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Vietnam's rice export for Q2/2017 PDF Print
Friday, 10 November 2017 14:30

VIETRADE - Among agricultural products, rice is profoundly indispensable to the daily lives of the 94 million Vietnamese who would all agree that they couldn’t live without it. Rice is playing the most important role in Vietnam’s food security and rural economy, generating jobs for a flabbergasting 60% of the country’s workers, and is a source of export revenue. The agricultural and rural census for 2011 of the General Statistics Office of Vietnam showed that 9.27 million households grew rice, translating to 77.6% of the total households with farmland.

 

Vietnam’s rice-processing technology is advanced. There is the producing of superior-quality rice such as rice categorized 2% and 5% broken. Application of color-separation technology is also occurring in rice-processing plants to raise rice-processing capacity in accordance with the quality specified in orders. Some rice processors have established food quality control systems meeting the demanding HACCP standard.

 

Vietnam’s reputation is one of having earned renown as one of the world’s most important rice producers and exporters. Surprisingly, before 1986, the country had to import rice, because rice production could not meet domestic demand. These necessary rice imports were high - exceeding 1 million tons during the late 1960s on into 1976.

 

In 2016, major types of rice export were white rice of a 5%-25% broken rate (accounting for 70% of total export volume). Aromatic rice accounted for a quarter of total export rice volume, including Jasmine 85, Soc Trang, Nang Hoa, Huong Lai, KDM andVD20. Among the aromatic rice varieties, Jasmine was the largest product.

 

Vietnams_export_rice_type_in_2016

Source: General Department of Vietnam Customs


Export markets for Vietnam’s rice are quality-dependent. For example, high-quality rice is usually exported to difficult markets such as Japan and EU, while lower-quality rice is exported to Asian markets such as China, Indonesia, Philippines, Malaysia, and some African countries.

 

Vietnamese Rice Export Revenue, 2010–2017

Vietnamese_Rice_Export_Revenue_20102017

Source: General Department of Vietnam Customs


According to the Ministry of Agriculture and Rural Development (MARD), in the first six months of 2017, rice export revenue reached 2.8 million tons, equivalent to US$1.3 billion, up 8.2% in quantity and 8.8% in value over the same period of the prior year. The average export price in the first six months of 2017 reached US$444.6/ton, down 1.4% over the same period in 2016.

 

China is the top buyer of Vietnam’s rice. Export volume to this market in the first half of 2017 accounted for 43% of Vietnam’s total exports, up 35% in quantity and 33% in volume. Specifically, rice export to China reached 1.23 million tons, equivalent to US$557.3.

 

The Philippines, Vietnam's second largest rice export market, accounted for 9% in volume and 8% in export revenue, reaching 267,620 tons or US$103.8 million, up 38.4% in volume and 26% in value.

 

Rice exports to Ghana continued to plunge - 31% in volume and 28% in value over the same period of 2016, with 170,620 tons valued at US$85.15 million, accounting for 5.9% in volume and 6.7% in value.

 

The most noticeable export market of Vietnam’s rice for the first six months was Senegal. Although export revenue reached only 13,345 tons, equivalent to US$4.5 million, it increased 114 times in volume and nearly 60 times in value as compared to that of 2016.

 

Other massive buyers: Algeria (up over 400% in volume and value), Russia (up over 250% in both volume and value), Chile (up 183% in volume and up 171% in value), Ukraine (up 271% in volume and 258% in value), and Belgium (up 232% in volume and 162% in value).

 

Vietnam’s rice exports by country for the first half of 2017

Vietnams_rice_exports_by_country_for_the_first_half_of_2017

Source: General Department of Vietnam Customs


Vietnam targets exporting 4 million tons of rice by 2030, under the Development Strategy of Rice Export Markets in 2017-2020 and Vision to 2030 approved recently by the Prime Minister. By 2030, the Asian market is to account for about 50% of total rice exports, Africa 25%, the Americas 10%, Europe 6%, the Middle East 5%, and Oceania 4%. The strategies’ general direction is shifting the structure of exports towards sustainable development in key markets. At the same time, paying attention to development of markets where there is demand for high-quality rice is key.

 
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