VOV.VN - After enduring a period of stagnation, China is purchasing additional rice from the Vietnamese market, with several local enterprises continuously negotiating new export contracts, according to industry insiders.
Specifically, Trung An Hi-tech Agriculture Joint Stock Company exported high-quality shipments of over 2,000 tonnes to the Chinese market in early March.
Pham Thai Binh, general director of Trung An Company, revealed that China and other countries have resumed purchasing rice from Vietnam after several months of being at a standstill.
Binh added that the company is continuing to negotiate the shipment of roughly 20,000 tonnes to China in the time ahead, while the Philippines, Indonesia, Malaysia, and Middle Eastern countries are also showing their keen interest in importing rice from the nation.
According to information given by the General Department of Vietnam Customs, the country exported 2.9 million tonnes of rice worth more than US$1.5 billion during the first four months of the year, duly representing a rise of 40.7% in volume and 51.6% in value on-year.
Of the figure, the nation exported more than 506,000 tonnes of rice worth US$292.5 million to the Chinese market alone.
Most notably, the average export price of rice to the Chinese market during the first quarter of the year stood at US$589 per tonne, up more than 18% against the same period from last year.
According to data compiled by the China Customs, China reduced rice imports from India, Pakistan, and Thailand, whilst moving to sharply increase imports from Vietnam, a factor which helped raise the Vietnamese market share as part of China’s total imports to 19.2% from 6.7% compared to the same period in 2022.
Binh assessed that China represents a traditional market with very high consumption demand due to the country importing up to five million tonnes of rice each year. This has made the average export price of rice to this market increase remarkably, he noted.
Moreover, India - China's major rice supplier, is currently banning broken rice exports, while Pakistan is reducing rice output, a move that has also contributed to the robust growth recently. Furthermore, China's reopening of its borders in recent timeshas been a positive signal for rice exporters.
Insiders analysed that rice exports to China are anticipated to enjoy major breakthroughs moving forward due to the prolonged drought, with the northern neighbour expected to increase imports by six million tonnes of rice in the 2022 to 2023 crop.
In a recent report, Fitch Solutions revealed that that the global rice market will face a shortage of 8.7 million tonnes of rice in the 2022 to 2023 crop, which is expected to create further opportunities for Vietnamese rice exports moving forward.
Nguyen Van Thanh, director of Phuoc Thanh IV Production - Trading Co., Ltd, anticipated that rice exporters will see bright export prospects this year due to the Philippines being able to import 3.1 million to 3.2 million tonnes of rice from Vietnam, while Indonesia and China also plan to purchase rice for reserves due to extreme weather.
He predicted that this year's rice export turnover is likely to edge up by 10% to 15% to reach between US$3.85 billion and US$4 billion.
However, he advised local rice enterprises to strictly monitor the market situation and control inventories in order to sell rice at a good price and avoid suffering losses in the coming time.