Vietnam to be major source of rice supply to Indonesia
Indonesia’s selection of Vietnam as a major source for its rice purchases has further solidified the position and quality of Vietnamese rice, said the Vietnamese Trade Office in Indonesia following a statement from an Indonesian official that Indonesia will import 1.5 million tonnes of rice from Vietnam and Thailand.
The office said the Vietnamese rice is known for its reliability and has earned the trust of the Indonesian Government and consumers in the context that the country is facing a shortfall in domestic food production due to the impact of the El Nino phenomenon.
To make the most of this opportunity, the Vietnamese rice exporters should keep track of the Ministry of Industry and Trade’s instructions regarding rice export to Indonesia. Specifically, rice exporters should proactively monitor market conditions, thoroughly assess opportunities and risks, and build trading plans.
The Indonesia Logistics Bureau Preum Bulog said all the necessary licenses for the import of 1.5 million tonnes of rice have been issued by the relevant Indonesian authorities, and the import is set to commence as early as the end of October 2023.
According to statistics released by the General Department of Vietnam Customs on October 10, Vietnam exported a total of 884,177 tonnes of rice to Indonesia in the first nine months of this year, with a total value of US$462 million, marking respective year-on-year 17.7-fold and 19.2-fold increases.
During the period, Vietnam’s exports to Indonesia hit US$3.79 billion, up 11% from the same period last year.
