Le Thanh Hoa, Deputy Director of the ministry’s Department of Quality, Processing and Market Development, said the rice sector’s outlook is assessed as relatively positive for the second half of 2023 since many other rice producers in Asia are facing risks of declined output due to El Nino impacts, which will boost rice demand and prices in the global market.
    |
 |
|
Rice loaded onto a vessel for delivery at Saigon Port in Ho Chi Minh City |
Vietnam exported 4.27 million tons of rice worth 2.3 billion USD in the first six months, rising 22.2% in volume and 34.7% in value year on year. Export prices averaged 539 USD per tonne, up 10.2% from a year earlier, data from the department show.
Bui Thi Thanh Tam, a representative of the Vietnam Food Association, said the Philippines is the biggest importer of Vietnamese rice. Shipments to China have also posted good growth since its reopening after the COVID-19 pandemic. Meanwhile, Indonesia has begun re-importing rice, so exports to this market have also shot up by up to 1,498%.
Rice export is benefiting from favorable conditions as major markets are still importing strongly such as China, the Philippines, and Malaysia, she noted, adding that this will make export prices increase, or at least not decline.
Rice demand is predicted to grow slightly as a result of limited supplies of other types of grain food. High-quality rice of Vietnam is currently a favourite of consumers in such demanding markets as Europe, the Republic of Korea and Australia or some new destinations like those in the Middle East, which is also an opportunity for boosting the sale of high-quality rice.
Exports are likely to rise further also thanks to higher-than-expected shipments to the Philippines, China, and Indonesia, according to Hoa.
The agriculture ministry said Vietnam plans to cultivate 7.1 million ha of rice in 2023, with average productivity estimated at 6.07 tons of unmilled grain per ha. Total output is expected at 43.11 million tonnes, up 400,000 tons from 2022.
About 3.3 million ha with 21.8 million tons of unmilled rice has been harvested so far. The remaining 3.75 million ha with 21 million tons will be harvested from now to January 2024.
Tam held that demand is growing even further as the General Department of State Reserves has opened rice stockpile bids. Therefore, aside from working to reach this year’s export targets, it is also important to guarantee national food security and the stockpile for early 2024.
Given the soaring global demand and difficulties facing businesses in production and quality improvement, Minister Hoan said the ministry will work with the Ministry of Industry and Trade as well as other sectors to soon tackle hindrances and help firms seize market opportunities.
They will also devise mechanisms and policies to assist the sector to improve quality and value and diversity export markets as in conformity with the strategy for developing rice export markets by 2030, he added.
Source: VNA