The Ministry of Industry and Trade (MoIT) said though rice export to the E.U. is not big in volume compared to other regional markets, it posts high added value since the 27 E.U. members consume mainly fragrant and high-quality grain from Vietnam. Domestic firms have made full use of the rice quota entitled to an import duty of 0% to boost shipments to the bloc, reported the Cong Thuong (Industry & Trade) newspaper.
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Vietnam exported 94,510 tons of rice to the E.U. in 2022. |
In 2022, the country saw a sharp increase in rice export to the E.U. to 94,510 tons, surpassing the annual quota of 80,000 tons granted to Vietnam under the EVFTA. Prices of the produce sold to the E.U. stood at 688 USD per ton, 41.4% higher than the general export price of 486 USD per ton of Vietnamese rice, statistics show.
This indicates the quality of Vietnamese rice has been improved and satisfied strict requirements from demanding markets, and that enterprises have been making good use of the EVFTA.
In the first four months of 2023, Vietnam shipped nearly 2.9 million tons of rice worth almost 1.53 billion USD abroad, up 40.7% in volume and 51.6% in value from a year earlier. Export prices averaged 527 USD per ton, rising 7.8%. Notably, exports to some E.U. markets surged such as the Netherlands 44%, Poland 68%, Spain 89%, and Belgium 149%.
With stable demand, especially for fragrant and high-quality rice, the E.U. is expected to remain a highly potential market for Vietnamese exporters, according to Cong Thuong.
Under the EVFTA, the E.U. granted Vietnam an annual export quota of 80,000 tons of rice, including 30,000 tons of milled, 20,000 tons of unmilled, and 30,000 tons of fragrant one. In particular, it will completely liberalize the export of broken rice, which will help Vietnam ship about 100,000 tons of this type of grain to this block each year. Meanwhile, import duties on products made from rice will be slashed to 0% after three - five years.
Source: VNA