Vietnam’s rice exports surge on supply crunch
Strong rice export demand coupled with waning supplies have caused prices to surge in the market since the beginning of 2023.
According to the General Department of Vietnam Customs, Vietnam exported 1.85 million tonnes of rice worth US$981.4 million in the first quarter of this year, up 23.4% in quantity and 34.3% in value year-on-year.
The Philippines spent more than US$450 million importing some 900,000 tonnes of Vietnamese rice in the first quarter of this year, and more orders are expected to be placed in the time ahead.
The Southeast Asian neighbouring country was the biggest importer of Vietnamese rice in the quarter, making up 48.2% in volume and 45.9% in value, followed by China, Indonesia, Malaysia and Ghana, the department reported.
The average export price in the reviewed period was estimated at US$531 per tonne, up 9.2% year-on-year, the highest in the past decade.
The global shortage of rice, one of the most consumed food grains in the world, is set to be the largest in the last two decades, according to New York-based research firm Fitch Solutions.
It forecast the global shortfall at 8.7 million tonnes in 2022-2023, which is the highest since the deficit of 18.6 million recorded in 2003-2004.
Experts say the forecasts predict a buoyant market, stressing favourable conditions for Vietnam’s rice exports given the increasing demand for food reserves amid global economic and political uncertainties.
The Agency for Foreign Trade under the Ministry of Industry and Trade (MoIT) suggested businesses keep a close watch on the market, and fully assess opportunities and risks in order to make successful transaction plans, sign suitable contracts and ensure export efficiency.
They should provide updates for the Vietnam Food Association and the MoIT to keep all stakeholders in the loop in Vietnam.