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

List of figures
Figure 1: GDP growth by quarter, 2016 – 2019
Figure 2: GDP structure at current prices, Q1/2019
Figure 3: VND/USD exchange rate, 1/2013-3/2019
Figure 4: Average interest rate, 2012- 3T/2019
Figure 5: Proportion value of rice-paddy industry contributing to Vietnam exports, 2010 – Q1/2019
Figure 6: Commodity imports and exports, 2016-Q1/2019
Figure 7: Rice exports proportion of Vietnam to ASEAN countries in 2018-Q1/2019
Figure 8: Paddy area, output and global productivity in the period of 1960/61 – 2018/19f
Figure 9: The quantity of fertilizer used in rice-paddy cultivation, 2010 – 2018f
Figure 10: The structure of rice production output by regions, 2018/19f
Figure 11: Global rice-paddy production, 2008/09 – 2018/19f
Figure 12: The structure of rice production output by countries, 2018/19f
Figure 13: Rice consumption in the period from 1960/61 to 2018/19e
Figure 14: Rice consumption by regions in the season 2018/2019e
Figure 15: Rice consumption by using purposes, 2012/13 – 2018/19e
Figure 16: Top 10 largest rice consumers in the season 2017/18 – 2018/19e
Figure 17: Rice consumption per capita in the regions, 2006 – 2027f
Figure 18: Incomes and rice consumption per capita of some countries in 2018
Figure 19: Global rice exports in the period from 2000/01 – 2018/19e
Figure 20: Top 10 largest rice importers in the season 2018/19e
Figure 21: Rice imports by regions, 2018e
Figure 22: Top 10 rice exporters in the season 2018/19e
Figure 23: Rice exports by regions, 2018e
Figure 24: Rice price movements from 11/1987 to 2/2019
Figure 25: Price correlation of Thailand, 01/2010-02/2019
Figure 26: Area, output and productivity of India rice-paddy industry 2000/01 – 2019/20f
Figure 27: India rice consumption, 2011/12 – 2019/20e
Figure 28: India rice exports, 2011/12 – 2019/20
Figure 29: Production output, consumption of rice in China, 2012/13 – 2019/20e
Figure 30: Rice trade of China, 2012/13 – 2019/20
Figure 31: Rice-paddy area and output, 1961 – 2018
Figure 32: Structure of domestic rice distribution market in 2016
Figure 33: Rice-paddy area and output in the 3 seasons of the period from 2010 to Q1/2019
Figure 34: Rice-paddy cultivated area by regions, 2010 -9M/2018
Figure 35: Fertilizer application for rice cultivation averaged over 1ha, 2010 – 2016e
Figure 36: Vietnam rice production, 2010/11 – 2019/20f
Figure 37: Vietnam rice consumption, 2010/11 – 2019/20
Figure 38: The structure of rice consumption by volume, 2017e
Figure 39: Export volume and value of rice, 2010 – 2019f
Figure 40: The structure of rice export by volume, Q1/2019
Figure 41:The structure of rice export by products, 2018e
Figure 42: Rice proportion exported under concentrated export contract, 2007 – 9M/2018
Figure 43: Comparison of the asking price for exported rice between Thailand and Vietnam in 2018
Figure 44: Comparison of the asking price for exporting to some countries, 2014 – 2018
Figure 45: Net revenue of 10 enterprises in the industry, 2016 – 2017
Figure 46: Gross profit margin, 2016 – 2017
Figure 47: Selling expense/Net revenue, 2016 – 2017
Figure 48: General and administrative expense/Net revenue, 2016 – 2017
Figure 49: Financial expenses/net revenue, 2016 – 2017
Figure 50: Days of sales outstanding, 2016 – 2017
Figure 51: Solvency ratio, 2017
Figure 52:Days’ sales in inventory, 201
Figure 53: Asset structure and total assets turnover in 2017
Figure 54: Debt structure and debt/equity ratio 2017
Figure 55: Return on assets and equity, 2017

List of tables
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, 2016/17-2019/20f
Table 6: Thailand’s rice export by categories, 2015 = 2018
Table 7: Rice mortgage program in MY2018/19 of Thailand government
Table 8: Comparison of FOB price of rice exported to China, by some main countries, 3/2019
Table 9: Main rice-paddy cultivated seasons in Vietnam
Table 10: The ranking table of leading exporters in 2017 and 2018 by volume
Table 11: Comparison of the asking price for exported rice between Thailand and Vietnam in Q1/2019
Table 12: Domestic price for rice in Q1/2019Table 13: TOP OF THE LARGEST RICE-PADDY ENTERPRISES WITH THE GREATEST REVENUE IN 2017