The export price of Vietnamese rice is the highest in the world in 2022
| In the last 2 months of 2022, if each month reaches the minimum level of 600,000 tons, this year’s rice industry will export 7.2-7.3 million tons, the second highest in history. In particular, not long ago, the price of Vietnamese rice is kept at the highest level in the world, with a gap of 20-50 USD/ton compared to That and Indian rice. |
Vietnam’s rice exports increased strongly
According to data from the General Department of Customs, Vietnam’s rice exports in October 2022 reached 713,546 tons, worth $341.064 million, representing a 22.3% increase in volume and a 23.9% increase in value compared to September 2022.
By the end of October, Vietnam’s rice exports had reached nearly 6.1 million tons, worth approximately 3 billion USD, which is a 17.4% increase in volume and a 7.6% increase in value compared to the same period in 2021.
In the first 10 months of 2022, the Philippines remained the number one market for rice consumption in Vietnam. Rice exports to the Philippines reached 2.739 million tons, accounting for 45.02% of the total and worth $1.266 billion, representing a 30.84% increase in volume and an 18.39% increase in value compared to the same period in 2021.
The Chinese market followed, with rice exports reaching 131,609 tons in October 2022, worth $63,306,470. This represents a 66.68% increase in volume and a 75.04% increase in turnover compared to October last year. Accumulated in the first 10 months of the year, rice exports to China reached 757,575 tons, accounting for 12.45% of the total and worth $382,676,125, which is a decline of 18.01% in volume and 16.78% in value compared to the same period last year.
Rice exports to strict markets also recorded high growth. In the first 10 months of the year, rice exports to the US market increased by 84.8%, and exports to the EU market increased by 82.2%. According to the Vietnam Food Association (VFA), after nearly two years of implementing the EU-Vietnam Free Trade Agreement (EVFTA), Vietnam’s rice exports are gradually asserting their position in the EU market.
Vietnam’s rice export price ranks first in the world
Not only has Vietnam achieved a high export volume for rice, but the export value has also significantly increased. According to the Vietnam Food Association, in October, the price of Vietnam’s 5% broken rice was $425-430/ton, which is the highest level since November of last year. This price is higher than the same grade of rice in India, which is priced at $48-51/ton, and in Thailand priced at $18-23/ton.
In the first two weeks of November, Vietnam’s rice export prices remained high. Specifically, on November 13, traders were purchasing Dai Thong 8 rice in the field at a price of 6,700 – 6,800 VND/kg; OM 5451 rice at 6,500 – 6,650 VND/kg; Miss Hoa 9 rice at 6,800 – 7,000 VND/kg; Long An dry sticky rice at 9,000 – 9,200 VND/kg, and An Giang dry sticky rice at 8,400 – 8,600 VND/kg.
Why is Vietnam’s rice export price leading the world?
According to the Vietnam Food Association, Vietnam’s rice prices have sharply increased due to high demand for international imports in the last months of the year, while supply has been affected by adverse weather conditions in some rice-growing countries. After India restricted its rice exports, many partners turned to other markets, creating opportunities for Vietnamese businesses to boost their exports. Since India adjusted its policy, the price of Vietnamese rice has increased by more than 30 USD/ton.
Additionally, Vietnam’s average export price for rice has increased due to a recent shift in Vietnamese rice exports towards fragrant and high-quality rice segments.
The Vietnam Food Safety Authority (VFA) has stated that Vietnam’s fragrant and high-quality rice segment includes the Dai Thom 8, OM 5451, and OM 18 rice varieties, which cannot be replaced by any other rice exporting country. These rice varieties meet the market demand and are highly competitive compared to the fragrant rice segments of other countries such as Thailand and Cambodia.
Rice market forecast at the end of 2022
Businesses are forecasting that the upward trend in rice prices will continue until the end of December.
The Ministry of Agriculture and Rural Development (MARD) has forecasted that with the positive picture of rice exports from the beginning of the year to the present, it will only need to reach a minimum of 600,000 tons per month in the last two months of the year. Therefore, the total rice exports for the whole year are estimated to be 7.2-7.3 million tons. This continues to be a positive result for Vietnamese rice, surpassing the figure in 2021 (6.2 million tons of rice, equivalent to 3.3 billion USD in exports).
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