Rice exports set to see bright prospects in coming months
VOV.VN - Vietnam’s rice exports are anticipated to continue rising during the second half of the year due to high demand for the staple caused by the complicated nature of the COVID-19 pandemic globally, according to industry insiders.
The Ministry of Industry and Trade reports the country exported 1.89 million tonnes of rice worth US$1.01 billion during the opening four months of the year, representing an annual decrease of 10.8% in volume despite being a rise of 1.2% in value.
The average export price of rice throughout the reviewed period climbed by 13.4% to reach US$534 per tonne against the same period from last year.
The Philippines makes up the largest buyer of Vietnamese rice with 36.3% of the overall market share, followed by China, the Ivory Coast, Cuba, Saudi Arabia, Australia, and Cambodia.
The structure of Vietnamese rice exports has shifted to fragrant rice and high-quality rice, while both farmers and traders have also increasingly taken an interest in improving product quality and origin traceability. Indeed, this is being done to meet the stringent standards set by demanding markets, such as the European Union, the Republic of Korea, and the United States.
Experts also reveal that local rice exports are poised to enjoy a number of advantages in the upcoming months of the year as China has brought the COVID-19 pandemic under control, and rice exports to this market are set to rise in the near future.
Furthermore, India, the world's largest rice exporter, is currently facing difficulties due to the impact of the pandemic, meaning that there are bright prospects ahead for the country’s rice exports in the time ahead.
Last year saw Vietnam diversify its export markets through the signing of several free trade agreements, such as the EU-Vietnam Free Trade Agreement (EVFTA), the Eurasian Economic Commission (EEC), and the UK-Vietnam Free Trade Agreement (UKFTA).
Moving forward, Vietnamese rice exports are expected to enjoy competitive advantages thanks to the implementation of preferential tariffs brought in by these FTAs, with huge export opportunities to the EU, UK, and Eurasian Economic Union.
Most notably, the Government of the Philippines has recently decided to reduce import tax on rice to 35%, which is anticipated to create a wealth of opportunities for Vietnamese rice exports to be shipped to the Philippines in the future.
