Vietnam’s rice exports this year to the end of November hit a record high since 1989 with an export volume of nearly 7.8 million tonnes and turnover of 4.4 billion USD.
Many experts expect that rice export would reach eight million tonnes with a total value of 4.6 billion USD in 2023. The initial target set at the beginning of this year is about seven million tonnes, relatively the same as in 2022.
Nguyen Van Don, Director of Viet Hung Ltd Company in the southern province of Tien Giang said that demand for rice in the global market remains high and prices of exported rice in other countries increase, but Vietnamese rice prices don't because supply has run short. Vietnamese rice exporters are now waiting for the new harvest season.
According to Vietnam Food Association, in the last two weeks, Thai rice’s prices have increased by 5% to 632 USD per tonne, about 50 USD higher than those at the middle of last month. Pakistan's rice is priced at about 600 USD per tonne while Vietnamese rice at 663 USD per tonne.
Chookiat Ophaswongse, Honorary President of the Thai Rice Exporters Association (TREA) said that Thai rice’s prices have recently increased sharply due to the limited supply of Vietnamese rice.
Thai rice exporters received new contracts from "unexpected" customers such as the Philippines and Brazil.
Don said that despite high prices, Vietnamese rice is welcomed by importers thanks to its quality, particularly its freshness. Vietnamese rice products are exported immediately after being harvested.
In terms of supply and demand, the world’s rice demand continues to remain high while India, whose rice exports are equal to the combined export volume of Thailand, Vietnam, Pakistan and Myanmar, has stopped exporting, which led to a shortage in the global market.
The Philippines - a traditional customer of Vietnam and the world's largest rice importer - still has demand for more rice. Recently, to ensure reserves for national food security, the Philippine government has asked this country's traders to increase rice imports. Meanwhile, Indonesia also predicts that its first rice harvest in 2024 will be two months later than usual. As a result, the country will have to import about 2 million tonnes in 2024.
