Rice businesses set to win big on global rising demand in 2024
VOV.VN - With a series of key markets announcing plans to import rice, Vietnamese rice businesses are expected to win big on a rising global demand and rising market prices this year.
Five Vietnamese businesses recently won the bid to supply 500,000 tonnes of rice to Indonesia. Rice will be delivered in February and March when the rice harvest of the winter-spring crop is in full swing in Vietnam.
Winning a large rice export contract right from the beginning of the year is a positive sign for local rice businesses and farmers, especially when the price of rice remains high in the global market, at approx. US$642 per tonne, said the Vietnam Food Association.
Indonesia was reportedly set to import approximately three million tonnes of rice, nearly matching the Philippines’ planned import of Vietnamese rice, which will make Indonesia one of the world's largest rice importers and a key customer for the Vietnamese rice industry.
Meanwhile, the Ministry of Agriculture and Rural Development reported that the Republic of Korea (RoK) is likely to invite tenders for rice imports from a number of countries, with Vietnam to be given a quota of more than 55,000 tonnes.
The RoK’s early announcement of rice import quotas will help Vietnamese businesses be more proactive, and have the opportunity to promote high-quality rice to the Korean market this year, said Pham Thai Binh, general director of Trung An Hi-tech Agriculture Joint Stock Company.
Not only the RoK, the Philippines, which is Vietnam’s largest rice consumer worldwide, has planned to import rice in 2024. According to the US Department of Agriculture (USDA), in 2024 it is likely that the Philippines will be the world’s largest rice importer, with an expected record high volume of 3.8 million tonnes.
Nguyen Van Don, director of Viet Hung Co. Ltd., said that his firm has received many orders from Philippine partners right from the beginning of the year. Currently, Vietnamese rice accounts for more than 80% of the Philippines’ total rice imports.
In previous years, the Philippines purchased rice through intergovernmental negotiations, and Vietnam competed with Thailand, which is also a major supplier of rice to the Philippines. Since 2019, when the Philippines allowed free import, export and trade of rice, removing quotas and rice import restrictions, Vietnam has surpassed Thailand to become the Philippines’ No1 rice exporter.
In the Philippines, Vietnamese rice is a highly competitive product thanks to its high quality and affordable price, meeting the diverse needs of local consumers, especially middle and low income earners, said Don.
Vietnam shipped 8.34 million tonnes of rice last year, earning US$4.78 billion, up 14.4% in volume and 35.3% in value year on year. With the ongoing global high demand for rice, the Vietnam Food Association forecasts rice exports will bring in US$5.3 billion this year.
Vietnam is currently one of the top three rice exporting countries in the world, alongside India and Thailand. So far, Vietnamese rice has been exported to 150 countries and territories around the world
