Vietnam's rice exports hit a record high

Vietnam exported nearly 4.2 million tons of rice during the first seven months of 2022, representing an increase of over 20% year-on-year, according to the Ministry of Agricultural and Rural Development (MARD).

Rice production for exports at Loc Troi Company. Photo: Nguyen Binh

“Despite fierce competition, Vietnamese rice products continue to be among the favorites in the international market,” stated the ministry in a report.

During the January-July period, Vietnam exported 4.19 million tons of rice for over US$2 billion, an increase of 20.5% year-on-year in volume and 9% in value.

Among Vietnam’s major markets, the US recorded the highest growth with an increase of 65.3% in rice imports during the first half, followed by the Philippines with 48.6%.

The Philippines remained Vietnam’s largest rice buyer and made up 44.5% of total exports. Rice demands from African countries, China and Cuba continued to be high and contributed to Vietnam’s positive rice export performance in the first months of the year.

During the first half of 2022, rice prices on the global market averaged $489 per ton, down 10.2% year-on-year, while Vietnam’s 5%-broken rice was offered at $415-420 per ton, lower than the price of $470 recorded in the same period last year.

The Vietnam Food Association (VFA) forecast Vietnam’s rice export prospects during the remainder of the year would stay bright with growing demand from the international markets.

“Rice prices are expected to stay at a high level or even go up due to the impacts from the Russia-Ukraine conflict,” noted VFTA Chairman Nguyen Ngoc Nam at a recent conference.

Nam also called for local rice exporters to frequently update the situation from major markets including China, Indonesia, or the Philippines to adjust their operations.

He said firms should be aware of strict demand for rice quality from key markets, especially the EU, regarding the level of pesticides, to avoid any complications during the export process and impact the credibility of Vietnam’s rice products.

This year, Vietnam targets to export 6.3 million tons of rice for a turnover of $3.3 billion.