VN gets big orders for rice from Southeast Asian countries
Vietnam’s rice is in high demand in Southeast Asian markets as exporters have signed major contracts.
The General Department of Customs (GDC) reported that as of mid-September Vietnam had exported 6.5 million tonnes of rice of different kinds, collecting US$4.06 billion.
The export volume increased slightly by 6.2% over the same period last year, but the export value rose sharply by 21.2% (US$710 million).
Vietnam’s rice enjoys large sales in Southeast Asian markets. The Philippines, Indonesia and Malaysia are the three biggest clients.
The Philippines spent US$1.72 billion to buy 2.81 million tonnes of rice from Vietnam in the last eight months. As such, Vietnam’s rice export volume to the market increased by 19.6%, and export value by 39.8%.
Indonesia has been collecting Vietnam’s rice since last year. In the first eight months 2024, the country bought 913,900 tonnes of rice, worth US$557.8 million. Vietnam’s rice export volume to the market increased by 27.3%, and value by 54.4%.
As for the Malaysian market, Vietnam exported 582,900 tonnes during the same time, collecting US$345.9 million. The exports to the market surged by 112% in quantity and 152.8% in value.
With the sharp increase in rice imports from Vietnam, Malaysia has outpaced China to become the third largest market for Vietnam.
GDC reported that the average export price in the first eight months 2024 was US$625 per tonne, up 14.8%.
According to the Vietnam Food Association (VFA), on September 17, Vietnam’s 5% broken rice price was US$565 per tonne, while 25% broken rice was US$535 and 100% broken rice US$455.
Experts and exporters said it was difficult to predict rice prices for the last months of the year. However, they believe that prices won’t fall as the reserve for export has decreased.
If the export volume in 2024 is equal to that of last year, Vietnam will export 1.5 million tonnes of rice in the upcoming 3.5 months. Meanwhile, 200,000 hectares of rice in the north have been inundated because of the typhoon and floods.
Southeast Asian countries still want to buy more rice this year and they are considering importing rice from Vietnam. The Philippines, for example, plans to import an additional 1 million tons of rice from Vietnam.
Indonesia, the second biggest client, has invited bids to provide 500,000 tonnes of rice in September, with deliveries in October and November.
The market has demand for 5% white broken rice from the 2023-2024 crop, and the rice must be from Vietnam, Thailand, Myanmar, Cambodia or Pakistan.
