Vietnam’s rice export industry is poised to set a new benchmark in 2024, with insiders predicting a record volume surpassing 8 million tonnes and a total export value exceeding $5 billion. According to Ha Nam, Vice President of the Vietnam Food Association and CEO of Intimex Group, the country has capitalized on strong demand from major markets like the Philippines and Indonesia, as well as an increasing preference for higher-quality rice varieties.
The Ministry of Agriculture and Rural Development reports that from January to October 2024, Vietnam exported nearly 7.8 million tonnes of rice, generating $4.86 billion. This represents a 10.2% increase in volume and an impressive 23.4% rise in value compared to the same period in 2023. The average export price climbed to over $626 per tonne, marking a 12% increase year-on-year, driven by the quality of the grain and robust market demand.
The Philippines continues to be Vietnam’s top rice export destination, accounting for over 45% of total exports. By the end of October, the Philippines had imported 2.91 million tonnes of Vietnamese rice, a figure that makes up 79% of its overall rice imports of 3.68 million tonnes. The Vietnam Trade Office in the Philippines predicts further increases in imports due to rising domestic consumption and harvest losses from natural disasters, potentially pushing total imports to over 4 million tonnes by year-end.
Indonesia also played a key role in Vietnam’s export success. In October, Vietnamese companies secured a deal for 83,500 tonnes of rice as part of Indonesia’s tender for 500,000 tonnes. This agreement highlights Indonesia’s willingness to pay a premium for Vietnamese rice, which is regarded as superior in quality compared to other suppliers, such as India.
Despite the competition, Ha Nam remains optimistic. He explains that Indian rice, which recently re-entered the global market, does not pose a significant threat because it is generally lower quality and targeted at African markets. Meanwhile, Vietnamese farmers have been increasingly focused on cultivating fragrant and specialty rice varieties that are more desirable on the international stage.
The stability of domestic rice prices remains a point of interest, particularly as unpredictable weather patterns, such as storms and flooding, are expected to limit supply toward the end of the year. However, with substantial orders secured for the remainder of 2024, market insiders believe that prices will remain strong.
Overall, Vietnam’s agriculture sector is confident in the future, with a projected annual rice output of 43 million tonnes. This volume ensures a secure supply for domestic consumption and export, further bolstering the nation’s position as a leading player in the global rice market.
Vietnam’s rice export sector is not only meeting but exceeding expectations, fueled by strategic market positioning and the production of higher-quality rice varieties. As demand continues to grow in key markets like the Philippines and Indonesia, and with the agricultural sector making forward-looking investments, Vietnam is set to maintain its upward trajectory in the global rice trade.
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