Vietnam, the second-largest rice exporter globally, is projected to export 7 million metric tons of rice this year. This increase in exports can be attributed to India’s ban on broken rice exports and the introduction of a 20% duty on various grades of rice. These measures were implemented by India, the world’s largest rice exporter, to stabilize domestic prices after below-average monsoon rainfall affected planting. As a result of these factors, the price of Vietnamese rice has risen by $30 per tonne, now ranging from $408 to $428.
Additionally, improved rice quality contributed to this surge in exports as local governments, farmers, and cooperatives focused on producing higher-quality rice with reduced use of fertilizers and insecticides. Although some regions still rely on traditional cultivation methods, it is crucial for farmers and exporters to collaborate to ensure the production of high-quality rice that meets market demands.
However, there are challenges in connecting farmers with exporters due to intermediaries influencing the market and creating complications in price negotiations. To address this issue, there is a need for the Ministry of Agriculture and Rural Development (MARD) to establish a base price for rice during harvests to stabilize the market and facilitate faster price agreements between exporters and farmers.
Regarding China – Vietnam’s second-largest importer – exporters should stay updated on China’s phytosanitary regulations which have become more stringent over time. While China presents significant opportunities for exporting higher-quality rice, there is still considerable demand for mid-level rice among Chinese consumers. Despite the increasing difficulty of accessing the Chinese market due to stricter rules on packaging, branding, and product origin, China remains an important market for Vietnam due to its large population and substantial food demand.
Apart from China, other key markets include the EU and UK where Vietnamese rice exports have grown following numerous trade deals and agreements.