In the first days of the year, rice export orders were abundant, and Vietnam's rice prices continued to peak, surpassing many competitors.
Rice prices are expected to continue to increase.

Data from the Institute of Policy and Strategy for Agriculture and Rural Development shows that rice prices in the Mekong Delta have increased slightly in some localities. Besides, the export price of rice was $458/ton, the highest level since mid-July 2022. On the other hand, rice prices in Soc Trang also remained stable, like Dai Thom 8, OM 5451 at 6,800 VND/kg; ST 24 is 8,000 VND/kg.

In Hau Giang, rice prices fluctuated slightly in some varieties, such as IR 50404 at 6,800 VND/kg, up 200 VND/kg; OM 18 rice is 7,700 VND/kg, an increase of 100 VND/kg. On the other hand, RVT mainly remained stable at 8,200 VND/kg.

According to rice exporters, Vietnamese rice's quality and food safety is increasing, so many high-end markets have been chosen worldwide.

Mr. Nguyen Thai Binh - General Director of Trung An High-tech Agriculture Joint Stock Company, said the company has just closed 8,000 tons of fragrant rice orders. Previously, this enterprise also closed an order for 20,000 tons of rice to South Korea, expected to be exported from the beginning of 2023.

According to Mr. Binh, the price of 5% broken rice is very high and is expected to increase further. The cost of high-quality rice for export is also $750-1,200/ton, depending on the type. This is a favorable price for Vietnamese rice exporters.

Orders received by Trung An company lasted until April 2023; the first quarter was almost complete. To take advantage of the opportunity to export rice in 2023, the Ministry of Agriculture and Rural Development has directed vital production areas to prioritize high-quality short-term rice varieties, fragrant rice varieties suitable to the market's requirements, and reduce the proportion of medium-quality rice varieties and sticky rice.

Reflecting on businesses, there has never been a year when the price of ST24 and ST25 fragrant rice exported to the Middle East and European markets has cost over 1,000 USD/ton as in the past 2022. Not only increasing output and value, but Vietnamese rice grains also increasingly occupy many markets. Many "difficult" markets also recorded high growth. In particular, rice exports to the US market increased by 85%; the EU market grew by 82%.

According to the Vietnam Food Association (VFA), rice prices increased due to high demand from importing countries. The Philippines, the first customer of Vietnam's rice, recently decided not to raise the import tax to curb domestic inflation. In addition, Indonesia and Bangladesh announced plans to import rice for domestic demand earlier. These factors have helped the world rice market increase continuously in recent days.

Many chances

Comments from the Securities Joint Stock Company of the Bank for Investment and Development of Vietnam (BSC) said that rice exports had shown many positive signs in 2023. However, according to BSC, adverse weather events made exporters Large importers such as India and Pakistan reduce their export volume. In contrast, large importers such as China still increased their rice imports.

In increased demand, rice exporters will benefit from the exchange rate difference. In addition, Vietnam and Thailand are expected to hold talks to raise the rice export prices in the context of high input material prices. However, according to BSC, the competitiveness of Vietnamese rice is still not high because it mainly competes with rivals in terms of the selling price, most of which have not met the requirements for the production process and quality assurance for export. To significant markets such as the EU, Japan... This makes the expected increase in rice prices lower than the world average export price growth. On the other hand, Vietnam's input and logistics costs, limited specialization and production capacity, fragmented farming area, etc., will continue to pressure rice enterprises.

According to Dr. Nguyen Dang Nghia - Director of the Center for Tropical Agriculture Research and Consultancy, to take advantage of the opportunity to export rice in 2023, rice exporters must actively cooperate to get a large enough material area (equivalent to a large enough size of raw materials). commensurate with export output) based on the "benefits must be distributed in a harmonious, fair, transparent and shared manner." In addition, the State creates favorable conditions and encourages enterprises to find business partners; expanding markets in the US; EU, Middle East, West, and North Asia. Facilitating the "linking of 4 houses" with enterprises as the main "link" to have projects or contracts to link rice - rice production with added value from planting to product consumption; increase income for growers.

To seize export opportunities for the rice industry, the Ministry of Agriculture and Rural Development has directed vital production areas to prioritize high-quality short-term rice varieties, fragrant rice varieties suitable to the market's requirements, and reduce the proportion of medium-quality rice varieties, and sticky rice. At the same time, continue to promote the restructuring of the rice production industry in the direction of increasing value and coordinate with localities and businesses to focus on building brands for the Vietnamese rice industry.

Source: Collector