Which countries were top importers of Vietnamese rice in the first quarter?

According to Vietnam Agriculture News (VAN), a conference was held on April 26 by the Ministry of Industry and Trade, in collaboration with the Ministry of Agriculture and Rural Development and the People's Committee of Can Tho City. The goal of the conference was to evaluate the outcomes of rice exports in the first quarter of 2024 and discuss the future direction of rice exports.

During the conference, the leaders of the Agency of Foreign Trade (Ministry of Industry and Trade) said that Vietnam's rice exports in the first quarter hit a record high value of around 2.2 million tons, amounting to over USD1.4 billion, according to data from the General Department of Customs. The average price was at about USD654 per ton, representing a 17.6% increase in volume, a 45.5% increase in value, and a 23.6% increase in price compared to the same time in 2023.

In 2023, Vietnam's rice exports reached a total of 8.1 million tons, valued at USD 4.67 billion. This represents a growth of more than 14% in volume and over 35% in value compared to the same time in 2022. The mean export price surged by more than 18% to USD 575 per ton, in comparison to the average price seen in 2022.

Export target of 7.4 million tons of rice 'within reach'

Mr. Nguyen Anh Son, Director of the Agency of Foreign Trade, predicts that worldwide rice output for the 2023-2024 crop year would reach around 518 million tons. Furthermore, the estimated total consumption is expected to reach 525 million tons. Hence, based on projections, it is anticipated that the global rice supply would fall short by around 7 million tons in the current year.

According to an assessment by the United States Department of Agriculture (USDA), the global rice supply is predicted to become less plentiful. This is because India, which is the largest supplier and contributes 40% of global production, is expected to decrease its output by 4 million tons compared to the previous year, resulting in a total of 132 million tons.

Simultaneously, the Philippines, Indonesia, Thailand, and Cambodia, which are significant rice markets, are all projected to reduce output as a result of the effects of El Niño and climate change. This situation provides a favorable circumstance for nations that export rice, such as Vietnam.

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam predicts that Vietnam would export around 7.4 million tons of rice by 2024. The projected rice export volume for the first half of 2024 is around 4.38 million tons, while for the second half of the year, it is expected to exceed 3 million tons.

Deputy Minister Nam said that the present rice output is at about 43 million tons, which is equal to around 20 million tons of rice. This amount adequately satisfies the need for internal consumption, guaranteeing the country's food security and facilitating exports.

'Vietnamese pearls' on the world's dining tables

During the previous quarter, Vietnam's rice exports maintained their dominant position in major markets due to strong demand for output. Vietnamese rice is gaining significant recognition as well as appeal among worldwide importers and consumers, confirming its position in the market.

Based on data from the General Department of Customs, in the first quarter, Vietnam exported significant amounts of rice to nearly 30 countries. The recorded volumes ranged from over 43 tons to over a million tons, resulting in a total export revenue of USD 1.26 billion. This accounted for 90% of the country's overall rice export revenue.

In the Philippines market, Vietnam's rice exports amounted to over 1.01 million tons, valued at roughly USD649 million. This accounted for 46.4% of the total volume and 45.5% of the overall rice export earnings from Vietnam.

In 2023, the Philippines was the biggest market for Vietnam's rice exports. The amount of rice sent was over 3.1 million tons, with a value of USD1.75 billion. This accounted for 38.5% of the total volume and 37.5% of the total value. According to data from the Philippine Bureau of Plant Industry (BPI), Vietnam was the primary source of rice imports for the Philippines in 2023, contributing 84% of the total imports.

Indonesia is the second biggest market, exporting over 445 thousand tons valued at over USD285 million. This represents a substantial growth of about 200% in volume, 308.8% in revenue, and 36.4% in price compared to the same time in 2023.

In 2023, the amount of rice exported to Indonesia reached its highest level in 12 years, totaling approximately 1.2 million tons. This resulted in a revenue of USD 640.2 million, which is a significant rise of 9.8 times in volume and 10.9 times in income compared to the previous year. In 2023, Indonesia emerged as Vietnam's second biggest market for rice exports, with 14.3% of the whole amount. Consequently, Vietnam has emerged as Indonesia's second most significant rice exporter, after only Thailand.

In the first quarter of 2024, rice exports to Malaysia reached 98,917 tons, with a value above USD61.5 million. This represents a 28.8% increase in volume, a 60.6% increase in income, and a 24.7% increase in price compared to the first quarter of 2023. These figures place rice exports in the third position.

As a result, Malaysia has briefly overtaken China to become Vietnam's third biggest market for rice exports. China dominated the market in 2023, holding the top position with a volume of 917,255 tons, valued at USD530.6 million.