VIETNAM RICE PADDY INDUSTRY

As of December 2018, the world rice price fell to 404 USD / ton, higher than the same period last year, but lower than the price achieved in the beginning of 2018. Rice price is forecasted to rise drammatically in 2019 and keep the high cost for years, which marks the rice price increasing cycle all over the world.

Rice is not only the main food crop but the main source of income for millions of households in rural Vietnam as well. The 17/18 season saw a slight increase in the yield of rice which was recorded at 0.45% and achieved 22,200 thousand tons. Although rice exports bring a significant source of foreign currency to the country, the rice industry income is still very low compared to the average level of society.

In general, agricultural production in 2018 attained quite good results. Rice exports are estimated to rise 6.7% in quantity and 21.3% in value compared to the same period of 2017. China always maintains the largest market for Vietnamese rice that accounts for 22% of the total yeild in 2018 and the total rice export turnover of the whole country reached 1,332,888 tons.

The year 2019 is forecasted to be a promising year for rice paddy industy as two countries competing directly to Vietnam ( India and Thailand) are lack of rice supply due to a drop in reserves while the demand of Banglasdesh and African countries are raising. Besides,some emerging markets such as Iraq and the Philippines have been and will continue to be potential markets for Vietnam to increase exports, which leads to Vietman’s reducing dependence on China. On the other hand,the rice price is forecasted to increase sharply from 2019, which will also be a driving force for Vietnam’s rice industry in the future.

Abbreviations
Summary
1. Business Environment
1.1 Macroeconomic Situation
1.2 Legal Framework
1.3 The impact of Free Trade Agreements
2. Global rice-paddy market
2.1 Establishment history
2.2 Classification
2.3 Input factors
2.4 Production
2.5 Consumption
2.6 Global rice trade
2.7 Price movements
2.8 Typical countries
3. Vietnam rice-paddy market
3.1 History of establishment and development
3.2 Industry value chain
3.3 Rice-paddy cultivation
3.4 Rice production
3.5 Rice consumption
3.6 Rice trade
3.7 Price movements
4. Risks
4.1 Risks
4.2 Challenges
4.3 Analysis of competitiveness
5. Scale
6. Enterprise analysis
6.1 Introduction of enterprises
6.2 Enterprises analysis
7. Appendix

VINAFOOD II
VINAFOOD I
TAN THANH AN COMPANY LIMITED
Kigimex
TAN DONG TIEN JSC
GIA INTERNATIONAL CORP
TIN THUONG INVESTMENT TRADING JSC
THUAN MINH IMPORT EXPORT CORPORATION
AGRICAM
VIETNAM INTIMEX JOINT STOCK CORPORATION

Figure 1: GDP growth, 2011 – 9M/2018
Figure 2: Contribution structure of industries to Viet Nam GDP, 9M/2018
Figure 3:  VND/USD exchange rate, 2016-9/2017
Figure 4: Interest rate, 2012 – 9M/2018
Figure 5: Commodity imports and exports, 2014 – 9M/2018
Figure 6: Proportion value of rice-paddy industry contributing to Vietnam exports, 2010 – 9M/2018
Figure 7: Vietnam trade integration process from 1995 to present
Figure 8: Rice exports proportion of Vietnam to ASEAN countries in 2017
Figure 9: Rice exports proportion of Vietnam to ASEAN countries in the first 9 months of 2018
Figure 10: Paddy area, output and global productivity in the period of 1960/61 – 2017/18
Figure 11: The quantity of fertilizer used in rice-paddy cultivation, 2010 – 2018f
Figure 12: Global rice-paddy production, 2008/2009 – 2018/2010F
Figure 13: The structure of rice production output by regions, 2016/17
Figure 14: The structure of rice production output by countries, 2017/18
Figure 15: Rice consumption in the period from 1960/61 to 2017/18e
Figure 16: Rice consumption by regions in the season 2016/2017
Figure 17: Rice consumption by using purposes, 2012/13 – 2017/18e
Figure 18: Top 10 largest rice consumers in the season 2017/18e
Figure 19: Rice consumption per capita in the regions, 2006 – 2016  
Figure 20: Incomes and rice consumption per capita of some countries in 2016
Figure 21: Global rice exports in the period from 2000/01 – 2017/18e
Figure 22: Top 10 largest rice importers in the season 2017/18
Figure 23: Rice imports by regions, 2018e
Figure 24: Top 10 rice exporters in the season 2017/18
Figure 25: Rice exports by regions, 2018e
Figure 26: Rice price movements from 11/1987 to 9/2018
Figure 27: Thailand rice exports, 2010/11 – 2017/18
Figure 28: Area, output and productivity of India rice-paddy industry
Figure 29: India rice consumption, 2011/12 – 2018/19F
Figure 30: India rice exports, 2011/12 – 2018/19F
Figure 31: Production output, consumption of rice in China, 2012/13 – 2018/19F
Figure 32: Rice trade of China, 2012/13 – 2018/19F
Figure 33: Rice-paddy area and output, 1961 – 2017
Figure 34: Rice-paddy production and distribution chain
Figure 35: Structure of domestic rice distribution market in 2016
Figure 36: Rice-paddy area and output in the 3 seasons of the period from 2010 to 2018e
Figure 37: Rice-paddy cultivated area by regions, 2010 -2017e
Figure 38: Fertilizer application for rice cultivation averaged over 1ha, 2011 – 2014
Figure 39: Vietnam rice production, 2010/11 – 2017/18f
Figure 40: Vietnam rice consumption from 2010/11 to 2017/18
Figure 41: The structure of rice consumption by volume, 2017e
Figure 42: Export volume and value of rice, 2010 – 9M/2018
Figure 43: The structure of rice export by volume, 9M/2018
Figure 44: The structure of rice export by products, 2017e
Figure 45: Rice proportion exported under concentrated export contract, 2007 – 6M/2018
Figure 46: The structure of rice exports by output, 6M/2018
Figure 47: Comparison of the asking price for exported rice between Thailand and Vietnam in 2017
Figure 48: Comparison of the asking price for exporting to some contries, 2014 – 2018
Figure 49: Net revenue of 10 enterprises in the industry, 2016 – 2017
Figure 50: Gross profit margin, 2016 – 2017
Figure 51: Selling expense/Net revenue, 2016 – 2017
Figure 52: General and administrative expense/Net revenue, 2016 – 2017
Figure 53: Financial expenses/net revenue, 2016 – 2017
Figure 54: Days of sales outstanding, 2016 – 2017
Figure 55: Solvency ratio, 2017
Figure 56: Days’ sales in inventory, 2017
Figure 57: Asset structure and total assets turnover in 2017
Figure 58: Debt structure and debt/equity ratio 2017
Figure 59: Return on assets and equity, 2017
Table 1: Limit of agricultural land allocation due to Land Law 2013
Table 2: Preferential Tariff Scheme for rice- paddy in
EAEU FTA 2018- 2022
Table 3: Tariff scheme of Viet Nam for rice – paddy in CPTPP
Table 4: The competitiveness comparison of long grain rice between some countries in the world
Table 5: Area, output and productivity of Thailand rice-paddy industry
Table 6: Rice mortgate program in MY2018/19 of Thailand government
Table 7: Main rice-paddy cultivated seasons in Vietnam
Table 8: Domestic price for rice in 2017
Table 9: Comparison of the asking price for exported rice between Thailand and Vietnam in 9M/2018
Table 10: Domestic price for rice in 2017
Table 11: Top of the largest rice-paddy enterprises with the greatest revenue in 2017