In Vietnam, In Vietnam, there are 12 different rice products that can be made from rice.
4) The wet rice cultivation was initiated and has lasted until nowadays in Vietnam since rice was grown in the Stone Age.
5) Thanks to the growth of exporting rice in 2021 Vietnam earned over $3.15 billion from rice exports.
6) Two regions with the biggest rice production in Vietnam are the Mekong River Delta (which produces 95% of Vietnam’s rice exports) and the Red River Delta. In 2020, 23.8 million tons of rice were produced in the Mekong River Delta.
7) The Rice Trader has officially confirmed that the rice product ST25 of Vietnam won the first prize in the world’s best rice contest 2019.
II. Where does Vietnam export rice to?
Vietnam’s rice export markets include 150 countries belonging to 28 markets (in 2021). The main market, Asia, comprised over 60% of total rice export turnover, followed by Africa and Europe with 19% and 2% of the total turnover, respectively.
Regarding ASEAN countries, the vast population of nearly 700 million makes them import many Vietnamese agricultural products. Among nations in the region, the Philippines (1st) and Indonesia (2nd) are two leading rice importers from Vietnam (in 2021).
Globally, in 2021, rice was exported the most to the Philippines with a turnover of $1,253,14 million, followed by China ($522.724 million); Ga Na ($393.618 million); Ivory Coast ($218.346 million); Malaysia ($181.859 million)
Also, Vietnam had Ivory Coast as a trade partner of rice with significant growth in import turnover, up 76% over the same period in 2021.
In 2022, the biggest export market of Vietnamese rice is still the Philippines, amounting to 49.89% of the country’s total rice exports.
Moreover, Vietnam recorded positive results in exporting rice to China, Africa, and Cuba markets. It is because of their stable demand in the second quarter and the first six months of 2022.
III. How Much Rice Do European Countries Imported From Vietnam?
The EU market has a high demand for importing goods from other countries globally because of its vast population of 516 million citizens originating from 27 countries, and GDP per capita of more than USD 35,000/ year.
In particular, agricultural products are the top import items of the EU countries, with a value of more than USD 160 billion/ year, becoming the third largest importer of Vietnamese agricultural products.
Moreover, according to the Ministry of Industry and Trade (MoIT), the EU – Vietnam Free Trade Agreement (EVFTA) has created many opportunities for the import and export between EU countries and Vietnam, particularly improving the rice exports from Vietnam to the EU.
Regarding Vietnam’s rice exports to Europe (EU). the EU gives Vietnam an export quota of 80,000 tonnes of rice per year to the EU.
And this number is expected to increase sharply in 2022, besides traditional markets such as the Philippines (the most considerable market), China, Malaysia, the US, African countries, South Korea, etc.
In the first two months of 2022, 15,500 tonnes of rice were exported to the EU, worth nearly 12 million USD, up 4 times in volume and 4.3 times in value compared to the same period in 2021.
Impressively, the leading market among European Union nations is Italy, with the import volume rising by 26 times over the last period in 2021. Also, Germany, France, and the Netherlands are the main import markets of Vietnamese rice.
IV. Vietnam’s Rice Export Price
Overall, from 2010 to 2020, the export value of Vietnamese rice is relatively stable. There were higher international trading turnovers (more than 3 billion USD) in 2011, 2012, 2018, and 2020.
In recent years (2017-2020), after a short time of decreasing rice export turnover, Vietnamese rice attracted global importers with an impressive increase in value, from 2.6 billion USD to 3.1 billion USD in 2017 and 2020.
As the graph shows, between 2010 and 2020, the producer price for rice decreased sharply.
Many rice production regions changed rice producer prices. In 2020, 1kg of rice, which is already packed and can be delivered immediately, is worth $2.23 in Hanoi and Ho Chi Minh City.
Average Export Price
The average export price for rice in Vietnam between 2010 and 2020 is USD 465/ton.
In particular, there was an increase in Vietnam’s rice export price, from USD 441/ton to USD 449/ton (up 0.13%).
Export Price in 2022
In Q1 of 2022, 5% of broken rice’s price increased by 12-15 USD/ ton, amounting to 415 USD/ ton, compared to the price at the beginning of the year.
It reached the highest price in 3 first months of 2022, thanks to the increasing demand and advantages in production.
In addition, Vietnam’s export rice price continued to be adjusted, up by 2 USD/ ton (on April 1) for 25% broken rice, and sold at 395 USD/ ton.
The price of 100% broken rice was still stable at 338 USD/ ton.
Rice Price Comparison in the Global Market
Currently, Vietnam’s 5% broken rice costs 5 USD/ton higher than Thai rice, but Vietnam’s 25% broken rice is 13 USD/ton lower than Thai rice. Vietnam’s 100% broken rice is 70 USD/ton lower than Thai rice.
In the global market, the export price of Pakistani rice increased by 5-8 USD/ton. After rising by 8 USD/ton, 100% broken rice from Pakistan was planned to sell at 353 USD/ton.
Among the four traditional rice exporting countries: Vietnam, Thailand, India and Pakistan, India is the market having the lowest rice export price. India’s export rice prices were stable at $343/ton, $323/ton and $313/ton.
However, this is totally different type of rice, since India export mainly Bamasti rice, while Vietnam export mainly fragrant rice, and jasmine rice.
Vietnam has been restructuring towards value promotion and sustainable development. The rice industry also aims to improve the quality and value of Vietnamese rice grains.
Vietnam is a growing market for exporting agricultural products, especially rice export, because of its climate and geographical location.
Hence, international businesses ought to take the opportunity to import rice from this potential market.
However, to compete successfully with domestic competitors and those in the same region, sourcing the most profitable factory or finding a reliable partner is quite challenging in Vietnam.
That’s why our VIEC sourcing team is here to support enterprises to connect you directly to trustworthy Vietnamese rice manufacturers within a short time, through our exclusive connection.
With our long-term experience, you can import rice from Vietnam at a lower cost and with good product quality, which will bring better benefits to your business.